IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v34y2019i1p23-40.html
   My bibliography  Save this article

Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process

Author

Listed:
  • Jiang, Yi
  • Tornikoski, Erno T.

Abstract

In this study, drawing on effectuation theory, we combine analytical strategies for process data to examine inductively and theorize how founder teams' perceptions of uncertainty and behavioral logics develop during new venture creation processes. The results reveal four phases and suggest a possible evolution from a causal conditional relationship between perceived uncertainty and behavioral logics to an integrative relationship. We bring to light the notion of temporality and unanticipated consequences, discuss their central roles in perceived uncertainty, effectuation, and causation, and offer revelatory insights into why and when effectuation is used in relation to uncertainty and entrepreneurial action.

Suggested Citation

  • Jiang, Yi & Tornikoski, Erno T., 2019. "Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process," Journal of Business Venturing, Elsevier, vol. 34(1), pages 23-40.
    • Handle: RePEc:eee:jbvent:v:34:y:2019:i:1:p:23-40
    DOI: 10.1016/j.jbusvent.2018.06.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902616300970
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusvent.2018.06.002?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.

    References listed on IDEAS

    as
    1. Maria Minniti & William Bygrave, 2001. "A Dynamic Model of Entrepreneurial Learning," Entrepreneurship Theory and Practice, , vol. 25(3), pages 5-16, April.
    2. Baron, Robert A., 2009. "Effectual versus predictive logics in entrepreneurial decision making: Differences between experts and novices: Does experience in starting new ventures change the way entrepreneurs think? Perhaps, bu," Journal of Business Venturing, Elsevier, vol. 24(4), pages 310-315, July.
    3. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2009. "Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices," Journal of Business Venturing, Elsevier, vol. 24(4), pages 287-309, July.
    4. Andrew H. Van de Ven & Marshall Scott Poole, 1990. "Methods for Studying Innovation Development in the Minnesota Innovation Research Program," Organization Science, INFORMS, vol. 1(3), pages 313-335, August.
    5. Tuija Mainela & Vesa Puhakka, 2009. "Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets," Journal of International Entrepreneurship, Springer, vol. 7(2), pages 111-134, June.
    6. Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
    7. Welter, Christopher & Kim, Sungho, 2018. "Effectuation under risk and uncertainty: A simulation model," Journal of Business Venturing, Elsevier, vol. 33(1), pages 100-116.
    8. Brettel, Malte & Mauer, René & Engelen, Andreas & Küpper, Daniel, 2012. "Corporate effectuation: Entrepreneurial action and its impact on R&D project performance," Journal of Business Venturing, Elsevier, vol. 27(2), pages 167-184.
    9. Kalinic, Igor & Sarasvathy, Saras D. & Forza, Cipriano, 2014. "‘Expect the unexpected’: Implications of effectual logic on the internationalization process," International Business Review, Elsevier, vol. 23(3), pages 635-647.
    10. Diamanto Politis, 2005. "The Process of Entrepreneurial Learning: A Conceptual Framework," Entrepreneurship Theory and Practice, , vol. 29(4), pages 399-424, July.
    11. Choi, Young Rok & Lévesque, Moren & Shepherd, Dean A., 2008. "When should entrepreneurs expedite or delay opportunity exploitation?," Journal of Business Venturing, Elsevier, vol. 23(3), pages 333-355, May.
    12. Jeffery S. McMullen & Dimo Dimov, 2013. "Time and the Entrepreneurial Journey: The Problems and Promise of Studying Entrepreneurship as a Process," Journal of Management Studies, Wiley Blackwell, vol. 50(8), pages 1481-1512, December.
    13. Chandler, Gaylen N. & DeTienne, Dawn R. & McKelvie, Alexander & Mumford, Troy V., 2011. "Causation and effectuation processes: A validation study," Journal of Business Venturing, Elsevier, vol. 26(3), pages 375-390, May.
    14. Lipshitz, Raanan & Strauss, Orna, 1997. "Coping with Uncertainty: A Naturalistic Decision-Making Analysis," Organizational Behavior and Human Decision Processes, Elsevier, vol. 69(2), pages 149-163, February.
    15. John T. Perry & Gaylen N. Chandler & Gergana Markova, 2012. "Entrepreneurial Effectuation: A Review and Suggestions for Future Research," Entrepreneurship Theory and Practice, , vol. 36(4), pages 837-861, July.
    16. Greg Fisher, 2012. "Effectuation, Causation, and Bricolage: A Behavioral Comparison of Emerging Theories in Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 36(5), pages 1019-1051, September.
    17. Scott Shane, 2000. "Prior Knowledge and the Discovery of Entrepreneurial Opportunities," Organization Science, INFORMS, vol. 11(4), pages 448-469, August.
