Entrepreneurial behaviour revisited: Linking self-efficacy with effectuation

Abstract

Entrepreneurial behaviour is increasingly becoming a major area of research. The literature review on entrepreneurial behaviour in this article suggests that entrepreneurial self-efficacy and effectuation are important research streams and that linkages between them can provide valuable insights. To build understanding on the matter, this article examines the antecedents of entrepreneurial self-efficacy such as performance accomplishments, vicarious experience, means and entrepreneurial experience. Further, the article assesses effectual behaviours such as forming partnerships, exploiting contingencies, addressing affordable loss and using experimentation. A conceptual model is constructed in order to illustrate relationships between these two research streams. The model demonstrates the impact of the antecedents of entrepreneurial self-efficacy as well as the impact of entrepreneurial self-efficacy on effectual behaviours. Especially the latter impact has not received much attention in the literature so far. Based on this discussion, research propositions are derived to inform further research.