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The effect of entrepreneurial passion on the choice between effectual and causal decision making processes of novice entrepreneurs

Lohuis, Koen (2018) The effect of entrepreneurial passion on the choice between effectual and causal decision making processes of novice entrepreneurs.

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Abstract:Researchers identified two streams of decision making processes in the creation of new ventures: causation and effectuation. Entrepreneurs who use causal reasoning, make use of a planned approach. With this approach, entrepreneurs undertake their business on the basis of complying to pre-determined goals and plans. On the other hand, entrepreneurs who use effectuation act on the basis of an emergent approach. With this stream, entrepreneurs focus on their available resources while being responsive to their dynamic environment. The theory of effectuation and causation is still underdeveloped, which is why researchers urged to examine the influencing factors. This thesis examines whether entrepreneurial passion - which is at the heart of entrepreneurship - plays a role in entrepreneurs’ preference for effectuation or causation. Entrepreneurial passion, consisting of passion for inventing, founding and developing provides the fire that fuels innovation and persistence. This study is conducted in Malaysia amongst novice entrepreneurs, who were approached through social media and local bazaars to fill in a questionnaire. The results firstly show that novice Malaysian entrepreneurs prefer to use causation over effectuation. Entrepreneurial passion is proved to have significant relationships with effectuation/causation. All three domains of entrepreneurial passion have a significant effect on one or more of the effectuation/causation principles. Therefore, this thesis shows that entrepreneurial passion does have an effect on novice Malaysian entrepreneurs’ preference for effectuation or causation.
Item Type:Essay (Bachelor)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:02 science and culture in general
Programme:International Business Administration BSc (50952)
Link to this item:http://purl.utwente.nl/essays/75343
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