Effectuation or causation to promote innovation in technology-based SMEs? The effects of strategic decision-making logics

ABSTRACT

For technology-based SMEs, with severe resource restrictions, tackling the innovative dynamics successfully is a major challenge. Given the uncertainty of the process and the environment these firms face greater difficulties in their decision-making process. Effectuation and causation are two decision-making logics for situations of uncertainty that have recently been employed in the scope of innovation in SMEs. Although some studies have made important contributions, they have also revealed several gaps in the research. Our study seeks to address these gaps by analysing empirically the value of effectual and causal decision-making logic for innovation in technology-sector SMEs through these logics’ dimensions. Our results reveal that both effectuation and causation influence innovation through some of their dimensions.

KEYWORDS:

• Innovation
• effectuation
• entrepreneurship
• SMEs

Acknowledgements

This research was supported by the Spanish Ministry of Economy, Industry, and Competitiveness (Ref.: ECO2016-80677-R) and European Union (FEDER Grant).

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 SABI is one of the most representative databases on companies in Spain. As of 2018, it stored information on approximately 1.6 million companies. According to the National Institute of Statistics, its records represent over 50% of the total population of Spanish companies (3.2 million).

Additional information

Funding

This research was supported by the Spanish Ministry of Economy, Industry, and Competitiveness (Ref.: ECO2016-80677-R) and European Union (FEDER Grant).

Notes on contributors

Jessica Alzamora-Ruiz

Jessica Alzamora-Ruiz is a Phd (c) at the University of Granada. She has published articles in academic journals and books. Her contributions (articles and books) are focused on Entrepreneurial activity, Entrepreneurial behaviour, Strategic decision making and Innovation in SMEs.

María del Mar Fuentes-Fuentes

María del Mar Fuentes-Fuentes is a Full Professor of Business Management department at the University of Granada, specialised in Entrepreneurship. She has published articles in representative academic journals, books and conference proceedings focus on Entrepreneurship, New venture creation and Strategic capabilities. Maria del Mar holds a Ph.D. degree in Economics and Management from University of Granada.

Myriam Martinez-Fiestas

Myriam Martinez Fiestas is an Assistant Professor at the University of Granada. Her main research interests are in the fields of Entrepreneurial behaviour, Consumer Behavior and Neuromarketing. She has published her research work in several representative academic journals. Myriam holds a Ph.D. in Business Sciences from University of Granada.