An Empirical Study On Effectuation Logic Of Novice Entrepreneurs

Effectuation theory proposed by Sarasvathy brings the theoretic breakthrough ofentrepreneurship research and the transformation of entrepreneurship education. Bothacademics and practitioners have recognized the importance of effectuation theory,nevertheless, the effectuation research is still in its infancy stage which characterized byopen questions, qualitative research method and theory frame extension. Further more,quantitative research on effectuation theory is rare and there is still no widely acceptedmeasurement model. On the other hand, effectuation theory is originated from expertentrepreneurs, and effectuation logic is recognized as a form of expertise. It is unclear thatwhether novice entrepreneurs can benefit from the use of effectuation principles,what arethe factors that influence effectuation choice,and from which aspects can entrepreneurshipeducation change the decision model of novice entrepreneurs.For these reason, this paper takes novice entrepreneurs as the research object. Based onthe China Panel Study of Entrepreneurial Dynamics longitudinal data, this paper reconstructthe effectuation dimensions, putting effectuation under the framework of formativemeasurement model. Furthermore, this paper explores the use of effectuation for newventure effectiveness, and the main cognitive factors affecting the novice entrepreneurs touse effectuation logic.Based on the repeated indicator approach of least squares structural equationmodeling,this research shows that the novice entrepreneurs using effectuation logic canincrease the concentration of create activities, but delay the first sales of the new venture.To weaken or eliminate the environment uncertainty is the leading cause of adoptingeffectuation logic.As far as entrepreneurship education is concerned, cultivatingentrepreneurs’ entrepreneurial self-efficacy and entrepreneurial alertness can improve theuse of effectuation logic.This research not only deepens the research content of effectuation theory, but alsoprovides practise directive significance for entrepreneurship education on noviceentrepreneurs.