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The nonlinear effect of effectuation and causation on new venture performance: The moderating effect of environmental uncertainty

Xue Bing Peng, Yue Ling Liu, Qi Qi Jiao, Xiao Bin Feng and Bei Zheng

Journal of Business Research, 2020, vol. 117, issue C, 112-123

Abstract: Prior researches suggest that there are either positive or negative effect of E&C on new venture performance (NVP). To reconcile the conflicting view, this study proposes the nonlinear relationships between E&C and NVP, and the moderating effect of environmental uncertainty on them. An examination of 407 new ventures data in an emerging economics reveals that while there is a J-shaped curvilinear relationship between effectuation and NVP, there is an inverted U-shaped curvilinear relationship between causation and NVP. Empirical studies also reveal that environmental uncertainty positively moderates the J-shaped curvilinear effect of effectuation on NVP. This study contributes to the literature of E&C-performance linkage in nonlinear perspective and offers a more nuanced view of the relationship between E&C and NVP in environmental uncertainty.

Keywords: Effectuation; Causation; New venture performance; Environmental uncertainty; The nonlinear effect (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:117:y:2020:i:c:p:112-123

DOI: 10.1016/j.jbusres.2020.05.048

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