Expect the unexpected: examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis

Anastasiia Laskovaia, Louis Marino, Galina Shirokova, William Wales

Research output

2 Citations (Scopus)

Abstract

While many firms operate in dynamic environments, the competitive conditions faced by firms during an economic crisis are especially unstable and turbulent. We examine firm strategic decision-making in this distinctive context and investigate the question of whether causal and effectual logic provide similar paths to performance during such challenging economic times. Further, we examine the potential impact that a firm’s level of entrepreneurial orientation (EO) has upon the relationship between managers’ predominant decision-making logic and their firm’s overall performance in this crisis. To test these relationships, we employ a robust national random sample of 447 Russian small and medium-sized enterprises (SMEs) collected from 2015 to 2016 during a period of economic crisis. Our results indicate that EO plays an important moderating role, shaping the nature of the relationships between managers’ decision-making logic and financial performance. Moreover, additional analysis identifies the presence of a non-linear relationship between both logics and the performance of SMEs.

Original languageEnglish
JournalEntrepreneurship and Regional Development
DOIs
Publication statusE-pub ahead of print - 1 Nov 2018

Fingerprint

Economic crisis
Logic
Decision making
Entrepreneurial orientation
Small and medium-sized enterprises
Managers
Dynamic environment
Firm performance
Financial performance
Economics
Nonlinear relationships
Strategic decision making

Scopus subject areas

  • Business and International Management
  • Economics and Econometrics

Cite this

@article{7c7bed139eab418aae89771a86541f8d,
title = "Expect the unexpected: examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis",
abstract = "While many firms operate in dynamic environments, the competitive conditions faced by firms during an economic crisis are especially unstable and turbulent. We examine firm strategic decision-making in this distinctive context and investigate the question of whether causal and effectual logic provide similar paths to performance during such challenging economic times. Further, we examine the potential impact that a firm’s level of entrepreneurial orientation (EO) has upon the relationship between managers’ predominant decision-making logic and their firm’s overall performance in this crisis. To test these relationships, we employ a robust national random sample of 447 Russian small and medium-sized enterprises (SMEs) collected from 2015 to 2016 during a period of economic crisis. Our results indicate that EO plays an important moderating role, shaping the nature of the relationships between managers’ decision-making logic and financial performance. Moreover, additional analysis identifies the presence of a non-linear relationship between both logics and the performance of SMEs.",
keywords = "causation, economic crisis, Effectuation, entrepreneurial orientation, firm performance, Russia, SCOPUS, SCOPUS",
author = "Anastasiia Laskovaia and Louis Marino and Galina Shirokova and William Wales",
note = "Expect the unexpected: examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis / A. Laskovaia, L. Marino, G. Shirokova, W. Wales // Entrepreneurship and Regional Development. – 2018. - Volume N/A. – P. N/A.",
year = "2018",
month = "11",
day = "1",
doi = "10.1080/08985626.2018.1541593",
language = "English",
journal = "Entrepreneurship and Regional Development",
issn = "0898-5626",
publisher = "Routledge",

}

TY - JOUR

T1 - Expect the unexpected

T2 - examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis

AU - Laskovaia, Anastasiia

AU - Marino, Louis

AU - Shirokova, Galina

AU - Wales, William

N1 - Expect the unexpected: examining the shaping role of entrepreneurial orientation on causal and effectual decision-making logic during economic crisis / A. Laskovaia, L. Marino, G. Shirokova, W. Wales // Entrepreneurship and Regional Development. – 2018. - Volume N/A. – P. N/A.

PY - 2018/11/1

Y1 - 2018/11/1

N2 - While many firms operate in dynamic environments, the competitive conditions faced by firms during an economic crisis are especially unstable and turbulent. We examine firm strategic decision-making in this distinctive context and investigate the question of whether causal and effectual logic provide similar paths to performance during such challenging economic times. Further, we examine the potential impact that a firm’s level of entrepreneurial orientation (EO) has upon the relationship between managers’ predominant decision-making logic and their firm’s overall performance in this crisis. To test these relationships, we employ a robust national random sample of 447 Russian small and medium-sized enterprises (SMEs) collected from 2015 to 2016 during a period of economic crisis. Our results indicate that EO plays an important moderating role, shaping the nature of the relationships between managers’ decision-making logic and financial performance. Moreover, additional analysis identifies the presence of a non-linear relationship between both logics and the performance of SMEs.

AB - While many firms operate in dynamic environments, the competitive conditions faced by firms during an economic crisis are especially unstable and turbulent. We examine firm strategic decision-making in this distinctive context and investigate the question of whether causal and effectual logic provide similar paths to performance during such challenging economic times. Further, we examine the potential impact that a firm’s level of entrepreneurial orientation (EO) has upon the relationship between managers’ predominant decision-making logic and their firm’s overall performance in this crisis. To test these relationships, we employ a robust national random sample of 447 Russian small and medium-sized enterprises (SMEs) collected from 2015 to 2016 during a period of economic crisis. Our results indicate that EO plays an important moderating role, shaping the nature of the relationships between managers’ decision-making logic and financial performance. Moreover, additional analysis identifies the presence of a non-linear relationship between both logics and the performance of SMEs.

KW - causation

KW - economic crisis

KW - Effectuation

KW - entrepreneurial orientation

KW - firm performance

KW - Russia

KW - SCOPUS

KW - SCOPUS

UR - http://www.scopus.com/inward/record.url?scp=85056077170&partnerID=8YFLogxK

U2 - 10.1080/08985626.2018.1541593

DO - 10.1080/08985626.2018.1541593

M3 - Article

AN - SCOPUS:85056077170

JO - Entrepreneurship and Regional Development

JF - Entrepreneurship and Regional Development

SN - 0898-5626

ER -