Effectuation and causation in new internet venture growth: The mediating effect of resource bundling strategy

Internet Research

Volumn 26, Issue 2, 2016, Pages 460-483

  Guo, Runping ^a   Cai, Li ^a   Zhang, Weiyong ^b  

^a JILIN UNIVERSITY   (China)

^b OLD DOMINION UNIVERSITY   (United States)

Author keywords

Causation; Effectuation; Internet of Things; New internet venture growth; Resource bundling

Indexed keywords

EID: 84961627635     PISSN: 10662243     EISSN: None     Source Type: Journal    
DOI: 10.1108/IntR-01-2015-0003     Document Type: Article

References (105)

1. Acquaah, M. (2012), “Social networking relationships, firm-specific managerial experience and firm performance in a transition economy: a comparative analysis of family owned and nonfamily firms”, Strategic Management Journal, Vol. 33 No. 10, pp. 1215-1228.
2. Ahlstrom, D. and Bruton, G.D. (2010), “Rapid institutional shifts and the co-evolution of entrepreneurial firms in transition economies”, Entrepreneurship Theory and Practice, Vol. 34 No. 3, pp. 531-554.
3. Alvarez, S.A., Barney, J.B. and Anderson, P. (2013), “Forming and exploiting opportunities: the implications of discovery and creation processes for entrepreneurial and organizational research”, Organization Science, Vol. 24 No. 1, pp. 301-317.
4. Andries, P., Debackere, K. and Looy, B. (2013), “Simultaneous experimentation as a learning strategy: business model development under uncertainty”, Strategic Entrepreneurship Journal, Vol. 27 No. 4, pp. 288-310.
5. Ardichvili, A., Cardozo, R. and Ray, S. (2003), “A theory of entrepreneurial opportunity identification and development”, Journal of Business Venturing, Vol. 18 No. 1, pp. 105-123.
6. Baker, T. and Nelson, R.E. (2005), “Creating something from nothing: resource construction through entrepreneurial bricolage”, Administrative Science Quarterly, Vol. 50 No. 3, pp. 329-366.
7. Baraldi, E., Gressetvold, E. and Harrison, D. (2012), “Resource interaction in inter-organizational networks: foundations, comparison, and a research agenda”, Journal of Business Research, Vol. 65 No. 2, pp. 266-276.
8. Barney, J. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, Vol. 17 No. 1, pp. 99-120.
9. Baron, R.M. and Kenny, D.A. (1986), “The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations”, Journal of Personality and Social Psychology, Vol. 51 No. 6, pp. 1173-1182.
10. Batjargal, B. (2007), “Internet entrepreneurship: social capital, human capital, and performance of new internet venture in China”, Research Policy, Vol. 36 No. 5, pp. 605-618.
11. Batjargal, B. (2010), “Network dynamics and new ventures in China: a longitudinal study”, Entrepreneurship and Regional Development, Vol. 22 No. 2, pp. 139-153.
12. Bi, Z., Xu, L. and Wang, C. (2014), “Internet of things for enterprise systems of modern manufacturing”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1537-1546.
13. Brettel, M., Mauer, R., Engelen, A. and Küpper, D. (2012), “Corporate effectuation: entrepreneurial action and its impact on R & D project performance”, Journal of Business Venturing, Vol. 27 No. 2, pp. 167-184.
14. Brews, P.J. and Hunt, M.R. (1999), “Learning to plan and planning to learn: resolving the planning school/learning school debate”, Strategic Management Journal, Vol. 20 No. 10, pp. 889-913.
15. Bridoux, F., Smith, K.G. and Grimm, C.M. (2013), “The management of resources temporal effects of different types of actions on performance”, Journal of Management, Vol. 39 No. 4, pp. 928-957.
16. Cai, H., Xu, L., Xu, B. and Xie, C. (2014), “IoT-based configurable information service platform for product lifecycle management”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1558-1567.
17. Carnes, C.M. and Ireland, R.D. (2013), “Familiness and innovation: resource bundling as the missing link”, Entrepreneurship Theory and Practice, Vol. 37 No. 6, pp. 1399-1419.
18. Certo, S.T., Covin, J.G., Daily, C.M. and Dalton, D.R. (2001), “Wealth and the effects of founder management among IPO-stage new ventures”, Strategic Management Journal, Vol. 22 Nos 6-7, pp. 641-658.
