Title: What predicts effectuation preferences? Disentangling individual and environmental factors and illuminating decision criteria

Authors: Sylvia Hubner-Benz; Matthias Baum

Addresses: Faculty of Economics and Management, Free University of Bozen-Bolzano, 39100 Bolzano BZ, Italy ' Institute for Entrepreneurship and Innovation, Chair BWL XVI – Entrepreneurship and Digital Business Models, University of Bayreuth, 95447 Bayreuth, Germany

Abstract: Effectuation, a logic for entrepreneurial decision-making, has been suggested to be predominantly used by entrepreneurs and specifically appropriate in entrepreneurial environments. This study challenges previous assumptions in effectuation literature by exploring whether it is the: a) entrepreneurial experience or b) entrepreneurial environment that determines individuals' preferences for effectuation over causation. Our experimental vignette study suggests that being in an entrepreneurial environment but not the decision-makers' entrepreneurial experience predicts a preference for effectuation. In an additional qualitative analysis, we investigate which decision criteria drive these results. Moreover, we discuss our exploratory finding that more women than men seem to prefer effectuation. We elaborate on the implications of our findings for effectuation research and practice.

Keywords: effectuation; decision-making; entrepreneurial expertise; entrepreneurial environment; gender; experimental design; vignettes.

DOI: 10.1504/IJEV.2023.129283

International Journal of Entrepreneurial Venturing, 2023 Vol.15 No.1, pp.91 - 118

Accepted: 09 May 2022
Published online: 02 Mar 2023 *