2014
DOI: 10.1177/0266242614534281
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Effectuation and home-based online business entrepreneurs

Abstract: This article explores effectual processes within home-based online businesses. Our empirical evidence provides a number of refinements to the concept of effectuation in this specific domain. First, the ubiquity of non-proprietary online trading platforms encourages the adoption of effectual approaches and removes the importance of forming proprietary strategic alliances and pre-commitments. Second, the notion of affordable loss – a central tenet of effectuation – should be extended beyond the notion of economi… Show more

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Cited by 76 publications
(66 citation statements)
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References 99 publications
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“…The HBB literature argues that motivations for running a business from home are primarily related to cost minimization from low overheads (Loscocco and Smith-Hunter 2004;Mason, Carter, and Tagg 2011;Vorley and Rodgers 2014;Daniel, Di Domenico, and Sharma 2015). Business start-ups outside people's homes cluster in industries that are likely to require more start-up capital than an HBB (cf.…”
Section: Housing As a Financial Asset For Individualsmentioning
confidence: 99%
“…The HBB literature argues that motivations for running a business from home are primarily related to cost minimization from low overheads (Loscocco and Smith-Hunter 2004;Mason, Carter, and Tagg 2011;Vorley and Rodgers 2014;Daniel, Di Domenico, and Sharma 2015). Business start-ups outside people's homes cluster in industries that are likely to require more start-up capital than an HBB (cf.…”
Section: Housing As a Financial Asset For Individualsmentioning
confidence: 99%
“…With this always-connected online environment, business ideas can be tested to collect feedback, and then modified with relatively low cost and fast turnaround time. Entrepreneurs hence can easily and quickly launch new businesses to capitalize new opportunities (Daniel et al, 2014). With effectuation, entrepreneurs can transform imaginations into new products and services promptly, effectively creating growth opportunity for their new ventures (Sarasvathy and Dew, 2005).…”
mentioning
confidence: 99%
“…We examine the experiences of 23 UK home‐based knowledge‐workers who went from employment to self‐employment with online virtual businesses like web‐design and web‐development, hosting online communities and professional IT services. Our study adds fresh insight into mobility‐isolation paradoxes in the home, under‐researched as a work domain, despite being identified as increasingly significant (Clark and Douglas, ; Daniel et al, ; Mason and Reuschke, ). Focusing on this context, we broaden analyses of knowledge‐workers away from the corporate to the home context with its potentially diverse ‘creative spaces’ (Gaim and Wåhlin, , p. 33).…”
Section: Introductionmentioning
confidence: 84%