Combination of causal and effectual logics of entrepreneurs in the Provence wine region

Serge Amabile and Coralie Haller

International Journal of Entrepreneurship and Small Business, 2024, vol. 52, issue 3, 332-351

Abstract: Effectuation and causation are possible logics to explain entrepreneurs' behaviours in uncertain environments in regards to four principles (experimentation, affordable losses, flexibility and pre-engagement). However, little is known about how entrepreneurs articulate these two logics on each principle of the theory of effectuation. Our research provides an analysis of how entrepreneurs combine causal and effectual logics for each principle of the theory of effectuation. We use a quali-quantified approach and have designed an evaluation grid and a scoring system to analyse eight interviews of entrepreneurs from wineries of the Provence region in France. The findings show that entrepreneurs cannot be considered as exclusively causal or effectual thinkers. All or a vast majority of the entrepreneurs interviewed combined causal and effectual logics for the experimentation and pre-commitment principles. The results also highlight that entrepreneurs are able to switch from one logic to the other in certain situations according to the information gathered for instance through business intelligence activities.

Keywords: entrepreneurship; effectuation logic; causation logic; combination; wine industry; contingencies of the environment; experimentation; affordable losses; pre-commitments; engagement of stakeholders. (search for similar items in EconPapers)
Date: 2024
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