University of Twente Student Theses
The Role of Business Incubation in Shaping Decision-Making Styles of Novice Entrepreneurs : A Study on Effectuation and Causation
Jamin, M.C. (2024) The Role of Business Incubation in Shaping Decision-Making Styles of Novice Entrepreneurs : A Study on Effectuation and Causation.
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| Abstract: | Business incubators aim to support startup entrepreneurs with resources, mentoring, and networking opportunities. These organizations provide entrepreneurs with valuable support and guidance during the critical early stages of their startup's development. However, despite the increasing academic interest in both entrepreneurial decision-making and business incubation, we still know very little about how business incubators influence the entrepreneurs they intend to support. Causation and effectuation have emerged as dominant frameworks for understanding how entrepreneurs make decisions. Causation is a linear approach focused on predicting and controlling outcomes, starting with a clear goal, and selecting means to achieve it. In contrast, effectuation is non-predictive, focusing on using existing means to achieve goals that may not have been predefined. This study aims to expand our knowledge of how business incubators influence the entrepreneurial decision-making styles of effectuation and causation, particularly during the early developmental startup phases. Through a qualitative analysis of in-depth semi-structured interviews with entrepreneurs and incubator managers across two incubators, this study explores how novice, inexperienced, entrepreneurs navigate effectuation and causation within the incubation process. This study offers valuable insights into the incubator's tenants, business incubation programs, and their impact on the development of entrepreneurial decision-making styles. Findings reveal a dynamic interplay between effectuation and causation, with entrepreneurs using a hybrid decision-making approach that adapts to their evolving internal and external startup conditions. Inductively identified conditions include perceived environmental uncertainty, financial resources, and stakeholder pressure. Contrary to initial expectations, incubators do not enforce a singular decision-making logic but rather support the adaptive use of both effectuation and causation, tailored to each developmental startup phase. The study contributes to the literature by exploring the role of business incubation on the journey of novice entrepreneurs. The findings provide practical recommendations for incubators, policymakers, investors, and entrepreneurs, highlighting the importance of understanding both decision-making styles and startups’ internal and external conditions. These include insights for tailoring incubator support to the specific needs of startups at various stages of development and promising directions for future research. Keywords: Entrepreneurial Decision-Making, Effectuation, Causation, Startups, Business Incubators |
| 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: | https://purl.utwente.nl/essays/98368 |
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