Effectuation, Causation and Bricolage; Entrepreneurial Orientation in the Face of Crisis, a Perspective from Developing Countries

Abstract

Abstract While previous studies on individual entrepreneurial orientation have evolved more from environmental, social and cultural features, far less attention has been dedicated to personal agency factors, especially during the crisis period of post COVID-19 pandemic. Relying on personal agency theory and the entrepreneurial cognitive logic concept, this study investigates how entrepreneur’s internal locus of control affect their individual entrepreneurial orientation, particularly during periods of crisis and scarcity-post COVID-19 pandemic. Data were collected from 500 small and medium scale entrepreneurs via an online questionnaire and analyzed using partial least square (PLS-SEM) methodology. The findings show that causation, bricolage and effectuation’s affordable loss and flexibility, which are most responsive to internal locus of control, significantly impact individual entrepreneurial orientation. However, no evidence has been found on how gender, education level and education background impacts the internal locus of control to promote entrepreneurial orientation. Finally, the paper highlights the relevance of considering personal agency factors, namely internal locus of control, for policy makers, especially those involved in institutions of learning and government ministries, to boost citizens perceptions and entrepreneurial orientation and behaviour particularly in developing countries.