Skip to main content
Log in

Exploring the role of original aspiration in effectuation tendency

  • Published:
International Entrepreneurship and Management Journal Aims and scope Submit manuscript

Abstract

In this research, we tackle a critical yet less explored factor that affects entrepreneurs’ effectuation logic, the original aspiration, which refers to the entrepreneur’s initial and most dominant aspiration in the venture-creation process. Based on a qualitative and process research on abundant entrepreneurs’ decision events from eight start-ups over a three-year time span, we discover the nature of original aspiration and its significant role on entrepreneurial decision-making over the entrepreneurial process. Subsequently, we identify three categories of original aspirations, social-centric, commercial-centric, and autonomy-centric, and offer evidence that those social-centric entrepreneurs have a high tendency to engage with effectuation logic, while commercial-centric entrepreneurs tend to use more causal logic. These findings extend effectuation theory by advancing one of its most fundamental suppositions and showing how original aspirations shape the thinking behind the critical decisions along the entrepreneurial journey. Overall, our research endeavor highlights that a deeper understanding of the heterogeneity of entrepreneurs broadens the knowledge of entrepreneurship research.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Alsos, G. A., Hytti, U., & Solvoll, S. (2016). Entrepreneurs’ social identity and the preference of causal and effectual behaviours in start-up processes. Entrepreneurship & Regional Development, 28, 234–258.

    Article  Google Scholar 

  • Alvord, S. H., Brown, L. D., & Letts, C. W. (2004). Social entrepreneurship and social transformation. The Journal of Applied Behavioral Science, 40(3), 260–282.

    Article  Google Scholar 

  • Arend, R. J., Sarooghi, H., & Burkemper, A. (2015). Effectuation as ineffectual? Applying the 3E theory-assessment framework to a proposed new theory of entrepreneurship. Academy of Management Review, 40(4), 630–651.

  • Atkinson, J. W. (1957). Motivational determinants of risk-taking behavior. Psychological Review, 64, 359–372.

    Article  Google Scholar 

  • Atkinson, J. W. (1964). An introduction to motivation. New York: Van Nostrand.

    Google Scholar 

  • Austin, J., Stevenson, H., & Wei-Skillern, J. (2012). Social and commercial entrepreneurship: Same, different, or both? Entrepreneurship & Regional Development, 47(3), 370–384.

    Google Scholar 

  • Bagozzi, R. P., & Dholakia, U. (1999). Goal setting and goal striving in consumer behavior. Journal of Marketing, 63, 19–32.

    Article  Google Scholar 

  • Baron, R. A. (1998). Cognitive mechanisms in entrepreneurship: Why and when entrepreneurs think differently than other people. Journal of Business Venturing, 13(4), 275–294.

    Article  Google Scholar 

  • Baum, J. B., & Locke, E. A. (2004). The relationship of entrepreneurial traits, skills, and motivation to subsequent venture growth. Journal of Applied Psychology, 89(4), 587–598.

    Article  Google Scholar 

  • Berends, H., Jelinek, M., Reyman, I., & Stultiens, R. (2014). Product innovation processes in small firms: Combining entrepreneurial effectuation and managerial causation. Journal of Product Innovation Management, 31(3), 616–635.

    Article  Google Scholar 

  • Birley, S., & Westhead, P. (1994). A taxonomy of business start-up reasons and their impact on firm growth and size. Journal of Business Venturing, 9, 7–31.

    Article  Google Scholar 

  • Cardon, M. S., Zietsma, C., Saparito, P., Matheme, B., & Davis, C. (2005). A tale of passion: New insights into entrepreneurship from a parenthood metaphor. Journal of Business Venturing, 20(1), 23–45.

    Article  Google Scholar 

  • Carsrud, A., & Brannback, M. (2011). Entrepreneurial motivations: What do we still need to know? Journal of Small Business Management, 49(1), 9–26.

    Article  Google Scholar 

  • Carsrud, A., Brannback, M., Elfving, J., & Brandt, K. (2017). Motivations: The entrepreneurial mind and behavior. Revisiting The Entrepreneurial Mind, Springer, Ch13, 185–209.

