From tensions to synergy: Causation and effectuation in the process of venture creation

Tamara Galkina*, Irina Atkova, Man Yang

*Corresponding author for this work

Research output: Contribution to journalArticleScientificpeer-review

Abstract

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.
Original languageEnglish
Article number1413
Peer-reviewed scientific journalStrategic Entrepreneurship Journal
Number of pages29
ISSN1932-4391
DOIs
Publication statusPublished - 23.09.2021
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • causation
  • effectuation
  • synergy
  • tensions
  • venture creation

Areas of Strength and Areas of High Potential (AoS and AoHP)

  • AoS: Responsible organising
  • AoHP: Strategic and entrepreneurial praxis

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