Abstract
A predictive approach to entrepreneurship posits that precise planning is essential to entrepreneurial success; others claim a less predictive, action-oriented approach is likely to reduce the time it takes for new firms to emerge. We address this tension using theoretical insights from effectuation, a controversial theory of entrepreneurial action. We develop an empirical model capturing the influence of effectual heuristics and the dynamic cycles of expanding means and converging goals on time to emergence. Our analysis reveals that some heuristics of effectuation have a direct impact on reducing time to emergence; others are mediated through cycles of expanding means and converging goals. This study suggests that scholars need to take a more processual and nuanced approach when examining the impacts of non-predictive strategic choices.
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