Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy

Abstract

This paper enriches the literature on entrepreneurial decision-making logic by investigating nascent entrepreneurs' use of effectuation and causation. The configurational effect of passion, entrepreneurial self-efficacy, and risk perception is tested for causal and effectual decision-making. The results, based on data gathered from 50 nascent entrepreneurs, show that, more than passion, entrepreneurial self-efficacy, and risk perception alone, it is their combination that leads to the use of a causal and an effectual logic. This fsQCA-based study thereby helps unravel some of the complexities behind entrepreneurs' choice of decision-making logic.