Does Effectuation Theory Explain the Startup Behaviors of Entrepreneurs in Pakistan?

Abstract

The very purpose of the study was to explore and confirm if the startups in Pakistan take the path of effectuation or causation according to the effectuation theory contributed by Sarasvathy. The qualitative survey design was used to interview fifteen (15) entrepreneurs from Lahore and Rahim Yar Khan. The interview guide was developed to interview the entrepreneurs. Interviews were then content analyzed to extract themes using the methods suggested in the literature. Findings of the study have supported that the startups in Pakistan take the path of effectuation rather than causation as almost all principles of effectuation were found implemented in all startups considered for the study. The study is the original contribution in terms of supplying empirical evidence for the principles of effectuation in the context of Pakistan. The study has been conducted only in the context of two cities with a limited number of entrepreneurs which limits its findings. Limitations of the study offer opportunity for future research with a broad-based sample. The study offers useful insights to both potential startups and policymakers. Keywords: Effectuation theory, Causation, Entrepreneurship