    Article  Google Scholar 

  • Carter, N. M., Gartner, W. B., Shaver, K. G., & Gatewood, E. J. (2003). The career reasons of nascent entrepreneurs. Journal of Business Venturing, 18, 13–39.

    Article  Google Scholar 

  • Chandler, G. N., DeTienne, D. R., McKelvie, A., & Mumford, T. V. (2011). Causation and effectuation processes: A validation study. Journal of Business Venturing, 26(3), 375–390.

    Article  Google Scholar 

  • Choi, Y. R., & Shepherd, D. A. (2004). Entrepreneurs’ decisions to exploit opportunities. Journal of Management, 30(3), 378–395.

    Article  Google Scholar 

  • Dacin, M. T., Dacin, P. A., & Tracey, P. (2011). Social entrepreneurship: A critique and future direction. Organization Science, 22(5), 1203–1213.

    Article  Google Scholar 

  • Davidsson, P., & Honig, B. (2003). The role of social and human capital among nascent entrepreneurs. Journal of Business Venturing, 18(3), 301–331.

    Google Scholar 

  • DeTienne, D. R., & Chandler, G. N. (2010). The impact of motivation and causation and effectuation approaches on exit strategy. Frontiers of Entrepreneurship Research, 30(1), 1–13.

    Google Scholar 

  • DeTienne, D. R., Shepherd, D. A., & DeCastro, J. O. (2008). The fallacy of “only the strong survive”: The effects of extrinsic motivation on the persistence decisions for under-performing firms. Journal of business. Venturing, 23(5), 528–546.

    Article  Google Scholar 

  • DeTienne, D. R., McKelvie, A., & Chandler, G. N. (2015). Making sense of entrepreneurial exit strategies: A typology and test. Journal of Business Venturing, 30, 255–272.

    Article  Google Scholar 

  • Dew, N., Read, S., Sarasvathy, S. D., & Wiltbank, R. (2009). Effectual versus predictive logics in entrepreneurial decision-making: Differences between experts and novices. Journal of Business Venturing, 24, 287–309.

    Article  Google Scholar 

  • Dunkelberg, W., Moore, C., Scott, J., & Stull, W. (2013). Do entrepreneurial goals matter? Resource allocation in new owner-managed firms, Journal of Business Venturing, 28, 225–240.

    Google Scholar 

  • Eisenhardt, K. M. (1989). Building theories from case study research. The Academy of Management Review, 14(4), 532–550.

    Google Scholar 

  • Eisenhardt, K. M., & Graebner, M. E. (2007). Theory building from cases: Opportunities and challenges. Academy of Management Journal, 50(1), 25–32.

    Article  Google Scholar 

  • Engel, Y., Dimitrova, N. G., Khapova, S. N., & Elfring, T. (2014). Uncertain but able: Entrepreneurial self-efficacy and novices’ use of expert decision-logic under uncertainty. Journal of Business Venturing Insights, 1, 12–17.

    Article  Google Scholar 

  • Engel, Y., Burg, E., Kleijn, E., & Khapova, S. N. (2017). Past career in future thinking: How career management practices shape entrepreneurial thinking. Strategic Entrepreneurship Journal, 11(2), 122–144.

    Article  Google Scholar 

  • Fayolle, A. (2013). Personal views on the future of entrepreneurship education. Entrepreneurship & Regional Development, 25, 692–701.

    Article  Google Scholar 

  • Garud, R., & Gehman, J. (2016). Theory evaluation, entrepreneurial processes, and performativity. Academy of Management Review, 41(3), 544–549.

    Article  Google Scholar 

  • Golden, B. R. (1992). The past is the past--or is it? The use of retrospective accounts as indicators of past strategy. Academy of Management Journal, 35(4), 848–860.

    Google Scholar 

  • Gupta, K. V., Chiles, H. T., & McMullen, S. J. (2016). A process perspective on evaluating and con- ducting effectual entrepreneurship research. Academy of Management Review, 41(3), 540–544.

