Do Effectuation Processes Shape the Relationship Between Product Diversification and Performance in New Ventures?


This study applies the lens of effectuation to product diversification and examines the moderating effects of effectuation processes on the relationship between diversification and performance in new ventures. Effectuation processes are conceptualized in terms of experimentation, affordable loss, flexibility, and pre-commitments. The findings indicate that, with the exception of affordable loss, effectuation processes exert a positive effect on the diversification–performance relationship. Theoretical and empirical implications are discussed.

Journal or Publication:
Entrepreneurship Theory and Practice
Authors:
Ioanna Deligianni
Irini Voudouris
LIOUKAS SPYROS
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Status:
publish
Year Published
2015
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