Abstract

In this article we attempt to develop and validate measures of both causation and effectuations processes. Using a pilot study consisting of 180 firms and a second study of 196 firms we find that causation processes appear to be a well-defined and coherent set of practices that can be viewed as a unidimensional construct. However, concerning effectuation processes our findings were not as clear. In the pilot study we established that effectuation consisted of several subdimensions. We theoretically developed these subdimensions (flexibility, experimentation, affordable loss, precommitments, and partnering) further and tested them in the second study. Goodness of fit tests indicate that the first order model and second order model fit the data similarly. Therefore, we were unable to establish that the five independent factors are a subdimension of the larger construct called effectuation.

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