Crisis and arbitrage opportunities: The role of causation, effectuation and entrepreneurial learning

Khurana, Indu; Dutta, Dev K.; Schenkel, Mark T.

doi:10.1177/02662426211061679

Cited by 14 publications

(6 citation statements)

References 118 publications

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“…Sarasvathy (Sarasvathy, 2008) reinforces the importance of experiential knowledge, highlighting that "Sustained performance over long periods of time requires that experts outlive failures, cumulate successes, and learn from both" (p.20). Another one (Khurana et al, 2022) found evidence of combinations of both logics but in alternating magnitutes, with a higher proportion of causation first and of effectuation later in the specific context of opportunity exploitation.…”

Section: Alternating Between the Two Logics: A Life Cycle Issue (Meso...mentioning

confidence: 98%

“…As in the case of Khurana et al (2022), the use of combined logics is usually a macro level decision, in other words, when context is complex and variable, requiring the decision logic to follow. It is not necessarily dependent on the entrepreneur/decision maker or on the age/life cycle of the enterprise, the decision logic depends on the situation/decision at hand, needing to be analyzed and decided on a case-by-case basis (Fisher, 2012;Kaufmann, 2013;Crick & Crick, 2014;Sitoh et al, 2014;Nummela et al, 2014;Dutta et al, 2015;Maine et al, 2015).…”

Section: Combining Both Logics: a Macro Level Issue Or A Matter Of Jo...mentioning

confidence: 99%

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Combining effectuation and causation approaches in entrepreneurship: A 20+ years review

Kogut,

Mello,

Skorupski

2023

REGEPE Entrep. and Small Bus. J.

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Objective of the study: This paper gathers, and reviews published empirical or theoretical articles in which the entrepreneurial logics of causation and effectuation, coined by Sarasvathy in 2001, are discussed to answer the research question of “Under what circumstances do firms combine effectuation with causation?”. Methodology/approach: The research is based on a systematic literature review of top-tier journals over a 20-year period. Main results: Findings suggest causation and effectuation logics can be applied simultaneously or in sequence, depending on factors at the micro (the entrepreneur), meso (the firm), and macro levels (business context—institutional and situational). Theoretical/methodological contributions: It delivers a compiled, synthesized, and contrasted set of past work for future researchers to build upon and a preliminary conceptual matrix for further testing and refinement, not to mention an in-depth discussion at the micro, meso and macro level. Relevance/originality: Over 20 years after Sarasvathy’s seminal work, most literature investigating decision-making still focuses on contrasting the logics of causation or effectuation, not fully understanding the conditions under which each prevails or when they are combined. Social/management contributions: At the micro level, this research can help entrepreneurs better understand their profile and the benefits of considering both logics throughout their decision-making process. At the meso level, companies can benefit from understanding how logics relate at each life stage. Finally, at the macro level, policymakers and educators can help entrepreneurs navigate uncertain and turbulent environments if different logics and circumstances are more broadly acknowledged.

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Section: Alternating Between the Two Logics: A Life Cycle Issue (Meso...mentioning

confidence: 98%

Section: Combining Both Logics: a Macro Level Issue Or A Matter Of Jo...mentioning

confidence: 99%

Combining effectuation and causation approaches in entrepreneurship: A 20+ years review

Kogut,

Mello,

Skorupski

2023

REGEPE Entrep. and Small Bus. J.

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“…The way entrepreneurs learn is diverse, for example, from peers, experience and consumers and suppliers, etc. (Hunter and Lean, 2018; Khurana et al , 2022). Essentially, all of these processes are linked to the informational or interactive ways of learning, being primarily dependent on the entrepreneurs’ own experience.…”

Section: Introductionmentioning

confidence: 99%

An empirical investigation and assessment of entrepreneurial learning factors: a DEMATEL approach

Agarwal

Agrawal

Ramadani

et al. 2022

JRME

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Purpose During the different phases of enterprise creation, entrepreneurial learning (EL) can be understood as an effective process. This study aims to find out the cause-and-effect relationships of the factors that are impacting EL. Design/methodology/approach This research has been conducted in two ways: first, the factors are identified through a systematic analysis of EL, and second, the cause-and-effect relationship among EL factors is analyzed using decision-making trial and evaluation laboratory, which is dependent on the opinion of experts. A network relationship matrix is also drawn from the measured factors. Findings A causal relationship has been established within the identified EL factors. Results indicate that educators and practitioners should focus and concentrate on the cause group-related factors, which are entrepreneurship education, entrepreneurial training, entrepreneurial competencies, experiences, family influence and role models. The remaining two, entrepreneurial perception and entrepreneurial willingness, are identified as being in the effect group. These two factors are affected and influenced by the cause group factors. Research limitations/implications By recognizing the multidimensionality of EL, this study gives the chance to look at what it means to be an entrepreneur from both a personal and a social point of view, including learning styles, learning from mistakes and self-regulated learning. Future research is urged to build tools that accurately capture this crucial factors of EL, thus allowing the field to gain greater integration and information accumulation. Originality/value Researchers have previously described factors that influence EL, but to the best of the authors’ knowledge, this is one of few studies that depict the cause-and-effect relationship between EL factors. These factors are critical to the growth of talented entrepreneurs in both developed and developing countries for promoting an entrepreneurial culture.

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“…In addition, there are demands which are not formally stated but it is hoped that MSMEs become the "heroes" who turn on the economic foundation of a country, especially during the hard times of the Covid-19 pandemic (Maritz et al, 2020). The research done by Khurana et al (2022), stated that during the Covid-19 crisis, the companies studied identified arbitrage opportunities and then tried to make them happen using the effectuation approach (owned resources). The decision to identify arbitrage opportunities and make them happen is a temporary decision to bridge the company's need to survive in difficult times.…”

Section: Introductionmentioning

confidence: 99%

Arbitrage vs innovation opportunity analysis among MSMEs actors in Surabaya

Tambunan

Fajar

Sumaji

et al. 2022

jeb

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The Covid-19 pandemic has brought changes in various aspects of life, especially in business management. This study aims to examine whether there are differences in the choice of opportunities between arbitrage opportunities and innovation opportunities by micro, small and medium enterprises (MSMEs) in the food and beverage sector in Surabaya city during the Covid-19 pandemic. The sampling technique used in this study was purposive sampling with certain criteria. Data was collected from 100 respondents who met the criteria which were then tested using the Sappiro Wilk average difference test because the data were found to be not normally distributed. The results showed that there was a difference between arbitrage opportunity and innovation opportunity. It was also found that food and beverage MSMEs actors in Surabaya city were engaged in innovation opportunities (81 respondents) more than arbitrage opportunities (15 respondents) whereas the rest 4 respondents are engaged in both opportunities. The implications of this finding show that the ability of MSMEs actors to survive in difficult times, especially during the COVID-19 pandemic with various restrictions on business operations in the food and beverage sector, lies in their ability to identify and execute the opportunities.

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Crisis and arbitrage opportunities: The role of causation, effectuation and entrepreneurial learning

Cited by 14 publications

References 118 publications

Combining effectuation and causation approaches in entrepreneurship: A 20+ years review

Combining effectuation and causation approaches in entrepreneurship: A 20+ years review

An empirical investigation and assessment of entrepreneurial learning factors: a DEMATEL approach

Arbitrage vs innovation opportunity analysis among MSMEs actors in Surabaya

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