Effectuation, Exploratory Learning and New Venture Performance: Evidence from China*^*

* The authors are grateful for the generous financial supports of National Natural Science Foundation of China (NSFC) (Grant No.71232011) and Jilin University Basic Scientific Research Grant for Philosophy and Society Research (Grant No. 2016BS009). They are also grateful to Professor Shaker A. Zahra, University of Minnesota, for his helpful comments on this paper.

Abstract

This paper examines the effect of effectuation on new venture performance in the context of Chinese transitional economy. To determine how new ventures benefit from effectuation, we examine the role of exploratory learning as a key mediator. Using data from 266 Chinese new ventures, our results show that effectuation has a positive effect on new venture performance. Exploratory learning plays a fully mediating role in the relationship between effectuation and new venture performance. This empirical evidence contributes to the development of the theory of effectuation and also provides managerial guidelines for new ventures facing uncertain business environments like transitional economies.

* The authors are grateful for the generous financial supports of National Natural Science Foundation of China (NSFC) (Grant No.71232011) and Jilin University Basic Scientific Research Grant for Philosophy and Society Research (Grant No. 2016BS009). They are also grateful to Professor Shaker A. Zahra, University of Minnesota, for his helpful comments on this paper.

* The authors are grateful for the generous financial supports of National Natural Science Foundation of China (NSFC) (Grant No.71232011) and Jilin University Basic Scientific Research Grant for Philosophy and Society Research (Grant No. 2016BS009). They are also grateful to Professor Shaker A. Zahra, University of Minnesota, for his helpful comments on this paper.

Notes

* The authors are grateful for the generous financial supports of National Natural Science Foundation of China (NSFC) (Grant No.71232011) and Jilin University Basic Scientific Research Grant for Philosophy and Society Research (Grant No. 2016BS009). They are also grateful to Professor Shaker A. Zahra, University of Minnesota, for his helpful comments on this paper.