Advanced

Entrepreneurial decision making: examining preferences for causal and effectual reasoning in the new venture creation process

Gabrielsson, Jonas LU and Politis, Diamanto LU (2006)
Abstract
A growing body of studies emphasizes the discovery of opportunities and the decision to exploit them as the essence of entrepreneurial activity. Following this stream of research, we present a study of the influence of entrepreneurs’ career experience and career motives on two alternative modes of decision making logic; causation and effectuation. Causal reasoning is a process that rests on logic of prediction, while effectual reasoning relies on logic of control. Statistical analysis is made on a sample of 291 Swedish individuals involved in new venture creation. The findings suggest that entrepreneurs with prior small business management experience and with a linear or expert career motive have a higher preference for causal decision... (More)
A growing body of studies emphasizes the discovery of opportunities and the decision to exploit them as the essence of entrepreneurial activity. Following this stream of research, we present a study of the influence of entrepreneurs’ career experience and career motives on two alternative modes of decision making logic; causation and effectuation. Causal reasoning is a process that rests on logic of prediction, while effectual reasoning relies on logic of control. Statistical analysis is made on a sample of 291 Swedish individuals involved in new venture creation. The findings suggest that entrepreneurs with prior small business management experience and with a linear or expert career motive have a higher preference for causal decision making logic. Entrepreneurs with prior managerial experience from large firms and with a spiral or transitory career motive have a higher preference for effectual decision making logic. No association was found between prior start-up experience and entrepreneurs’ preferred decision making logic. The overall results give ample support for that entrepreneurs’ career experience and career motives influence entrepreneurial decision making. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
submitted
subject
language
English
LU publication?
yes
id
3d275d2c-9725-4227-a1cc-dc51282c707e (old id 942045)
date added to LUP
2008-01-30 10:15:31
date last changed
2016-04-16 12:36:04
@misc{3d275d2c-9725-4227-a1cc-dc51282c707e,
  abstract     = {A growing body of studies emphasizes the discovery of opportunities and the decision to exploit them as the essence of entrepreneurial activity. Following this stream of research, we present a study of the influence of entrepreneurs’ career experience and career motives on two alternative modes of decision making logic; causation and effectuation. Causal reasoning is a process that rests on logic of prediction, while effectual reasoning relies on logic of control. Statistical analysis is made on a sample of 291 Swedish individuals involved in new venture creation. The findings suggest that entrepreneurs with prior small business management experience and with a linear or expert career motive have a higher preference for causal decision making logic. Entrepreneurs with prior managerial experience from large firms and with a spiral or transitory career motive have a higher preference for effectual decision making logic. No association was found between prior start-up experience and entrepreneurs’ preferred decision making logic. The overall results give ample support for that entrepreneurs’ career experience and career motives influence entrepreneurial decision making.},
  author       = {Gabrielsson, Jonas and Politis, Diamanto},
  language     = {eng},
  note         = {Working Paper},
  title        = {Entrepreneurial decision making: examining preferences for causal and effectual reasoning in the new venture creation process},
  year         = {2006},
}