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    Planning Effectual Growth: A Study of Effectuations and Causation in Nascent Firms

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    2011.03.29 planning effectual growth.pdf (217.5Kb)
    Permanent Link
    http://hdl.handle.net/11603/7410
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    • UBalt Faculty Scholarship
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    Author/Creator
    Kraaijenbrink, Jeroen
    Ratinho, Tiago
    Groen, Aard J.
    Date
    2011
    Type of Work
    12 pages
    Text
    journal articles
    Citation of Original Publication
    Kraaijenbrink, J., Ratinho, T., & Groen, A. J. (2011). Planning Effectual Growth: A Study of Effectuations and Causation in Nascent Firms. Babson College, 1-12.
    Subjects
    entrepreneurship
    effectual growth
    nascent firms
    strategic management
    Abstract
    Two main contrasting approaches are typically used in entrepreneurship literature to explain how new ventures strategize: causal/planned strategies and effectual/emergent strategies. In this study, we explore the use of causal and effectual strategies within micro and small firms. Our results show that bigger 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 bigger. This suggests that causal and effectual mechanism can co-exist and lead to growth. Theoretical and practical implications of these findings are discussed


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    Robert L. Bogomolny Library
    University of Baltimore
    1420 Maryland Ave.
    Baltimore, MD 21201
    Email: knowledgeworks@ubalt.edu


    If you wish to submit a copyright complaint or withdrawal request, please email mdsoar-help@umd.edu.