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Configurations of effectuation, causation, and bricolage: implications for firm growth paths

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  • Wenwen An

    (Guangdong University of Technology)

  • Charles-Clemens Rüling

    (Grenoble Ecole de Management, Univ Grenoble Alpes CoMUE
    Université Savoie Mont Blanc)

  • Xin Zheng

    (Sun Yat-Sen University)

  • Jianqi Zhang

    (Sun Yat-Sen University)

Abstract

This study examines how firms’ decision-making logics and entrepreneurial resourcing behaviors combine to create value. We conduct a qualitative comparative analysis investigating configurations of effectuation, causation, and bricolage that are associated with firm performance. We consider firm size and development stage as contextual factors that differentiate the effectiveness of ways in which firms combine effectuation, causation, and bricolage. Using a sample of 305 Chinese firms, we find six solutions explaining entrepreneurial processes in high-performing firms. Based on a comparison of effective configurations across firm size and development stages, we theorize three paths along which small early-stage firms can evolve into large late-stage firms while maintaining high performance.

Suggested Citation

  • Wenwen An & Charles-Clemens Rüling & Xin Zheng & Jianqi Zhang, 2020. "Configurations of effectuation, causation, and bricolage: implications for firm growth paths," Small Business Economics, Springer, vol. 54(3), pages 843-864, March.
    • Handle: RePEc:kap:sbusec:v:54:y:2020:i:3:d:10.1007_s11187-019-00155-8
    DOI: 10.1007/s11187-019-00155-8
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    9. Bai, Wensong & Johanson, Martin & Oliveira, Luis & Ratajczak-Mrozek, Milena & Francioni, Barbara, 2022. "Where business networks and institutions meet: Internationalization decision-making under uncertainty," Journal of International Management, Elsevier, vol. 28(1).
    10. Laurence Cohen & Peter Wirtz, 2022. "Decision-making style in entrepreneurial finance and growth," Small Business Economics, Springer, vol. 59(1), pages 183-210, June.
    11. Du, Yunzhou & Kim, Phillip H., 2021. "One size does not fit all: Strategy configurations, complex environments, and new venture performance in emerging economies," Journal of Business Research, Elsevier, vol. 124(C), pages 272-285.
    12. Kusi, Samuel Yaw & Gabrielsson, Peter & Baumgarth, Carsten, 2022. "How classical and entrepreneurial brand management increases the performance of internationalising SMEs?," Journal of World Business, Elsevier, vol. 57(5).
    13. Scazziota, Vanessa & Serra, Fernando & Sarkar, Soumodip & Guerrazzi, Luiz, 2023. "The antecedents of entrepreneurial action: A meta-synthesis on effectuation and bricolage," Journal of Business Research, Elsevier, vol. 155(PA).
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    16. Huang, Shuangfa & Battisti, Martina & Pickernell, David, 2023. "The roles of innovation strategy and founding team diversity in new venture growth," Journal of Business Research, Elsevier, vol. 158(C).
    17. Paul Muller & Bérangère L. Szostak & Thierry Burger-Helmchen, 2020. "The role of middleground's entrepreneurial activities for the circulation of creative ideas. The case of Krautrock Music [Le rôle d’intermédiation des activités entrepreneuriales du middleground da," Post-Print hal-03539612, HAL.
    18. Christopher Idemudia EBEGBETALE & Abdul-Hameed Adeola SULAIMON & Simeon Emezana IFERE, 2024. "Impact of Causation and Effectuation on Competitiveness among Nano Businesses in Nigeria," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 91-103, February.
    19. David J. Rapp, 2022. "Predictive vs. non-predictive entrepreneurial strategies: What’s the difference, anyway?," Review of Managerial Science, Springer, vol. 16(7), pages 2161-2179, October.
    20. Amirmahmood Amini Sedeh & Rosa Caiazza & Amir Pezeshkan, 2023. "Unraveling the resource puzzle: exploring entrepreneurial resource management and the quest for new venture success," The Journal of Technology Transfer, Springer, vol. 48(5), pages 1552-1573, October.

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    More about this item

    Keywords

    Effectuation; Causation; Bricolage; Firm performance; Qualitative comparative analysis (QCA);
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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