Configurations of effectuation, causation, and bricolage: implications for firm growth paths

This study examines how firms’ decision-making logics and entrepreneurial resourcing behaviors combine to create value. We conduct a qualitative comparative analysis investigating configurations of effectuation, causation, and bricolage that are associated with firm performance. We consider firm size and development stage as contextual factors that differentiate the effectiveness of ways in which firms combine effectuation, causation, and bricolage. Using a sample of 305 Chinese firms, we find six solutions explaining entrepreneurial processes in high-performing firms. Based on a comparison of effective configurations across firm size and development stages, we theorize three paths along which small early-stage firms can evolve into large late-stage firms while maintaining high performance.

Journal or Publication:
Small Business Economics Journal
Wenwen An
Charles-Clemens Rüling
Xin Zheng
Jianqi Zhang
Year Published
Relevant Principles:
Affordable Loss
Bird-in-Hand (Means)
Crazy Quilt (Partnerships)
Effectuation Process
Lemonade (Leverage Contingencies)
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