Synergizing causation and effectuation for innovation in Chinese new ventures

Abstract

Innovation often involves high uncertainty, making it difficult for a single entrepreneurial decision-making logic to navigate effectively. Grounded in resource orchestration theory, we advance the discussion on entrepreneurial decision-making logics by examining the interplay between causation and effectuation, and their interactive impacts on innovation within new ventures. Using a multi-wave survey of 404 founding team members from 91 new ventures, we find that new venture innovation is enhanced by the synergy of causation and effectuation. Furthermore, the boundary-spanning behavior of founding teams mediates the relationship between the synergy and new venture innovation, and founding team trust positively moderates this mediated relationship. These insights contribute to understanding the entrepreneurial decision-making logics and strategic behaviors of founding teams as they pursue innovation.

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