19. Chaganti, R.R.S., Watts, A.D., Chaganti, R. and Zimmerman-Treichel, M. (2008), “Ethnic-immigrants in founding teams: effects on prospector strategy and performance in new internet venture”, Journal of Business Venturing, Vol. 23 No. 1, pp. 113-139.
20. Chandler, G.N., DeTienne, D.R., McKelvie, A. and Mumford, T.V. (2011), “Effectuation and causation processes: a validation study”, Journal of Business Venturing, Vol. 26 No. 3, pp. 375-390.
21. Chi, Q., Yan, H. and Zhang, C. (2014), “A reconfigurable smart sensor interface for industrial WSN in IoT environment”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1417-1425.
22. Coetzee, L. and Eksteen, J. (2011), “The internet of things-promise for the future? An introduction”, IST-Africa Conference Proceedings, IEEE, Pretoria, pp. 1-9.
23. Combs, J.G., Ketchen, D.J. Jr, Ireland, R.D. and Webb, J.W. (2011), “The role of resource flexibility in leveraging strategic resources”, Journal of Management Studies, Vol. 48 No. 5, pp. 1098-1125.
24. Daniel, E.M., Di Domenico, M.L. and Sharma, S. (2014), “Effectuation and home-based online business entrepreneurs”, International Small Business Journal, Vol. 33 No. 8, pp. 799-823.
25. Delmar, F. and Shane, S. (2003), “Does business planning facilitate the development of new ventures?”, Strategic Management Journal, Vol. 24 No. 12, pp. 1165-1185.
26. Dew, N., Read, S., Sarasvathy, S.D. and Wiltbank, R. (2009b), “Effectual versus predictive logics in entrepreneurial decision-making: differences between experts and novices”, Journal of Business Venturing, Vol. 24 No. 4, pp. 287-309.
27. Dew, N., Sarasathy, S., Read, S. and Wiltbank, R. (2009a), “Affordable loss: behavioral economic aspects of the plunge decision”, Strategic Entrepreneurship Journal, Vol. 3 No. 2, pp. 105-126.
28. Fan, Y., Yin, Y., Xu, L. and Zeng, Y. (2014), “IoT based smart rehabilitation system”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1568-1577.
29. Fang, S., Xu, L., Pei, H. and Liu, Y. (2014a), “An integrated approach to snowmelt flood forecasting in water resource management”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 1, pp. 548-558.
30. Fang, S., Xu, L., Zhu, Y. and Ahati, J. (2014b), “An integrated system for regional environmental monitoring and management based on internet of things”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1596-1605.
31. Fang, S., Xu, L., Zhu, Y., Liu, Y., Liu, Z., Pei, H., Yan, J. and Zhang, H. (2015), “An integrated information system for snowmelt flood early-warning based on internet of things”, Information Systems Frontiers, Vol. 17 No. 2, pp. 321-335.
32. Fisher, G. (2012), “Effectuation, causation, and bricolage: a behavioral comparison of emerging theories in entrepreneurship research”, Entrepreneurship Theory and Practice, Vol. 36 No. 5, pp. 1019-1051.
33. Gedajlovic, E., Cao, Q. and Zhang, H. (2012), “Corporate shareholdings and organizational ambidexterity in high-tech SMEs: evidence from a transitional economy”, Journal of Business Venturing, Vol. 27 No. 6, pp. 652-665.
34. Gilbert, B.A., McDougall, P.P. and Audretsch, D.B. (2006), “New venture growth: a review and extension”, Journal of Management, Vol. 32 No. 6, pp. 926-950.
35. Hamilton, R.H. (2001), “E-commerce new venture performance: how funding impacts culture”, Internet Research, Vol. 11 No. 4, pp. 277-285.
36. Harrison, J.S., Hitt, M.A., Hoskisson, R.E. and Ireland, R.D. (2001), “Resource complementarity in business combinations: extending the logic to organizational alliances”, Journal of Management, Vol. 27 No. 6, pp. 679-690.
37. He, W., Yan, G. and Xu, L. (2014), “Developing vehicular data cloud services in the IoT environment”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1587-1595.
38. Hitt, M.A., Ireland, R.D., Sirmon, D.G. and Trahms, C.A. (2011), “Strategic entrepreneurship: creating value for individuals, organizations, and society”, Academy of Management Perspectives, Vol. 25 No. 2, pp. 57-75.
39. Honig, B. and Samuelsson, M. (2012), “Planning and the entrepreneur: a longitudinal examination of nascent entrepreneurs in Sweden”, Journal of Small Business Management, Vol. 50 No. 3, pp. 365-388.
