Galkina, T., Atkova, I., & Yang, M. (2022). From tensions to synergy: Causation and effectuation in the process of venture creation. Strategic Entrepreneurship Journal, 16(3), 573–601. https://doi.org/10.1002/sej.1413
From tensions to synergy : causation and effectuation in the process of venture creation
|Author:||Galkina, Tamara1; Atkova, Irina2; Yang, Man3|
1School of Marketing and Communication, University of Vaasa, Vaasa, Finland
2Oulu Business School, University of Oulu, Oulu, Finland
3Department of Management and Organization, Hanken School of Economics, Vaasa, Finland
|Online Access:||PDF Full Text (PDF, 3.8 MB)|
|Persistent link:|| http://urn.fi/urn:nbn:fi-fe2023051243673
John Wiley & Sons,
|Publish Date:|| 2023-05-12
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.
Strategic entrepreneurship journal
|Pages:||573 - 601|
|Type of Publication:||
A1 Journal article – refereed
|Field of Science:||
512 Business and management
© 2021 The Authors. Strategic Entrepreneurship Journal published by John Wiley & Sons Ltd on behalf of Strategic Management Society. This is an open access article under the terms of the Creative Commons Attribution-NonCommercial-NoDerivs License, which permits use and distribution in any medium, provided the original work is properly cited, the use is non-commercial and no modifications or adaptations are made.