Extending constructivist perspectives on opportunity production through an incorporation of effectual logics

Abstract

Current constructivist theorizing relies heavily on causal logics and, therefore, posits that entrepreneurs either pursue or abandon perceived opportunities shortly after their inception. However, findings from effectuation research illuminate less-direct processes involved in the establishment of entrepreneurial ventures. We describe how effectual and causal logics might be integrated by proposing a supplemented model of entrepreneurial opportunity production that features an alternative effectual pathway. In describing this model, we develop six propositions to explain the unique pattern of cognitions and behaviors found among entrepreneurs employing effectual logics. Our propositions suggest that these entrepreneurs are unlikely to rely on peer feedback to determine the viability of early stage opportunities. Instead, they delay the objectification and evaluation of opportunities because they recognize that predictions made in uncertain environments are unlikely to be correct. The employment of these alternate logics results in different pathways to commercialization and different consequences associated with failures.