|
Abstract:
|
In this exploratory thesis, we seek to expand upon current effectuation literature by analyzing qualitative
interviews of a sample of nine novice entrepreneurs. We center the interviews on recent strategic
challenges, and, through a coding scheme invented for the purpose, analyze the entrepreneurs’ underlying
logic of dealing with uncertainty in strategic decision-making processes.
Within the relatively new field of entrepreneurship research, the theory of effectuation puts forth a ‘logic
of experts’ for entrepreneurs in dealing with the uncertainty of early-stage entrepreneurship (Sarasvathy,
2001). We argue that this uncertainty is not risk, as traditional management literature views it, but, in fact,
Knightian uncertainty (unknown unknowns). With effectual logic, it is suggested that novice entrepreneurs
use causal logic while expert entrepreneurs use effectual logic.
Our analysis resulted in the unexpected findings of effectual logic use among all novices in the sample, even
to a higher extent than the expert entrepreneurs from Sarasvathy original effectuation literature. The
implications of these findings for future effectuation research are discussed by looking at the interpretation
of early wins, pattern-recognition and potential business education bias of the sample. We discuss these
implications and suggest further effectuation research, specifically exploring the novice entrepreneurs’
educational background, decision-making logic and interpretation in early-stage entrepreneurial decision-making. |
