The synergy of causation and effectuation in the process of entrepreneurial networking: Implications for opportunity development

Tamara Galkina,Sarah Jack

doi:10.1177/02662426211045290

Abstract

The resource-based view of entrepreneurial networking demonstrates how relationships are formed instrumentally through the goal-driven decision-making of causation. At the same time, evidence shows that under conditions of uncertainty, entrepreneur networking follows the non-predictive decision-making of effectuation. However, little is known about how entrepreneurs combine these two logics, that is, causation and effectuation, for opportunity development. This study identifies four hybrid combinations of causal and effectual networking behaviour. The outcome of this hybrid networking is a synergistic effect on opportunity development. This article contributes to the entrepreneurial effectuation research, analyses of entrepreneurial networking and the literature on entrepreneurial opportunity.

Highlights

Entrepreneurial networking is recognised as a powerful behavioural mechanism for opportunity development (Ardichvili et al, 2003; Jack et al, 2010; Zheng et al, 2020)
We identified another mixed behaviour, where networking comprised the aspects of both causation and effectuation simultaneously
It is important that we understand this hybridity; earlier research has acknowledged the need for both types of networking in venture creation and opportunity development (Prashantham et al, 2018), but not depicted how they are combined

Summary

Introduction

Entrepreneurial networking is recognised as a powerful behavioural mechanism for opportunity development (Ardichvili et al, 2003; Jack et al, 2010; Zheng et al, 2020). Relationship formation is defined by certain venture resource needs, and follows goaloriented causal decision-making From this perspective, entrepreneurs establish connections in a deterministic, instrumental and deliberate way because they are driven by their venture’s strategic goals (Stuart and Sorenson, 2007). Entrepreneurial networking is largely non-predictive and enacted through effectual logic as opposed to causal decision-making (Engel et al, 2017; Kerr and Coviello, 2019a; Kerr and Coviello, 2019b; Sarasvathy, 2001) Under these conditions, network opportunities are vague as there are no clear goals in terms of accessing and acquiring certain resources from relationships (Sarasvathy and Dew, 2003; Sarasvathy and Dew, 2005; Sawyerr et al, 2003).

Methods

Results

Discussion

Conclusion