40. Ireland, R.D., Hitt, M.A. and Sirmon, D.G. (2003), “A model of strategic entrepreneurship: the construct and its dimensions”, Journal of Management, Vol. 29 No. 6, pp. 963-989.
41. Jiang, L., Xu, L., Cai, H. and Jiang, Z. (2014), “An IoT oriented data storage framework in cloud computing platform”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1443-1451.
42. Kang, K., Pang, Z., Xu, L. and Ma, L. (2014), “An interactive trust model for application market of the internet of things”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1516-1526.
43. Knaup, A.E. and Piazza, M.C. (2007), “Business employment dynamics data: survival and longevity, II”, Monthly Labor Review, Vol. 130, September, pp. 3-10.
44. Kor, Y.Y. and Mahoney, J.T. (2004), “Edith Penrose’s (1959) contributions to the resource-based view of strategic management”, Journal of Management Studies, Vol. 41 No. 1, pp. 183-191.
45. Larrañeta, B., Zahra, S.A. and González, J.L.G. (2014), “Strategic repertoire variety and new venture growth: the moderating effects of origin and industry dynamism”, Strategic Management Journal, Vol. 35 No. 5, pp. 761-772.
46. Li, S., Xu, L. and Wang, X. (2013), “Compressed sensing signal and data acquisition in wireless sensor networks and internet of things”, IEEE Transactions on Industrial Informatics, Vol. 9 No. 4, pp. 2177-2186.
47. Li, S., Xu, L. and Zhao, S. (2014/2015), “The internet of things: a survey”, Information Systems Frontiers, Vol. 17 No. 2, pp. 243-259.
48. Li, S., Oikonomou, G., Tryfonas, T. and Chen, T. (2014), “A distributed consensus algorithm for decision-making in service-oriented internet of things”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1461-1468.
49. Li, Y., Hou, M., Liu, H. and Liu, Y. (2012), “Towards a theoretical framework of strategic decision, supporting capability and information sharing under the context of internet of things”, Information Technology and Management, Vol. 13 No. 4, pp. 205-216.
50. Lu, Y., Tsang, E.W.K. and Peng, M.W. (2008), “Knowledge management and innovation strategy in the Asia Pacific: toward an institution-based view”, Asia Pacific Journal of Management, Vol. 25 No. 3, pp. 361-374.
51. McDougall, P.P., Robinson, R.B. Jr and DeNisi, A.S. (1992), “Modeling new venture performance: an analysis of new venture strategy, industry structure, and venture origin”, Journal of Business Venturing, Vol. 7 No. 4, pp. 267-289.
52. Maine, E., Soh, P.H. and Dos, S.N. (2014), “The role of entrepreneurial decision-making in opportunity creation and recognition”, Technovation, Vols 39-40, pp. 53-72.
53. March, J. (1991), “Exploration and exploitation in organizational learning”, Organization Science, Vol. 2 No. 1, pp. 71-87.
54. Milanov, H. and Fernhaber, S.A. (2009), “The impact of early imprinting on the evolution of new venture networks”, Journal of Business Venturing, Vol. 24 No. 1, pp. 46-61.
55. Mintzberg, H. (1978), “Patterns in strategy formation”, Management Science, Vol. 24 No. 9, pp. 934-948.
56. Neter, J., Kutner, M.H., Nachtsheim, C.J. and Wasserman, W. (1996), Applied Linear Statistical Models, 4th ed., WCB/McGraw-Hill, Boston, MA.
57. Nicholls-Nixon, C.L., Cooper, A.C. and Woo, C. (2000), “Strategic experimentation: understanding change and performance in new ventures”, Journal of Business Venturing, Vol. 15 Nos 5-6, pp. 493-521.
58. Nunnally, J. (1978), Psychometric Theory, 2nd ed., McGraw-Hill Book Company, New York, NY.
59. Penney, C.R. and Combs, J.G. (2013), “Insights from family science: the case of innovation”, Entrepreneurship Theory and Practice, Vol. 37 No. 6, pp. 1421-1427.
60. Penrose, E.T. (1959), The Theory of the Growth of the Firm, Wiley, New York, NY.
61. Perry, J.T., Chandler, G.N. and Markova, G. (2012), “Entrepreneurial effectuation: a review and suggestions for future research”, Entrepreneurship Theory and Practice, Vol. 36 No. 4, pp. 837-861.
62. Read, S. and Sarasvathy, S.D. (2005), “Knowing what to do and doing what you know: effectuation as a form of entrepreneurial expertise”, The Journal of Private Equity, Vol. 9 No. 1, pp. 45-62.
63. Riquelme, H. (2002), “Commercial internet adoption in China: comparing the experience of small, medium and large businesses”, Internet Research, Vol. 12 No. 3, pp. 276-286.
