Effectuation in practice. How is it embedded in innovation-driven start-ups?

Abstract

Effectuation suggests that entrepreneurs decide which goals to pursue based on available means. Instead of following rigid plans and acquiring means as is the case with causation, they get to work immediately with available means and exploit arising opportunities. Various research directions of effectuation are discussed in the literature and this work-in-progress paper focuses on effectual behaviours. Drawing on the extant literature, typical behaviours relate to forming partnerships, exploiting contingencies, using experimentation and defining affordable loss. These behaviours appear to be relevant for innovation-driven entrepreneurs and this work seeks to examine how they are embedded in Swiss start-ups. To gain insights, semi-structured interviews will be conducted with entrepreneurs participating in an innovation competition in Switzerland.