    Article  Google Scholar 

  • Harms, R., & Schiele, H. (2012). Antecedents and consequences of effectuation and causation in the international new venture creation process. Journal of International Entrepreneurship, 10(2), 95–116.

    Article  Google Scholar 

  • Haynie, J. M., Shepherd, D. A., & McMullen, J. S. (2009). An opportunity for me? The role of resources in opportunity evaluation decisions. Journal of Management Studies, 46(3), 337–361.

    Article  Google Scholar 

  • Jiang, Y., & Rüling, C.-C. (2019). Opening the black box of effectuation processes: Characteristics and dominant types. Entrepreneurship Theory and Practice., 43(1), 171–202.

    Article  Google Scholar 

  • Johansson, A., & McKelvie, A. (2012). Unpacking the antecedents of effectuation and causation in a corporate context. Frontiers of Entrepreneurship Research, 32(17), 1–15.

    Google Scholar 

  • Laine, I., & Galkina, T. (2017). The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty. International Entrepreneurship and Management Journal, 13, 905–941.

    Article  Google Scholar 

  • Langley, A. (1999). Strategies for theorizing from process data. Academy of Management Review, 24(4), 691–710.

    Article  Google Scholar 

  • McClelland, D. C. (1961). The achieving society. Princeton: Van Nostrand.

    Book  Google Scholar 

  • Murneiks, C. Y., Mosakowski, E., & Cardon, M. S. (2014). Pathways of passion: Identity centrality, passion, and behavior among entrepreneurs. Journal of Management, 40(6), 1583–1606.

    Article  Google Scholar 

  • Perry, J. T., Chandler, G. N., & Markova, G. (2012). Entrepreneurial effectuation: A review and suggestions for future research. Entrepreneurship: Theory and Practice, 36(4), 837–861.

    Google Scholar 

  • Read, S., & Sarasvathy, S. D. (2005). Knowing what to do and doing what you know: Effectuation as a form of entrepreneurial expertise. Journal of Private Equity, 9, 45–62.

    Article  Google Scholar 

  • Read, S., Dew, N., Sarasvathy, S. D., Song, M., & Wiltbank, R. (2009). Marketing under uncertainty: The logic of an effectual approach. Journal of Marketing, 73(3), 1–18.

    Article  Google Scholar 

  • Read, S., Sarasvathy, S. D., Dew, N., & Wiltbank, R. (2016). Response to Arend, Sarooghi, and Burkemper (2015): Co-creating effectual entrepreneurship research. Academy of Management Review, 41(3), 528–536.

    Article  Google Scholar 

  • Reymen, I., Andries, P., Berends, H., Mauer, R., Stephan, U., & van Burg, E. (2015). Understanding dynamics of strategic decision making in venture creation: A process study of effectuation and causation. Strategic Entrepreneurship Journal, 9(4), 351–379.

    Article  Google Scholar 

  • Reynolds, P. D., Bygrave, W. D., Autio, E., Cox, L., & Hay, M. (2002). Global Entrepreneurship Monitor: 2002, Executive Report. Kansas City, MO: Kauffman Center for Entrepreneurial Leadership.

    Google Scholar 

  • Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 243–263.

    Article  Google Scholar 

  • Sarasvathy, S. D. (2003). Entrepreneurship as a science of the artificial. Journal of Economic Psychology, 24, 203–220.

    Article  Google Scholar 

  • Sarasvathy, S. D. (2008). Effectuation: elements of entrepreneurial expertise. Sciences New York (Vol. 2010). Cheltenham: Edward Elgar Publishing.

    Book  Google Scholar 

  • Sarasvathy, S. D., & Dew, N. (2005). Entrepreneurial logics for a technology of foolishness. Scandinavian Journal of Management, 21, 385–406.

    Article  Google Scholar 

  • Sarasvathy, S., & Dew, N. (2008). Effectuation and over-trust: Debating Goel and Karri. Entrepreneurship Theory and Practice, 32, 727–737.

