The Influence of National Culture on Entrepreneurial Decision-Making : Effectuation and Causation in the Estonian Context

This research explored the influence of national culture on the preference for effectuation or causation strategies among Estonian entrepreneurs. The research explores the decision-making processes of Estonian entrepreneurs to understand how cultural characteristics shape their strategic approaches. Utilising qualitative research methods, including six semi-structured interviews with entrepreneurs of varying experience levels, the data was analysed using abductive coding techniques. The findings reveal that Estonian entrepreneurs blend effectuation and causation in their everyday decision-making. Gut feeling and intuition are heavily relied upon for decisions, aligning with effectuation principles, while systematic analytical approaches are employed for complex and long-term decisions, reflecting causation strategies. This hybrid approach balances applying both strategies depending on the context. Generational differences emerged as a significant factor influencing decision-making styles with older entrepreneurs, with more established businesses and greater responsibilities, tend to combine intuitive decisions with analytical validation to mitigate risks, whereas younger entrepreneurs, who typically face lower stakes, are more inclined to rely on intuition alone while also showcasing a higher risk tolerance and adaptability. The research contributes to the understanding of using decision-making strategies, highlighting the importance of a hybrid approach in the dynamic business environment of Estonia.