64. Sarasvathy, S.D. (2001), “Effectuation and causation: towards a theoretical shift from economic inevitability to entrepreneurial contingency”, Academy of Management Review, Vol. 26 No. 2, pp. 243-288.
65. Sarasvathy, S.D. (2004), “The questions we ask and the questions we care about: reformulating some problems in entrepreneurship research”, Journal of Business Venturing, Vol. 19 No. 5, pp. 707-717.
66. Sarasvathy, S.D. and Dew, N. (2005), “New market creation through transformation”, Journal of Evolutionary Economics, Vol. 15 No. 5, pp. 533-565.
67. Sarasvathy, S.D., Kumar, K., York, J.G. and Bhagavatula, S. (2014), “An effectual approach to international entrepreneurship: overlaps, challenges, and provocative possibilities”, Entrepreneurship Theory and Practice, Vol. 38 No. 1, pp. 71-93.
68. Shinkle, G.A. and Kriauciunas, A.P. (2012), “The impact of current and founding institutions on strength of competitive aspirations in transition economies”, Strategic Management Journal, Vol. 33 No. 4, pp. 448-458.
69. Sirmon, D.G., Hitt, M.A. and Ireland, R.D. (2007), “Managing firm resources in dynamic environments to create value: looking inside the black box”, Academy of Management Review, Vol. 32 No. 1, pp. 273-292.
70. Sirmon, D.G., Hitt, M.A., Ireland, R.D. and Gilbert, B.A. (2011), “Resource orchestration to create competitive advantage breadth, depth, and life cycle effects”, Journal of Management, Vol. 37 No. 5, pp. 1390-1412.
71. Smallbone, D. and Welter, F. (2001), “The distinctiveness of entrepreneurship in transition economies”, Small Business Economics, Vol. 16 No. 4, pp. 249-262.
72. Stinchcombe, A. (1965), “Organizational and social structure”, in March, J.G. (Ed.), Handbook of Organizations, Rand-McNally, Chicago, IL, pp. 142-155.
73. Su, Z., Li, J., Yang, Z. and Li, Y. (2011), “Exploratory learning and exploitative learning in different organizational structures”, Asia Pacific Journal of Management, Vol. 28 No. 4, pp. 697-714.
74. Tan, J. (2005), “Venturing in turbulent water: a historical perspective of economic reform and entrepreneurial transformation”, Journal of Business Venturing, Vol. 20 No. 5, pp. 689-704.
75. Tao, F., Cheng, Y., Xu, L. and Zhang, L. (2014a), “CCIoT-CMfg: cloud computing and internet of things based cloud manufacturing service system”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1435-1442.
76. Tao, F., Zuo, Y., Xu, L. and Lv, L. (2014b), “Internet of things and BOM based life cycle assessment of energy-saving and emission-reduction of product”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1252-1261.
77. Tao, F., Zuo, Y., Xu, L. and Zhang, L. (2014c), “IoT based intelligent perception and access of manufacturing resource towards cloud manufacturing”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1547-1557.
78. Venkataraman, S. and Sarasvathy, S. (2001), “Strategy and entrepreneurship: outlines of an untold story”, in Hitt, M.A., Freeman, E. and Harrison, J.S. (Eds), Blackwell Handbook of Strategic Management, Blackwell Publishing, Oxford, pp. 650-668.
79. Wang, C., Bi, Z. and Xu, L. (2014a), “IoT and cloud computing in automation of assembly modeling systems”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1426-1434.
80. Wang, L., Xu, L., Bi, Z. and Xu, Y. (2014b), “Data cleaning for RFID and WSN integration”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 1, pp. 408-418.
81. Webb, J.W., Bruton, G.D., Tihanyi, L. and Ireland, R.D. (2013), “Research on entrepreneurship in the informal economy: framing a research agenda”, Journal of Business Venturing, Vol. 28 No. 5, pp. 598-614.
82. Weick, K.E. (1979), The Social Psychology of Organizing, Addison-Wesley, Reading, MA.
83. Whitmore, A., Agarwal, A. and Xu, L. (2015), “The internet of things-a survey of topics and trends”, Information Systems Frontiers, Vol. 17 No. 2, pp. 261-274.
84. Wiltbank, R., Dew, N., Read, S. and Sarasvathy, S. (2006), “What to do next? The case for non-predictive strategy”, Strategic Management Journal, Vol. 27 No. 10, pp. 981-998.