    Article  Google Scholar 

  • Sarasvathy, S. D., & Venkataraman, S. (2011). Entrepreneurship as method: open questions for an entrepreneurial future. Entrepreneurship Theory and Practice, 35(1), 113–135.

    Article  Google Scholar 

  • Shane, S., Locke, E. A., & Collins, C. J. (2003). Entrepreneurial motivation. Human Resource Management Review, 13, 257–279.

    Article  Google Scholar 

  • Shepherd, D.A., & Patzelt, H. (2017). Researching entrepreneurial decision making trailblazing in entrepreneurship (pp. 257-285): Springer.

  • Shepherd, D. A., Williams, T. A., & Patzelt, H. (2014). Thinking about entrepreneurial decision making: Review and research agenda. Journal of Management, 41(1), 1–36.

    Google Scholar 

  • Simon, H. A. (1959). Theories of decision making in economics and behavioral science. American Economic Review, 49(3), 253–283.

    Google Scholar 

  • Sitoh, M. K., Pan, S. L., & Yu, C. Y. (2014). Business models and tactics in new product creation: The interplay of effectuation and causation processes. IEEE Transactions on Engineering Management, 61, 213–224.

    Article  Google Scholar 

  • Smolka, K. M., Verheul, I., Burmeister-Lamp, K., & Heugens, P. P. M. A. R. (2016). Get it together! Synergistic effects of causal and effectual decision-making logics on venture performance. Entrepreneurship Theory and Practice, 40, 1–34.

    Google Scholar 

  • Stroe, S., Parida, V., & Wincent, J. (2018). Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy. Journal of Business Research., 89, 265–272.

    Article  Google Scholar 

  • Tan, W., Williams, J., & Tan, T. (2005). Defining the ‘social’ in ‘social entrepreneurship’: Altruism and entrepreneurship. International Entrepreneurship and Management Journal, 353–365.

  • Tseng, E. W. K. (1998). Can guanxi be a source of sustained competitive advantage for doing business in China? Academy of Management Executive, 12(2), 64–73.

    Google Scholar 

  • VanSandt, C. V., Sud, M., & Marme, C. (2009). Enabling the original intent: Catalysts for social entrepreneurship. Journal of Business Ethics, 90, 419–428.

    Article  Google Scholar 

  • Villani, E., Linder, C., & Grimaldi, R. (2018). Effectuation and causation in science-based new venture creation: A configurational approach. Journal of Business Research, 83, 173–185.

    Article  Google Scholar 

  • Welter, C., Mauer, R., & Wuebker, R. J. (2016). Bridging behavioral models and theoretical concepts: Effectuation and bricolage in the opportunity creation framework. Strategic Entrepreneurship Journal, 10(1), 5–20.

    Article  Google Scholar 

  • Wennberg, K., Wiklund, J., DeTienne, D. R., & Cardon, M. S. (2010). Reconceptualizing entrepreneurial exit: Divergent exit routes and their drivers. Journal of Business Venturing, 25, 361–375.

    Article  Google Scholar 

  • Wiltbank, R., Dew, N., Read, S., & Sarasvathy, S. D. (2006). What to do next? The case for non-predictive strategy. Strategic Management Journal, 27(10), 981–998.

    Article  Google Scholar 

  • Yin, R. K. (2009). Case study research: Design and methods (4th ed.). Thousand Oaks: SAGE Publications, Inc..

    Google Scholar 

  • York, J. G., O'Neil, I., & Sarasvathy, S. D. (2016). Exploring environmental entrepreneurship: Identity coupling, venture goals, and stakeholder incentives. Journal of Management Studies, 53(5), 695–737.

    Article  Google Scholar 

  • Zhao, H., Seibert, S. E., & Lumpkin, G. T. (2010). The relationship of personality to entrepreneurial intentions and performance: A meta-analytic review. Journal of Management, 36(2), 381–404.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Yu-Te Liu.

Additional information

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Liu, YT. Exploring the role of original aspiration in effectuation tendency. Int Entrep Manag J 15, 977–1016 (2019). https://doi.org/10.1007/s11365-019-00575-8

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11365-019-00575-8

Keywords

Navigation