Effectuation or Causation? Configurational Causes of Entrepreneurial Logic

Abstract

More entrepreneurs are increasingly interested in such a way of “crossing the river by feeling the stones” to realize rapid iteration of enterprises. In this study, we explored simultaneously impacts of entrepreneurial experience, environmental uncertainty, organizational slack and centralization of desicion making on entrepreneurial logic. To do so, we then use clear-set approach to qualitative comparative analysis (csQCA) to compare the different configurations affecting effectuation and causation under an integrated perspective. Our findings suggest that entrepreneurs preferred to use causation logic for decision-making while the level of environmental uncertainty is low. Whereas, when the environmental uncertainty is higher, entrepreneurial experience, organizational slack and decision concentration become the decisive factors for entrepreneurial logic. As such, this study offers novel theoretical and empirical insights to scholars as well as implications for practitioners.