85. Wright, M. and Stigliani, I. (2013), “Entrepreneurship and growth”, International Small Business Journal, Vol. 31 No. 1, pp. 3-22.
86. Xia, F., Yang, L.T., Wang, L. and Vinel, A. (2012), “Internet of things”, International Journal of Communication Systems, Vol. 2 No. 9, pp. 1101-1102.
87. Xu, B., Xu, L., Cai, H. and Xie, C. (2014), “Ubiquitous data accessing method in IoT-based information system for emergency medical services”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 2, pp. 1578-1586.
88. Xu, L. (2011), “Enterprise systems: state-of-the-art and future trends”, IEEE Transactions on Industrial Informatics, Vol. 7 No. 4, pp. 630-640.
89. Xu, L., He, W. and Li, S. (2014), “Internet of things in industries: a survey”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 4, pp. 2233-2248.
90. Yamakawa, Y., Khavul, S., Peng, M.W. and Deeds, D.L. (2013), “Venturing from emerging economies”, Strategic Entrepreneurship Journal, Vol. 7 No. 3, pp. 181-196.
91. Yang, G., Xie, L., Mantysalo, M. and Zhou, X. (2014), “A health-IoT platform based on the integration of intelligent packaging, unobtrusive bio-sensor and intelligent medicine box”, IEEE Transactions on Industrial Informatics, Vol. 10 No. 4, pp. 2180-2191.
92. Zahra, S.A. (1996), “Technology strategy and new venture growth: a study of corporate-sponsored and independent biotechnology ventures”, Journal of Business Venturing, Vol. 11 No. 4, pp. 289-321.
93. Zahra, S.A. (2012), “Organizational learning and entrepreneurship in family firms: exploring the moderating effect of ownership and cohesion”, Small Business Economics, Vol. 38 No. 1, pp. 51-65.
94. Zahra, S.A., Ireland, R.D. and Hitt, M.A. (2000), “International expansion by new venture firms: international diversity, mode of market entry, technological learning, and performance”, Academy of Management Journal, Vol. 43 No. 5, pp. 925-950.
95. Zhong, Y., Jin, L. and Chen, X. (2012), “Relationship between decision styles and decision types for innovative opportunities: empirical study on Chinese internet of things industry and the cognitive decision support approach”, Journal of Computers, Vol. 7 No. 7, pp. 1574-1582.
96. Zou, H., Chen, X. and Ghauri, P. (2010), “Antecedents and consequences of new venture growth strategy: an empirical study in China”, Asia Pacific Journal of Management, Vol. 27 No. 3, pp. 393-421.
97. Berends, H., Jelinek, M., Reymen, I. and Stultiëns, R. (2014), “Product innovation processes in small firms: combining entrepreneurial effectuation and managerial causation”, Journal of Product Innovation Management, Vol. 31 No. 3, pp. 616-635.
98. Dess, G.G. and Beard, D.W. (1984), “Dimensions of organizational task environments”, Administrative Science Quarterly, Vol. 29 No. 1, pp. 52-73.
99. Eddleston, K.A., Kellermanns, F.W. and Sarathy, R. (2008), “Resource configuration in family firms: linking resources, strategic planning and technological opportunities to performance”, Journal of Management Studies, Vol. 45 No. 1, pp. 26-50.
100. Hitt, M.A., Li, H. and Worthington, W.J. (2005), “Emerging markets as learning laboratories: learning behaviors of local firms and foreign entrants in different institutional contexts”, Strategic Management Journal, Vol. 1 No. 3, pp. 353-380.
101. Lau, C.-M. (2011), “Team and organizational resources, strategic orientations, and firm performance in a transitional economy”, Journal of Business Research, Vol. 64 No. 12, pp. 1344-1351.
102. Li, H. and Zhang, Y. (2007), “The role of managers’ political networking and functional experience in new venture growth: evidence from China’s transition economy”, Strategic Management Journal, Vol. 28 No. 8, pp. 791-804.
103. Miller, D. and Friesen, P.H. (1984), “A longitudinal study of the corporate life cycle”, Management Science, Vol. 30 No. 2, pp. 1161-1183.
104. Strauss, A. and Corbin, J. (1998), Basics of Qualitative Research: Procedures and Techniques for Developing Grounded Theory, 2nd ed., Sage, Thousand Oaks, CA.
105. Yu, J., Zhou, J.D., Wang, Y. and Xi, Y. (2013), “Rural entrepreneurship in an emerging economy: reading institutional perspectives from entrepreneur stories”, Journal of Small Business Management, Vol. 51 No. 2, pp. 183-195.