Entrepreneurial Resources, Decision-Making Logic and Organisational Change Readiness: Enhancing SME Sustainability in New Zealand

Kathryn Walker () and Michelle Chin Chin Lee
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Kathryn Walker: School of Psychology, Massey University, Auckland 0632, New Zealand
Michelle Chin Chin Lee: School of Psychology, Massey University, Auckland 0632, New Zealand

Administrative Sciences, 2025, vol. 15, issue 5, 1-20

Abstract: Entrepreneurs are the backbone of most small- and medium-sized enterprises (SMEs), yet they have received little attention regarding how they prepare for organisational change readiness (OCR), especially in the current uncertain business environment and the disruption of Industrial Revolution 4.0 (IR 4.0). This study sought to understand how entrepreneurs’ decision-making logic (i.e., effectuation and causation) mediates the relationship between the different types of resources (i.e., financial and government resources, social capital) and OCR. A total of 119 participants (91 males), who were entrepreneurs, participated in this cross-sectional study. After controlling for age, gender, and education level, the study’s results found that a positive relationship existed between the two types of resources and OCR, mediated by decision-making logic. A positive relationship was also found between both types of decision-making logic and OCR. These results highlight the significant impact of both entrepreneurs’ social capital and financial and, government resources and decision-making logic on OCR.

Keywords: entrepreneurship; small- and medium-sized enterprises; organisational change readiness; decision-making logic; effectuation; causation; financial and government resources; social capital; resource-based view; Fourth Industrial Revolution; business sustainability; New Zealand (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2025
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