    18. McKelvie, Alexander & Haynie, J. Michael & Gustavsson, Veronica, 2011. "Unpacking the uncertainty construct: Implications for entrepreneurial action," Journal of Business Venturing, Elsevier, vol. 26(3), pages 273-292, May.
    19. Tornikoski, Erno T. & Newbert, Scott L., 2007. "Exploring the determinants of organizational emergence: A legitimacy perspective," Journal of Business Venturing, Elsevier, vol. 22(2), pages 311-335, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sebastian Markus Szambelan & Yi Dragon Jiang, 2020. "Effectual control orientation and innovation performance: clarifying implications in the corporate context," Small Business Economics, Springer, vol. 54(3), pages 865-882, March.
    2. Shepherd, Dean A. & Osofero, Moses & Wincent, Joakim, 2022. "A personal adversity model of justifying the costs of entrepreneurial action: The case of oil thieves in the Niger DELTA," Journal of Business Venturing, Elsevier, vol. 37(1).
    3. Laurent Vilanova & Ivana Vitanova, 2020. "Unwrapping opportunity confidence: how do different types of feasibility beliefs affect venture emergence?," Small Business Economics, Springer, vol. 55(1), pages 215-236, June.
    4. Vuorio, Anna & Torkkeli, Lasse, 2023. "Dynamic managerial capability portfolios in early internationalising firms," International Business Review, Elsevier, vol. 32(1).
    5. Gomes, Leonardo Augusto de Vasconcelos & Facin, Ana Lucia Figueiredo & Salerno, Mario Sergio, 2021. "Managing uncertainty propagation in innovation ecosystems," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    6. Jia, Yibo & Su, Jingqin & Cui, Li & Wu, Lin & Hua Tan, Kim, 2023. "Platform business model innovation in the digitalization era: A “driver-process-result” perspective," Journal of Business Research, Elsevier, vol. 160(C).
    7. Margot Racat & Antonin Ricard & René Mauer, 2024. "Effectuation and causation models: an integrative theoretical framework," Small Business Economics, Springer, vol. 62(3), pages 879-893, March.
    8. Sipos, Norbert & Lukovszki, Lívia & Rideg, András & Vörös, Zsófia, 2023. "A vállalkozói döntéshozatali logikák kognitív megközelítése [Entrepreneurial effectuation through the lens of cognitive processes]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-563.
    9. Mika Gabrielsson & Markus Raatikainen & Saara Julkunen, 2022. "Accelerated Internationalization Among Inexperienced Digital Entrepreneurs: Toward a Holistic Entrepreneurial Decision-Making Model," Management International Review, Springer, vol. 62(2), pages 137-168, April.
    10. Razmdoost, Kamran & Alinaghian, Leila & Linder, Christian, 2020. "New venture formation: A capability configurational approach," Journal of Business Research, Elsevier, vol. 113(C), pages 290-302.
    11. David J. Rapp & Michael Olbrich, 2021. "On predictive entrepreneurial action in uncertain, ill-structured conditions," Review of Managerial Science, Springer, vol. 15(7), pages 1961-1979, October.
    12. Saras D. Sarasvathy, 2021. "The Middle Class of Business: Endurance as a Dependent Variable in Entrepreneurship," Entrepreneurship Theory and Practice, , vol. 45(5), pages 1054-1082, September.
    13. Koller, Sonia & Stephan, Ute & Ahmetoglu, Gorkan, 2022. "Ecological rationality and entrepreneurship: How entrepreneurs fit decision logics to decision content and structure," Journal of Business Venturing, Elsevier, vol. 37(4).
    14. Jiang, Yi Dragon & Straub, Caroline & Klyver, Kim & Mauer, René, 2021. "Unfolding refugee entrepreneurs' opportunity-production process — Patterns and embeddedness," Journal of Business Venturing, Elsevier, vol. 36(5).
    15. 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).
    16. 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).
    17. Peng, Xue Bing & Liu, Yue Ling & Jiao, Qi Qi & Feng, Xiao Bin & Zheng, Bei, 2020. "The nonlinear effect of effectuation and causation on new venture performance: The moderating effect of environmental uncertainty," Journal of Business Research, Elsevier, vol. 117(C), pages 112-123.
    18. Shirokova, Galina & Morris, Michael H. & Laskovaia, Anastasiia & Micelotta, Evelyn, 2021. "Effectuation and causation, firm performance, and the impact of institutions: A multi-country moderation analysis," Journal of Business Research, Elsevier, vol. 129(C), pages 169-182.
    19. Emami, Amir & Yoruk, Esin & Jones, Paul, 2023. "The interplay between market need urgency, entrepreneurial push and pull insights and opportunity confidence in the course of new venture creation in the developing country context," Journal of Business Research, Elsevier, vol. 163(C).
    20. Kurdoglu, Rasim Serdar & Lerner, Daniel & Ates, Nufer Yasin, 2022. "Unsticking the rationality stalemate: Motivated reasoning, reality, and irrationality," Journal of Business Venturing Insights, Elsevier, vol. 18(C).
    21. Dan Long & Houhong Wang & Peili Wang, 2021. "Built to Sustain: The Effect of Entrepreneurial Decision-Making Logic on New Venture Sustainability," Sustainability, MDPI, vol. 13(4), pages 1-20, February.
