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Do strategy choices matter for nascent firms? Effectuation in the early stages of venture creation

Garonne, Christophe & Davidsson, Per (2010) Do strategy choices matter for nascent firms? Effectuation in the early stages of venture creation. In 2010 Academy of Management Annual Meeting Proceedings, Academy of Management, Montréal Convention Center, Montreal.

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Abstract

This paper explores empirically effects of Effectuation on nascent firms’ performance. Three potential outcomes for nascent firms using different levels of effectuation and causation are investigated. Innovation, a measure of venture sophistication was introduced as a moderator. We examine a longitudinal random sample of 625 nascent firms collected over two years in Australia and provide support for our hypotheses. Results show that in situation of high uncertainty, nascent firms using effectuation are more likely to reach operational stage than their counterpart using causation.

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ID Code: 39692
Item Type: Conference Paper
Keywords: Effectuation, Nascent Firms, Innovation, Performance
Subjects: Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Entrepreneurship (150304)
Divisions: Current > Research Centres > Australian Centre for Entrepreneurship
Current > QUT Faculties and Divisions > QUT Business School
Current > Schools > School of Management
Copyright Owner: Please consult the authors
Deposited On: 27 Jan 2011 10:09
Last Modified: 27 Jan 2011 16:18

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