University of Twente Student Theses


Corporate effectuation : an explanatory study about the application of effectuation in a large established company

Kautschur, Luise (2016) Corporate effectuation : an explanatory study about the application of effectuation in a large established company.

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Abstract:The purpose of this study is to explain company specific conditions in order to apply entrepreneurial thinking and acting especially the logic of Effectuation in a corporate context. The space industry currently experience a boom in the commercialization of space technologies and the goal of a public access to space resulting in several small and medium sized emerging innovative space companies increasing competitive pressure. Therefore, space companies have to keep pace in this uncertain and fast developing market and should increase their innovative power to stay competitive. Seeking at innovative leadership and power in the space industry, companies apply planning and analysis approaches but only limited entrepreneurial thinking and acting. To enhance the innovative power and the overall performance of the firm, the dynamic and learning logic of Effectuation embedded in entrepreneurial thinking and acting, is explained in a specific space company. After literature research, conditions for corporate Effectuation are identified and serve as underlying conditions for data collection. Qualitative data is gathered through 15 semistructures interviews with participants positioned in innovation related and non-innovation related departments. After transcribing the interviews, data is analysed with the qualitative data analysis tool atlas.ti using template analysis and consolidating interview answers and comments. After three revised templates, the final template was created including the resulting conditions of applying Effectuation in a corporate context. The final conditions are separated in four different groups: organizational culture, organizational structure, human capital, and innovation. Organizational culture factors are: failure treatment, experimentation, top management support, and freedom to innovate. Organizational structure factors identified are the following: number of hierarchical levels, organic management style, flexibility, and separate organizational structure. The group human capital factors include: means-driven, controllability, risk assumption, use of contingencies, cooperation, pro-activeness/ motivation, capabilities, rewards, and an open mind-set. Lastly, innovation related factors include: time availability, communication, rules and routines, active involvement of employees, and access to resources/ expert knowledge. This thesis contributes to the application of entrepreneurial thinking and acting in a corporate context especially focusing on Effectuation and its development towards framework conditions for applying this logic in large companies. Practically, the thesis offers managerial implications on how to use entrepreneurial processes to enhance the innovative and competitive power as well as the overall firm performance.
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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