    22. Kerr, Jon & Coviello, Nicole, 2020. "Weaving network theory into effectuation: A multi-level reconceptualization of effectual dynamics," Journal of Business Venturing, Elsevier, vol. 35(2).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yi Jiang & Charles-Clemens Rüling, 2019. "Opening the Black Box of Effectuation Processes: Characteristics and Dominant Types," Entrepreneurship Theory and Practice, , vol. 43(1), pages 171-202, January.
    2. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    3. Marko Matalamäki & Tero Vuorinen & Elina Varamäki & Kirsti Sorama, 2017. "Business Growth in Established Companies; Roles of Effectuation and Causation," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 25(02), pages 123-148, June.
    4. Evers, Natasha & Andersson, Svante, 2021. "Predictive and effectual decision-making in high-tech international new ventures – A matter of sequential ambidexterity," International Business Review, Elsevier, vol. 30(1).
    5. Yu, Xiaoyu & Tao, Yida & Tao, Xiangming & Xia, Fan & Li, Yajie, 2018. "Managing uncertainty in emerging economies: The interaction effects between causation and effectuation on firm performance," Technological Forecasting and Social Change, Elsevier, vol. 135(C), pages 121-131.
    6. Mumford, Jonathan Van & Zettinig, Peter, 2022. "Co-creation in effectuation processes: A stakeholder perspective on commitment reasoning," Journal of Business Venturing, Elsevier, vol. 37(4).
    7. Igor Laine & Tamara Galkina, 0. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-37.
    8. Tobias Frese & Ingmar Geiger & Florian Dost, 2020. "An empirical investigation of determinants of effectual and causal decision logics in online and high-tech start-up firms," Small Business Economics, Springer, vol. 54(3), pages 641-664, March.
    9. Denis A. Grégoire & Naïma Cherchem, 2020. "A structured literature review and suggestions for future effectuation research," Small Business Economics, Springer, vol. 54(3), pages 621-639, March.
    10. Gry Agnete Alsos & Tommy Høyvarde Clausen & René Mauer & Stuart Read & Saras D. Sarasvathy, 2020. "Effectual exchange: from entrepreneurship to the disciplines and beyond," Small Business Economics, Springer, vol. 54(3), pages 605-619, March.
    11. Richard A. Martina, 2020. "Toward a theory of affordable loss," Small Business Economics, Springer, vol. 54(3), pages 751-774, March.
    12. Igor Laine & Tamara Galkina, 2017. "The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty," International Entrepreneurship and Management Journal, Springer, vol. 13(3), pages 905-941, September.
    13. Stroe, Silvia & Parida, Vinit & Wincent, Joakim, 2018. "Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy," Journal of Business Research, Elsevier, vol. 89(C), pages 265-272.
    14. Sipos, Norbert & Lukovszki, Lívia & Rideg, András & Vörös, Zsófia, 2023. "A vállalkozói döntéshozatali logikák kognitív megközelítése [Entrepreneurial effectuation through the lens of cognitive processes]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 544-563.
    15. Pascal Henninger & Alexander Brem & Ferran Giones & Peter M. Bican & Christine Wimschneider, 2019. "Effectuation Vs. Causation: Can Established Firms Use Start-Up Decision-Making Principles To Stay Innovative?," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 24(01), pages 1-32, January.
    16. Peng, Xue Bing & Liu, Yue Ling & Jiao, Qi Qi & Feng, Xiao Bin & Zheng, Bei, 2020. "The nonlinear effect of effectuation and causation on new venture performance: The moderating effect of environmental uncertainty," Journal of Business Research, Elsevier, vol. 117(C), pages 112-123.
    17. Katrin M. Smolka & Ingrid Verheul & Katrin Burmeister–Lamp & Pursey P.M.A.R. Heugens, 2018. "Get it Together! Synergistic Effects of Causal and Effectual Decision–Making Logics on Venture Performance," Entrepreneurship Theory and Practice, , vol. 42(4), pages 571-604, July.
    18. Stephen X. Zhang & Elco Burg, 2020. "Advancing entrepreneurship as a design science: developing additional design principles for effectuation," Small Business Economics, Springer, vol. 55(3), pages 607-626, October.
    19. Masoud Karami & Ben Wooliscroft & Lisa McNeill, 2020. "Effectuation and internationalisation: a review and agenda for future research," Small Business Economics, Springer, vol. 55(3), pages 777-811, October.
    20. Saras Sarasvathy & K. Kumar & Jeffrey G. York & Suresh Bhagavatula, 2014. "An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities," Entrepreneurship Theory and Practice, , vol. 38(1), pages 71-93, January.

    More about this item

    Keywords

    Unanticipated consequence; Temporality; Perceived uncertainty; Effectuation; Entrepreneurial action; New venture creation process;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    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:eee:jbvent:v:34:y:2019:i:1:p:23-40. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    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.