IDEAS home Printed from https://ideas.repec.org/a/bpj/erjour/v13y2023i2p381-408n11.html
   My bibliography  Save this article

Effectuation (EF) and Causation (CS) on Venture Performance and Entrepreneurs’ Dispositions Affecting the Reliance on EF and CS

Author

Listed:
  • Yoon Jang Hyo

    (Entrepreneurship, School of Business Administration, Seoul School of Integrated Sciences and Technologies, Seoul, The Republic of Korea)

  • Cho Erin

    (Strategic Design Management, Parsons School of Design, The New School, New York, USA)

Abstract

This study investigates whether and how different decision logics (i.e., effectuation and causation) are linked to venture performance (i.e., annual average growth in revenue and profit as well as subjective assessments of venture performance and funding status). We also examine how dispositional characteristics of an entrepreneur (i.e., learning and performance goal orientations, ambiguity tolerance, desire for change, and locus of control) influence the use of different decision logics. The results indicate that causation has a significantly positive effect on revenue growth as well as subjective assessments of venture performance and funding status, while effectuation has a significantly negative effect on profit growth. We find that learning-goal orientation leads to a greater reliance on effectuation, while performance-goal orientation increases the use of causation. An internal locus of control positively affects the reliance on both effectuation and causation, while the desire for change increases the use of effectuation.

Suggested Citation

  • Yoon Jang Hyo & Cho Erin, 2023. "Effectuation (EF) and Causation (CS) on Venture Performance and Entrepreneurs’ Dispositions Affecting the Reliance on EF and CS," Entrepreneurship Research Journal, De Gruyter, vol. 13(2), pages 381-408, April.
    • Handle: RePEc:bpj:erjour:v:13:y:2023:i:2:p:381-408:n:11
    DOI: 10.1515/erj-2020-0054
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/erj-2020-0054
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/erj-2020-0054?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:erjour:v:13:y:2023:i:2:p:381-408:n:11. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.