Effectuation and causation models: an integrative theoretical framework

• Published in: Small business economics 2024-03, Vol.62 (3), p.879-893
• Main Authors: Racat, Margot, Ricard, Antonin, Mauer, René
• Format: Article
• Language: English
• Subjects: Academic staff; Behavior; Business administration; Business and Management; Causality; Cognition; Cognition & reasoning; Cognitive theories; Cognitive-behavioral factors; Decision making; Entrepreneurs; Entrepreneurship; Frame analysis; Humanities and Social Sciences; Industrial Organization; Management; Microeconomics; Research Article; Understanding
• ISSN: 0921-898X; 1573-0913
• DOI: 10.1007/s11187-023-00787-x

The realm of entrepreneurship has seen a rise in research on effectuation from the perspective of cognition, which has sparked significant discussion among academics due to a lack of well-defined theoretical foundations. However, despite this interest in cognitive theories, the grounded cognition theory has not been adequately explored to explain the behavior of entrepreneurs. Accordingly, we propose an integrative theoretical framework for the effectuation and causation models in light of an offloading process. This process helps to explain the relationship between the entrepreneur’s cognitive antecedents and their behavioral outcomes. Consequently, our study provides theoretical underpinnings for effectuation and a better understanding of how effectuation and causation models are alternatingly engaged during the entrepreneur’s decision-making process. Plain English Summary The entrepreneur’s behavior explained by the grounded cognition theory: how and why effectuation and causation are complementary models of decision-making? This research draws on grounded cognition theory and aims to deepen our understanding of the entrepreneurial decision-making process through the notion of “offloading.” It also discusses its behavioral consequences according to effectuation and causation models. This research theoretically explains the basis for effectuation and suggests an integrative framework for the entrepreneurial decision-making process, which is critically needed in the current body of research. By understanding the complementary nature of the two models, entrepreneurs can gain a better understanding of their own decision-making process and improve their overall practices. This research therefore strengthens entrepreneurs’ awareness of the point at which they switch from one process to another, thereby legitimizing their decision-making process, by improving representation of the entrepreneurial decision-making process. This research therefore helps us understand the business practices of entrepreneurs.