Effectuation and its implications for socio-technical design science research in information systems

We study the implications of the effectuation concept for socio-technical artifact design as part of the design science research (DSR) process in information systems (IS). Effectuation logic is the opposite of causal logic. Ef-fectuation does not focus on causes to achieve a particular effect, but on the possibilities that can be achieved with extant means and resources. Viewing so-cio-technical IS DSR through an effectuation lens highlights the possibility to design the future even without set goals. We suggest that effectuation may be a useful perspective for design in dynamic social contexts leading to a more dif-ferentiated view on the instantiation of mid-range artifacts for specific local ap-plication contexts. Design science researchers can draw on this paper’s conclu-sions to view their DSR projects through a fresh lens and to reexamine their re-search design and execution. The paper also offers avenues for future research to develop more concrete application possibilities of effectuation in socio-technical IS DSR and, thus, enrich the discourse

Planning effectual growth: a study of effectuations and causation in nascent firms

Two main contrasting approaches are used in the entrepreneurship literature to explain how new ventures strategize: causal/planned strategies and effectual/emergent strategies. In this study, we explore the use of these strategies within micro and small firms. Our results show that larger companies typically used more planned strategies while simultaneously relying on effectual mechanisms. We observe that companies operating in known markets, anchoring their business ideas on experience and having a strong growth intention grow larger. This suggests that causal and effectual mechanisms can co-exist and lead to growth when combined. Theoretical and practical implications of these findings are discussed

Decision Taking for Selling Thread Startup

Decision Taking is discussed in the context of the role it may play for a selling agent in a search market, in particular for agents involved in the sale of valuable and relatively unique items, such as a dwelling, a second hand car, or a second hand recreational vessel. Detailed connections are made between the architecture of decision making processes and a sample of software technology based concepts including instruction sequences, multi-threading, and thread algebra. Ample attention is paid to the initialization or startup of a thread dedicated to achieving a given objective, and to corresponding decision taking. As an application, the selling of an item is taken as an objective to be achieved by running a thread that was designed for that purpose

Entrepreneurial discovery and exploitation processes: sequence or symbiosis?

This study examined the effect that temporal order within the entrepreneurial discovery-exploitation process has on the outcomes of venture creation. Consistent with sequential theories of discovery-exploitation, the general flow of venture creation was found to be directed from discovery toward exploitation in a random sample of nascent ventures. However, venture creation attempts which specifically follow this sequence derive poor outcomes. Moreover, simultaneous discovery-exploitation was the most prevalent temporal order observed, and venture attempts that proceed in this manner more likely become operational. These findings suggest that venture creation is a multi-scale phenomenon that is at once directional in time, and simultaneously driven by symbiotically coupled discovery and exploitation

Antecedents and consequences of effectuation and causation in the international new venture creation process

The selection of the entry mode in an international market is of key importance for the venture. A process-based perspective on entry mode selection can add to the International Business and International Entrepreneurship literature. Framing the international market entry as an entrepreneurial process, this paper analyzes the antecedents and consequences of causation and effectuation in the entry mode selection. For the analysis, regression-based techniques were used on a sample of 65 gazelles. The results indicate that experienced entrepreneurs tend to apply effectuation rather than causation, while uncertainty does not have a systematic influence. Entrepreneurs using causation-based international new venture creation processes tend to engage in export-type entry modes, while effectuation-based international new venture creation processes do not predetermine the entry mod

Creating New Ventures: A review and research agenda

Creating new ventures is one of the most central topics to entrepreneurship and is a critical step from which many theories of management, organizational behavior, and strategic management build. Therefore, this review and proposed research agenda is not only relevant to entrepreneurship scholars but also other management scholars who wish to challenge some of the implicit assumptions of their current streams of research and extend the boundaries of their current theories to earlier in the organization’s life. Given that the last systematic review of the topic was published 16 years ago, and that the topic has evolved rapidly over this time, an overview and research outlook are long overdue. From our review, we inductively generated ten sub-topics: (1) Lead founder, (2) Founding team, (3) Social relationships, (4) Cognitions, (5) Emergent organizing, (6) New venture strategy, (7) Organizational emergence, (8) New venture legitimacy, (9) Founder exit, and (10) Entrepreneurial environment. These sub-topics are then organized into three major stages of the entrepreneurial process—co-creating, organizing, and performing. Together, the framework provides a cohesive story of the past and a road map for future research on creating new ventures, focusing on the links connecting these sub-topics