Effectuation and Firm Performance: A Look at Partnership, Education, and Experience, and Their Relation to Firm Survival, Employee Growth and Revenue Level
Year: 2021
Type: dissertation
Abstract: The increased attention toward entrepreneurial research over the last two decades has led to alternative frameworks to explain the behavior of new ventures in their formative years.Effectuation is a framework that has gained traction since its inception in 2001, and has been shown to be used by expert entrepreneurs in Knightian uncertain environments (Sarasvathy, 2001).Effectuation is a set of decision-making principles defined as follows:Given means: Starting with who you are, what you know, and who you know.Strategic Partnerships: Young ventures create strategic partnerships, rather than perform competitive analysis, to help mitigate uncertainty.Affordable loss: Founders only invest that which they can afford to lose.Rather than focus on expected returns and all-or-nothing investments, founders invest that which they are comfortable losing.
Authors: Hale, Michael Mason, 116546
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7065423034