Abstract

Causation and effectuation are constantly intertwined and balanced in entrepreneurial activities. However, the emerging field of effectuation mainly focuses on exploring effectual logic of reasoning. Considering that causation and effectuation are not the opposite constructs of a continuum but rather the orthogonal strategies that can have a certain degree, it stays unclear how causal and effectual actions can be balanced and unfold hand in hand. This article puts causation and effectuation into the context of entrepreneurial networking to explore how entrepreneurs establish relations following causal and effectual logic and how they balance these two logics. By doing so, this article responds to the numerous calls for studying the dynamics of entrepreneurial networks and enhancing the understanding of their complexity. It would also extend effectuation theory by applying its principles to the context of entrepreneurial relations. The paper provides a model of entrepreneurial network formation where the processes of causal and effectual networking are contrasted.

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