Effectuation Spectra in Chinese High-Tech Entrepreneurship: Domain-Specific Logic Orientations and Cross-Border M&A

Yipeng Liu and Andrew Isaak

A chapter in Mergers and acquisitions, entrepreneurship and innovation, 2016, pp 111-149 from ZBW - Leibniz Information Centre for Economics

Abstract: As the developing nations grow and experience rapid institutional transformation, research has begun to investigate the roles of culture, cognition and institutional context on entrepreneurship and innovation. This chapter aims to advance the entrepreneurial cognition literature by juxtaposing entrepreneurial effectuation, domain-specific expertise and ambiguity. By conducting a qualitative study of Chinese high-tech domestic and returnee entrepreneurs, the authors propose a spectrum between causation and effectuation and argue that the entrepreneur’s perceived level of ambiguity may better explain differing logic orientations among entrepreneurs, contributing to our understanding of entrepreneurial cognition. The authors theorize that 1) individual actors and the level of institutional development jointly comprise the entrepreneur’s logic orientation; 2) the level of perceived ambiguity mediates the strategy adopted by high-tech entrepreneurs; 3) the entrepreneur's logic orientation can be regarded as a continual spectrum from effectuation to causation. Finally, the logic orientation concept is applied to the context of cross-border Mergers and Acquisitions (M&A) from a process perspective and the implications and fit of logic orientation with the stages of cross-border M&A are discussed.

Keywords: Effectuation; Entrepreneurial Cognition; Mergers and Acquisitions; Decision-Making; China; High-tech entrepreneurship (search for similar items in EconPapers)
JEL-codes: D81 D91 G34 L26 M13 O19 O32 Z13 (search for similar items in EconPapers)
Date: 2016
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