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The ramifications of effectuation on biases in entrepreneurship – Evidence from a mixed-method approach

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  • Zhang, Stephen X.
  • Foo, Maw-Der
  • Vassolo, Roberto S.

Abstract

The disconnect between the effectuation literature and the cognitive bias research creates artificial boundaries to inhibit the development of a more integrated understanding of decision-making in entrepreneurship. We analyze the effect of effectuation vis a vis on the biases of overconfidence and illusion of control. We test the effect in both a field survey with entrepreneurs and an experiment. Unraveling the patterns of relationships between effectuation and biases helps ground the burgeoning effectuation theory to more established cognitive science theories and advance the scholarly understanding of entrepreneurial decision-making.

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  • Zhang, Stephen X. & Foo, Maw-Der & Vassolo, Roberto S., 2021. "The ramifications of effectuation on biases in entrepreneurship – Evidence from a mixed-method approach," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    • Handle: RePEc:eee:jobuve:v:15:y:2021:i:c:s2352673421000160
    DOI: 10.1016/j.jbvi.2021.e00238
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    Cited by:

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    4. Lang, Le Dang & Tiwari, Aviral Kumar & Hieu, Hoang Ngoc & Ha, Nguyen Minh & Gaur, Jighyasu, 2023. "The role of structural social capital in driving social-oriented sustainable agricultural entrepreneurship," Energy Economics, Elsevier, vol. 124(C).
    5. Cowden, Birton & Karami, Masoud & Tang, Jintong & Ye, Wenping & Adomako, Samuel, 2023. "The gendered effects of effectuation," Journal of Business Research, Elsevier, vol. 155(PB).
    6. Welter, Chris & Scrimpshire, Alex, 2021. "The missing capital: The case for psychological capital in entrepreneurship research," Journal of Business Venturing Insights, Elsevier, vol. 16(C).

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