Do Effectuation Processes Shape the Relationship between Product Diversification and Performance in New Ventures?

Ioanna Deligianni, Irini Voudouris and Spyros Lioukas

Entrepreneurship Theory and Practice, 2017, vol. 41, issue 3, 349-377

Abstract: This study applies the lens of effectuation to product diversification and examines the moderating effects of effectuation processes on the relationship between diversification and performance in new ventures. Effectuation processes are conceptualized in terms of experimentation, affordable loss, flexibility, and pre–commitments. The findings indicate that, with the exception of affordable loss, effectuation processes exert a positive effect on the diversification–performance relationship. Theoretical and empirical implications are discussed.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:sae:entthe:v:41:y:2017:i:3:p:349-377

DOI: 10.1111/etap.12210

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