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How effectual will you be? Development and validation of a scale in higher education

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  • Alicia Martin-Navarro
  • Jose Aurelio Medina-Garrido
  • Felix Velicia-Martin

Abstract

The literature on effectual theory offers validated scales to measure effectual or causal logic in entrepreneurs' decision-making. However, there are no adequate scales to assess in advance the effectual or causal propensity of people with an entrepreneurial intention before the creation of their companies. We aim to determine the validity and reliability of an instrument to measure that propensity by first analysing those works that provide recognised validated scales with which to measure the effectual or causal logic in people who have already started up companies. Then, considering these scales, we designed a scale to evaluate the effectual or causal propensity in people who had not yet started up companies using a sample of 230 final-year business administration students to verify its reliability and validity. The validated scale has theoretical implications for the literature on potential entrepreneurship and entrepreneurial intention and practical implications for promoters of entrepreneurship who need to orient the behaviour of entrepreneurs, entrepreneurs of established businesses who want to implement a specific strategic orientation, entrepreneurs who want to evaluate the effectual propensity of their potential partners and workers, and academic institutions interested in orienting the entrepreneurial potential of their students.

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  • Alicia Martin-Navarro & Jose Aurelio Medina-Garrido & Felix Velicia-Martin, 2023. "How effectual will you be? Development and validation of a scale in higher education," Papers 2312.00916, arXiv.org.
    • Handle: RePEc:arx:papers:2312.00916
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    References listed on IDEAS

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    1. Saras Sarasvathy & Nicholas Dew, 2005. "New market creation through transformation," Journal of Evolutionary Economics, Springer, vol. 15(5), pages 533-565, November.
    2. 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.
    3. 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.
    4. Antonio Rafael Ramos-Rodríguez & José Aurelio Medina-Garrido & José Ruiz-Navarro, 2019. "Why not now? Intended timing in entrepreneurial intentions," International Entrepreneurship and Management Journal, Springer, vol. 15(4), pages 1221-1246, December.
    5. Oosterbeek, Hessel & van Praag, Mirjam & Ijsselstein, Auke, 2010. "The impact of entrepreneurship education on entrepreneurship skills and motivation," European Economic Review, Elsevier, vol. 54(3), pages 442-454, April.
    6. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2008. "Outlines of a behavioral theory of the entrepreneurial firm," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 37-59, April.
    7. Nicholas Dew & Stuart Read & Saras Sarasvathy & Robert Wiltbank, 2011. "On the entrepreneurial genesis of new markets: effectual transformations versus causal search and selection," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 231-253, May.
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