A Stakeholder Perspective on Effectuation Processes
(Conference abstract)
: Jonathan Van Mumford, Peter Zettinig
: Guclu Atinc
: Academy of Management Annual Meeting
: 2020
: Academy of Management annual meeting proceedings
: 0065-0668
DOI: https://doi.org/10.5465/AMBPP.2020.18910abstract
In this paper we seek to contribute to theorising on the process of new venture or new market creation through effectuation processes by conceptualising a stakeholder perspective on commitments to effectual processes and the rationales that underlie them. We argue that while effectual and causal logics sufficiently represent decision-making under instrumental rationality, there is currently a lack of discussion on the subjectively rational motivations that may influence stakeholder decision-making towards entrepreneurial effectual processes under varying levels of uncertainty. While the extant literature suggests that the logic underlying stakeholder commitments to effectual networks and processes will be follow a similar means-oriented rationale to effectual entrepreneur, we suggest different commitments will follow different rationales ranging from instrumentally rationale effectual and causal logics, to subjective logics based upon ‘self-belief’ and ‘faith-reasoning’. Explicating these four ideal types of commitment rationale in a typology in relation to motivation and perceptions of uncertainty, we go on to theorise on how stakeholders employing these different rationales may behave pre- and post-commitment, and the implications these pose for how effectual processes unfold."