How Does the Combination of Factors Influence Entrepreneurs’ Decision-Making Logic? A Qualitative Comparative analysis

Xu Yongfei, Baranchenko Yevhen (), Lin Zhibin, Wu Qin and Arakpogun Emmanuel
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Xu Yongfei: Changzhou Textile Garment Institute, Changzhou, China
Baranchenko Yevhen: Newcastle Business School , Northumbria University, Newcastle upon Tyne, UK
Lin Zhibin: Durham University Business School, Durham University, Durham, UK
Wu Qin: Business School, Nanjing University, Nanjing, China
Arakpogun Emmanuel: Newcastle Business School , Northumbria University, Newcastle upon Tyne, UK

Entrepreneurship Research Journal, 2024, vol. 14, issue 3, 1461-1484

Abstract: This study explores the different paths that lead to the effectuation and causation of entrepreneurial decision-making logic. Data were collected from a sample of 300 entrepreneurs in China in January and March 2018 and analyzed using crisp-set qualitative comparative analysis (csQCA). The results reveal various combinations of four key factors, i.e., environmental uncertainty, entrepreneurial experience, organizational slack, and centralization of decision-making factors, determine the effectuation or causation logics. No antecedent condition alone is necessary to produce the outcome, although several factors are identified as sufficient for the presence of effectual or causal decision-making logics. This study advances the entrepreneurship literature by revealing the combinations of factors that Knowledge of how the factors interact in the decision-making process determine entrepreneurial decision-making logic. The study findings can help entrepreneurs to better communicate, discuss and justify their decisions.

Keywords: effectuation and causation; environmental uncertainty; entrepreneurial experience; organizational slack; centralization of decision-making (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1515/erj-2021-0249

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