Browsing by Subject "effectuation"

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  • Galkina, Tamara (Svenska handelshögskolan, 2013-05-23)
    Despite the wide application of the network approach in Entrepreneurship and International Entrepreneurship, previous research lacks understanding of entrepreneurial networking as a process. Also, existing research views entrepreneurial networks as relatively stable and structured entities that are created in response to the defined resource needs and goals of a new venture. However, non-goal-oriented side of entrepreneurial networking has been neglected. Thus, the ultimate goal of this thesis is to study the intended and unintended aspects of the process of entrepreneurial networking. In this research, unintended entrepreneurial networking is understood through the lens of effectuation theory, which represents a logic of reasoning opposite to causation or a goal driven action based on predictive rationality. The findings from the five essays included into this thesis demonstrate that the process of purposeful creation of entrepreneurial network has three phases – activation of existing contacts, purposeful creation of new contacts, and evolution of entrepreneurial network. Also, entrepreneurial infrastructure influences this process, namely the involvement of formal and informal relations into the network. In addition, the results show that causation and effectuation are constantly intertwined in the process of entrepreneurial networking. The way the entrepreneurs networked, causally or effectually, depends upon the content of establishing a relation, the value of either the quality or quantity of a relation, and entrepreneur’s personality. In the context of internationalization and forming networks in foreign markets, entrepreneurial firms are likely to network effectually due to the conditions of high uncertainty. They are likely to enter foreign markets following their networks instead of these markets determining where and what partners to select. These findings lead to the implications that networking plans do not always work and entrepreneurs need to remain open to unexpected connections. Moreover, in highly uncertain situations they can leverage contingences in order to increase available opportunities. Also, the thesis suggests several implications derived from the comparison of entrepreneurial networking of Russian and Finnish founding teams. For example, it recommends Finnish entrepreneurs expanding their businesses to Russia to use networking services of various organizations, to find a network expert who has local knowledge and connections, and to rely on informal business relations.
  • Galkina, Tamara; Atkova, Irina; Yang, Man (2021-09-23)
    Research Summary This article examines previously neglected tensions between causation and effectuation in the process of new venture creation. We studied 41 episodes of new venture creation by entrepreneurs in Finland and Denmark, who we followed applying the diary method. We reveal tense relations between the respective causation and effectuation principles at multiple levels, and identify the corresponding mechanisms for their resolution, which, in turn, lead to the synergy. This study enriches the effectuation research by offering a dynamic perspective on causation-effectuation interplay and categorizing three modes of their interaction, that is, separation, hybrid synergy, and tensions. Managerial Summary Venture creation is a complex process that involves different decision-making logics. While combining the goal-driven logic of causation and non-goal driven logic of effectuation is essential for the success of a start-up, the road to their synergy can be paved with different tensions. Our study of 41 episodes of new venture creation by entrepreneurs in Finland and Denmark shows that these tensions can occur at the individual, organizational and inter-organizational levels. We also show four different mechanisms of how entrepreneurs can overcome these tensions within their ventures and in relations with other stakeholders.