Abstract
Effectuation is developed as a theory about how expert entrepreneurs make decisions in situations characterized with uncertainty. While the theory has gained prominence, the relationship between expertise and effectuation or causation has yet not been subject of critical examination. This paper addresses this gap by examining relationships between expertise and adoption of effectual and causal approaches during new venture start-up processes. We distinguish between experience and expertise, as well as between entrepreneurial and other types of business related experience/expertise. We find that while entrepreneurial expertise is related to effectuation, entrepreneurial experience is not, indicating that not all experienced entrepreneurs adopt expert behaviors. Further, work/management experience in general and expertise within an industry domain are related to a causal approach in new business start-up processes. The results give important insights to the role of experience and expertise for entrepreneurial behavior, and bring nuances to theorizing on expertise and effectuation.
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