DYNAMICS OF ENTREPRENEURIAL PROCESSES AND DECISION MAKING USING EFFECTUATION AND CAUSATION APPROACH IN NEW VENTURE CREATION

• Main Author: Taksoko Sumadiyo, Arryo
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72866
• Institution: Institut Teknologi Bandung

This study explores the dynamics of effectuation and causation approach, a theory posited by Sarasvathy as a method of entrepreneurial decision making processes, in new ventures. Using a qualitative method, This study analyzes 9 different new ventures that were created by SBM ITB class of 2021 fresh graduates. We note the numerous factors that affect their entrepreneurial process in using either approach. With New Venture Creation phases as a pinpoint for their decision making events, This study differentiate their actions taken as well as their reasonings to either effectuation or causation approach based on the established core differential principles or aspects of effectuation or causation approach. Then we also take notes of the implications they had experienced after utilizing either approach in their action. This study found that Intuition, Education, Social Network, Role Model, and Availability of Land and Resources presents as the most notable factors that influenced the respondents. The extent of effectuation and causation approach affects all new venture creation phases. Moreover, the implications of employing effectuation and causation approaches are experienced by the respondents as advantages or disadvantages in facing a situation in their venture though direct correlation to the venture itself isn’t known.