Causation versus Effectuation: Exploring the Impact of Educational Background on Entrepreneurial Decision-Making Strategies.

In exploring the field of entrepreneurial decision-making, this study delves into whether MBA students’ education, with its focus on planned strategies, mirrors the complexities faced by novice entrepreneurs, who may use a mix of planned and emergent strategies to navigate through unpredictability. By analyzing the decision-making processes of 20 Australian novice entrepreneurs via think-aloud protocols, this thesis uncovers the extent to which a study background in business and management influence their strategic preferences for causation versus effectuation. The findings suggest a nuanced relationship between education and decision-making styles, challenging the dichotomy between causation and effectuation. This continues the conversation about the effectiveness of MBA programs in preparing students, while also offering valuable perspectives to mentors and policymakers aiming for entrepreneurial success among novices.