University of Twente Student Theses

Login

Intolerance of uncertainty and culturaltTightness-looseness - two antecedents of effectuation-causation: evidence from South Africa

Tran, Thuy (2020) Intolerance of uncertainty and culturaltTightness-looseness - two antecedents of effectuation-causation: evidence from South Africa.

[img] PDF
2MB
Abstract:The effectuation theory has long been criticised to be deficient in its theoretical foundation, leading to fierce calls for additional tests of the link between the notions of effectuation-causation and other established constructs. Attempting to address such calls, the paper identifies two conceptual drivers of effectuation-causation, uncertainty and culture, and explore how they influence an entrepreneur in making decisions in the context of new venture creation. Uncertainty is examined at the individual level, measured by the degree of uncertainty intolerance, while culture captures impacts from the external environment via the concept of cultural tightness-looseness. A series of hypotheses are developed and tested using a sample of 230 entrepreneurs operating in South Africa. Results show that uncertainty intolerance and cultural tightness-looseness have significant effects on the use of causation but are not statistically related to effectuation, unlike extant literature which postulates that entrepreneurs tend to prefer effectual logics under conditions of uncertainty. Limitations of the study are identified, leaving room for improvement for future research. Replication of the study using different datasets is especially insisted to validate the obtained results. Entrepreneurs and policymakers are welcomed to benefit from the study's practical implications to improve their decision-making processes and promote entrepreneurial activities.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/82786
Export this item as:BibTeX
EndNote
HTML Citation
Reference Manager

 

Repository Staff Only: item control page