Action's place in the venture creation process

This study examined the effect that venture creation action has on the outcomes of nascent entrepreneurship. A conceptual model was developed which proposes action as a fundamental mechanism in venture creation. Thus, action should rightly be considered as a means which transmits the effects of venture resource endowments on to venture creation outcomes. This conceptual model was empirically supported in a random sample of nascent ventures. Ventures with higher levels of human or social capital were found to be more active in venture creation. In turn, more active venture attempts were more likely to achieve improved venture creation outcomes. Further, human and social capital, on their own, exhibit little direct influence on the venture outcomes achieved. These findings confirm action’s central place in the venture creation process

Chapter 13 The Nature of the Entrepreneurial Process: Causation, Effectuation, and Pragmatism

This chapter is an appreciation of and a critical reflection on Sarasvathy's work on the causation and effectuation models of entrepreneurship. While Sarasvathy has made significant contributions to the field, it is suggested that more fruitful results can be achieved if two modifications are made. First, it is argued that the six dimensions on which the two models differ are independent and therefore it is more fruitful to focus on the dimensions rather than on the two models. Second, it is argued that a pragmatic view of entrepreneurship is most fruitful when it is not applied at the level of the entrepreneurial process, but at the level of underlying human actions

Entrepreneurs, effectual logic and over-trust

This article complements extant literature on entrepreneurship and trust by proposing a model of over-trust (the tendency to trust more than what is warranted) using entrepreneurial characteristics and effectual logic. We trace how entrepreneurs following effectual processes may tend to over-trust. More formally, we propose that specific personality characteristics of the entrepreneur interact with effectual logic to make the entrepreneur more susceptible to over-trust. The proposed model is value neutral in that we do not imply that over-trust has negative consequences for entrepreneurs. In fact, it may be part of the overall risk that entrepreneurs assume in a new venture creation