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Causation and effectuation processes: A validation study

  • Chandler, Gaylen N.
  • DeTienne, Dawn R.
  • McKelvie, Alexander
  • Mumford, Troy V.
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    We develop and validate measures of causation and effectuation approaches to new venture creation and test our measures with two samples of entrepreneurs in young firms. Our measure of causation is a well-defined and coherent uni-dimensional construct. We propose that effectuation is a formative, multidimensional construct with three associated sub-dimensions (experimentation, affordable loss, and flexibility) and one dimension shared with the causation construct (pre-commitments). As specified by Sarasvathy (2001), we also show that causation is negatively associated with uncertainty, while experimentation, a sub-dimension of effectuation, is positively correlated with uncertainty. The major contribution is the resulting validated scales that measure causation and effectuation.

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    Article provided by Elsevier in its journal Journal of Business Venturing.

    Volume (Year): 26 (2011)
    Issue (Month): 3 (May)
    Pages: 375-390

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    Handle: RePEc:eee:jbvent:v:26:y:2011:i:3:p:375-390
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