Effectuation or causation? : A study on expert start-up advice

Abstract: The recent increase in effectuation research shows the popularity and potential of this body of knowledge. This new paradigm is trying to challenge the established traditional causal knowledge, taught in many MBA and higher education courses. As attractive as effectuation- might be, it is necessary to acknowledge the importance of the traditional knowledge, such as causation. In this study we focus on understanding how expert entrepreneurs -those individuals who deal and use these effectuation and causation dimensions in their daily routines- give advice to new upcoming entrepreneurs, in addition to investigating if and how they combine both dimensions in their decision-making advice to achieve more well-rounded and supported recommendations. This was done in this empirical study through the exploratory analysis of internet sourced interviews with expert entrepreneurs about how to become an entrepreneur or how to start a business. We find that expert entrepreneurs tend to give advice to new entrepreneurs in an effectual manner. Furthermore, our study contributes to extent knowledge by offering a new approach to effectual studies based on previously validated methods with the introduction of a new database and perspective. In addition, we explore the distribution within the entrepreneurial population when it comes to advice-giving.