Effectuation, opportunity shaping and innovation strategy in high-tech new ventures
TL;DR: In this paper, a theoretical model that links effectuation to innovation strategy through opportunity shaping in high-tech new ventures was developed by integrating the effectuation theory, innovation strategy literature and opportunity literature.
Abstract: Innovation strategy is critical for firms to achieve success in the market. However, relatively little is known about what factors promote the development of innovation strategy in high-tech new ventures. The purpose of this paper is to address this gap by developing and examining the theoretical model that links effectuation to innovation strategy through opportunity shaping in high-tech new ventures.,The proposed theoretical model is developed by integrating the effectuation theory, innovation strategy literature and opportunity literature. Empirical data were collected from 212 entrepreneurs and top executives in Chinese high-tech new ventures through a survey. Baron and Kenny’s (1986) mediation and moderation model assessment procedures are used to analyze the data.,The empirical results indicate that effectuation has a positive effect on innovation strategy and opportunity shaping. Opportunity shaping has a positive effect on innovation strategy, and its effect is positively moderated by competitive intensity. The author also finds that opportunity shaping plays a fully mediating role in the relationship between effectuation and innovation strategy.,These findings enrich innovation strategy research and advance the effectuation theory by providing empirical evidence of the impact of effectuation on innovation strategy in high-tech new ventures. The findings also contribute to a growing stream of research on opportunity and integrating opportunity shaping into a more complete framework of innovation. Moreover, this research provides deeper insight into the missing links between effectuation and innovation strategy in high-tech new ventures by uncovering the mediating role of opportunity shaping.
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11 Sep 2020
TL;DR: In this article, the authors investigate whether outsourcing mediates the impact of dynamic strategic capabilities on strategic entrepreneurship and conclude that outsourcing does not mediate the relationship between dynamic strategic capability and strategic entrepreneurship.
Abstract: This research aims to investigate whether outsourcing mediates the impact of dynamic strategic capabilities on strategic entrepreneurship. The population of the research consists of top managers in five stars hotels. A sample of 215 respondents were selected for the research in which 186 questionnaires were valid for statistical analysis. Structural equation modelling (SEM) was used to test the hypotheses of the research. The results of the research indicate that outsourcing does not mediate the relationship between dynamic strategic capabilities and strategic entrepreneurship. All the dimensions of dynamic strategic capabilities have a statistical impact on strategic entrepreneurship, while the dynamic strategic capabilities dimension all affect outsourcing except the seizing capability. Based on the research results, managers and decision-makers have to focus on innovation functions by enhancing the role of knowledge management and R&D activities, as well as concentrate on employees training programs.
46 citations
Cites background from "Effectuation, opportunity shaping a..."
...Fundamentally, these strategies emphasising the necessity of providing novel products and services which correspond with customer adoption of new and modern lifestyles, although there are risks that customers may not accept such products and services (Guo, 2019; Xinwei et al., 2018)....
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TL;DR: In this article, the authors make the case for transforming the testbed into fertile soil in which the disciplines can grow and bear new fruit, and summarize what they learn from the works in the special issue in order to construct a research agenda that can move effectuation from entrepreneurship to the disciplines and beyond into new futures.
Abstract: Reflecting on the 12 works that compose this special issue, we are struck by the distinctiveness of effectuation as a theory native to the domain of entrepreneurship. While theoretical perspectives from disciplines including economics, psychology, and sociology have been applied to understanding the new venture phenomenon, entrepreneurship scholars have historically had little to offer in return beyond the testing bed. The authors in this special issue begin to make the case for transforming the bed into fertile soil in which the disciplines can grow and bear new fruit. Moreover, uncertainty, co-creation, resources, goals, and control all represent important and current issues in management, marketing, organizations, finance, and operations. Effectuation has something new to offer to each of these. In this article, we summarize what we learn from the works in the special issue in order to construct a research agenda that can move effectuation from entrepreneurship to the disciplines and beyond into new futures.
36 citations
TL;DR: In this article, the authors analyze the use of causal and effectual decision-making logics to evaluate their direct and ambidextrous effects on innovation in technology-based SMEs and provide evidence that not just one path, but rather a pool of alternatives, supports product and process innovation development.
Abstract: Technology-based SMEs develop their activity in changing environments with strong competitive pressures. These conditions make them much more likely to innovate but also make the innovative process more challenging due to greater complexity of decisions about resources and establishment of actions to achieve favorable innovation results. Although prior studies have analyzed diverse factors that impact the innovative dynamics of this type of firm, little advance has been made in exploring the problem from the perspective of decision-making. This study seeks to close this research gap using Effectuation Theory, one of the most-cited theories emerging in the field of entrepreneurship. More specifically, we analyze the use of causal and effectual decision-making logics to evaluate their direct and ambidextrous effects on innovation in technology-based SMEs. Our results provide evidence that not just one path, but rather a pool of alternatives, supports product and process innovation development. More specifically, when technology SMEs pursue product innovation, both effectuation and causation can be used as predominant mechanisms to achieve positive innovation results. If firms also seek to develop process innovations, however, they may obtain better results with an ambidextrous approach.
27 citations
TL;DR: In this paper, the authors explored how the regional environmental mechanism is inherent in the link between new product development and sustainable business performance of SMMEs in Asian countries, due to high-velocity business environments.
