Abstract
Although some studies have addressed circumstances under which effectual or causal actions yield better venture performance, until now, there are still unanswered questions about whether entrepreneurs can cognitively recognize when effectual/causal actions are likely to yield better performance and execute them. In this research, we utilize a contingency theory lens to address this question for different levels of product/service disruptiveness. Based on a sample of 200 entrepreneurs in Canada, we study the effect of openness to change and ambition on the ventures’ capability of choosing and fulfilling the best course of action (effectuation vs causation) at different levels of product/service disruptiveness.
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