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Understanding Dynamics of Strategic Decision Making in Venture Creation: A Process Study of Effectuation and Causation

Isabelle M.M.J. Reymen¹; Petra Andries^2,3; Hans Berends⁴; René Mauer⁵; Ute Stephan⁶; Elco van Burg⁴

¹ Department of Industrial Engineering and Innovation Sciences Eindhoven University of Technology Eindhoven The Netherlands · ² Faculty of Economics and Business Administration Department of Innovation, Entrepreneurship, and Service Management Ghent University Ghent Belgium · ³ Faculty of Economics and Business Department of Managerial Economics, Strategy and Innovation KU Leuven Leuven Belgium · ⁴ Faculty of Economics and Business Administration VU University Amsterdam Amsterdam The Netherlands · ⁵ ESCP Europe Business School, Entrepreneurship and Innovation Berlin Germany · ⁶ Aston Business School, Economics & Strategy Group Aston University Birmingham United Kingdom

This study draws upon effectuation and causation as examples of planning‐based and flexible decision‐making logics and investigates dynamics in the use of both logics. The study applies a longitudinal process research approach to investigate strategic decision making in new venture creation over time. Combining qualitative and quantitative methods, we analyze 385 decision events across nine technology‐based ventures. Our observations suggest a hybrid perspective on strategic decision making, demonstrating how effectuation and causation logics are combined and how entrepreneurs' emphasis on these logics shifts and re‐shifts over time. We induce a dynamic model that extends the literature on strategic decision making in venture creation. Copyright © 2015 Strategic Management Society.

DOI

10.1002/sej.1201

Volume

9 (4)

Pages

351-379

Language

en

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