17 citations
TL;DR: The authors introduced effectuation and causation as mediators to explore the mechanism of resource combination activities and new ve... drawing on effectuation theory and the theory of firm growth, they introduce effectuation mediators as the mediators.
Abstract: Drawing on effectuation theory and the theory of firm growth, our study introduces effectuation and causation as the mediators to explore the mechanism of resource combination activities and new ve...
14 citations
Cites methods from "Effectuation, opportunity shaping a..."
...Second, by adopting an effectuation approach, new ventures will generate novel opportunities with the resources at hand and contribute to growth (Cai et al., 2017; Guo, 2019; Smolka et al., 2018)....
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References
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TL;DR: This article seeks to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating the many ways in which moderators and mediators differ, and delineates the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena.
Abstract: In this article, we attempt to distinguish between the properties of moderator and mediator variables at a number of levels. First, we seek to make theorists and researchers aware of the importance of not using the terms moderator and mediator interchangeably by carefully elaborating, both conceptually and strategically, the many ways in which moderators and mediators differ. We then go beyond this largely pedagogical function and delineate the conceptual and strategic implications of making use of such distinctions with regard to a wide range of phenomena, including control and stress, attitudes, and personality traits. We also provide a specific compendium of analytic procedures appropriate for making the most effective use of the moderator and mediator distinction, both separately and in terms of a broader causal system that includes both moderators and mediators.
80,095 citations
01 Jan 1973
TL;DR: In this paper, a six-step framework for organizing and discussing multivariate data analysis techniques with flowcharts for each is presented, focusing on the use of each technique, rather than its mathematical derivation.
Abstract: Offers an applications-oriented approach to multivariate data analysis, focusing on the use of each technique, rather than its mathematical derivation. The text introduces a six-step framework for organizing and discussing techniques with flowcharts for each.
Well-suited for the non-statistician, this applications-oriented introduction to multivariate analysis focuses on the fundamental concepts that affect the use of specific techniques rather than the mathematical derivation of the technique. Provides an overview of several techniques and approaches that are available to analysts today - e.g., data warehousing and data mining, neural networks and resampling/bootstrapping. Chapters are organized to provide a practical, logical progression of the phases of analysis and to group similar types of techniques applicable to most situations.
Table of Contents
1. Introduction.
I. PREPARING FOR A MULTIVARIATE ANALYSIS.
2. Examining Your Data.
3. Factor Analysis.
II. DEPENDENCE TECHNIQUES.
4. Multiple Regression.
5. Multiple Discriminant Analysis and Logistic Regression.
6. Multivariate Analysis of Variance.
7. Conjoint Analysis.
8. Canonical Correlation Analysis.
III. INTERDEPENDENCE TECHNIQUES.
9. Cluster Analysis.
10. Multidimensional Scaling.
IV. ADVANCED AND EMERGING TECHNIQUES.
11. Structural Equation Modeling.
12. Emerging Techniques in Multivariate Analysis.
Appendix A: Applications of Multivariate Data Analysis.
Index.
37,124 citations
TL;DR: This chapter discusses Structural Equation Modeling: An Introduction, and SEM: Confirmatory Factor Analysis, and Testing A Structural Model, which shows how the model can be modified for different data types.
Abstract: I Introduction 1 Introduction II Preparing For a MV Analysis 2 Examining Your Data 3 Factor Analysis III Dependence Techniques 4 Multiple Regression Analysis 5 Multiple Discriminate Analysis and Logistic Regression 6 Multivariate Analysis of Variance 7 Conjoint Analysis IV Interdependence Techniques 8 Cluster Analysis 9 Multidimensional Scaling and Correspondence Analysis V Moving Beyond the Basic Techniques 10 Structural Equation Modeling: Overview 10a Appendix -- SEM 11 CFA: Confirmatory Factor Analysis 11a Appendix -- CFA 12 SEM: Testing A Structural Model 12a Appendix -- SEM APPENDIX A Basic Stats
23,353 citations
20 Jul 2000
TL;DR: The relation of the society outside organizations to the internal life of organizations is discussed in this article, where the authors focus on the effects of organizational variables on the surrounding social environment, including groups, institutions, laws, population characteristics, and sets of social relations that form the environment of the organization.
Abstract: The general topic of this chapter is the relation of the society outside organizations to the internal life of organizations Part of the specific topics have to do with the effect of society on organizations, and part of them concern the effects of organizational variables on the surrounding social environment I intend to interpret the term “social structure” in the title in a very general sense, to include groups, institutions, laws, population characteristics, and sets of social relations that form the environment of the organization That is, I interpret “social structure” to mean any variables which are stable characteristics of the society outside the organization By an “organization” I mean a set of stable social relations deliberately created, with the explicit intention of continuously accomplishing some specific goals or purposes These goals or purposes are generally functions performed for some larger structure For example, armies have the goal of winning possible military engagements The fulfillment of this goal is a function performed for the larger political structure, which has functional requirements of defense and conquest I exclude from organizations many types of groups which have multiple purposes (or which perform multiple functions for larger systems, whether these are anyone's purposes or not), such as families, geographical communities, ethnic groups, or total societies 1 also exclude social arrangements built up on the spur of the moment to achieve some specific short-run purpose For instance, I will not consider a campaign committee for some political candidate as an “organization,” although a political party would definitely meet the criterion of continuous functioning and relatively specific purposes
5,017 citations