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Influence of cultural tightness-looseness on causal and effectual decision-making.

Munster, Ard A.M. (2016) Influence of cultural tightness-looseness on causal and effectual decision-making.

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Abstract:A new scale is developed to measure effectuation and causation in a quantitative way. This scale is used to measure to what extent the society influences entrepreneurs in using a causal or effectual decision-making approach. The cultural tightness-looseness construct (Gelfand et al, 2011) gained research attention in recent years and provides a new perspective on culture. This new perspective was desired because previous studies found unconvincing results with using the value perspective of Hofstede. The hypotheses state the proposed relationships between cultural tightness-looseness and the principles of effectuation and causation. It is found that entrepreneurs, who are influenced by a loose society, apply a more causal logic than an effectual logic in the decision-making process. Entrepreneurs, who are influence by a tight society, also apply more causal reasoning than effectual reasoning. These findings indicate that tight and loose entrepreneurs use both types of reasoning, but mainly apply the causal logic. The results show that some principles of effectuation and causation are shared constructs of each other and that effectuation is a formative construct, which is similar to findings of Chandler et al. (2011). Future research should expand on how effectuation and causation could be measure as separate constructs and how the broad construct can be applied to multiple fields of research. Also, further research can be recommended to investigate if Gelfand’s scale on cultural strength is valid and reliable enough to apply it in an entrepreneurial context.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:02 science and culture in general, 85 business administration, organizational science
Programme:Business Administration MSc (60644)
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