The Journal of the Convergence on Culture Technology (문화기술의 융합)

The International Promotion Agency of Culture Technology (국제문화기술진흥원)
권호 표지
DOI QR코드

DOI QR Code

Implication of Effectuation Theory related to Affordable Loss Concept

Affordable Loss 개념을 중심으로 한 The Effectuation Theory의 함의

  • 이석희 (가톨릭대학교 경영학과) ;
  • 김병조 (가톨릭대학교 경영학과)
  • Received : 2024.03.04
  • Accepted : 2024.04.20
  • Published : 2024.05.31
Download PDF
⟨ Previous Next ⟩

Abstract

This study examines whether startup firms start with the resources they already have and expand the resources they can mobilize in the process of business management (Effectuation Model) using public data provided by the government. The results of the study show that the Effectuation Model can partially explain the behavior of early-stage startup firms. Therefore, in terms of policy implications based on these findings, government policies for entrepreneurship should not be based on the selection of companies based on sophisticated business models and hypothetical profit models, but rather on a system that actively supports entrepreneurship in areas that are challenging, even if they seem somewhat reckless at the moment, or that best match the entrepreneur's knowledge. Next, in order to actively spread entrepreneurship, it is necessary to spread business history or entrepreneurial experience. To this end, it is necessary to drastically change the current financial system for startups, where the founder bears all the financial risk, and to more actively consider ways to reduce the risk of startups by allowing society and the financial system to share some of the risk of startups.

본 연구는 Startup 기업들이 기업 경영과정에서 동원 가능한 자원을 확대하는지(Effectuation Model)를 정부가 제공하는 공공데이터를 가지고 기업 활동을 영위하는 스타트업 기업들을 대상으로 연구하였다. 연구 결과에 따르면, 부분적으로 Effectuation 모델이 창업 초기 기업들의 행태를 설명할 수 있는 가능성을 보여주고 있다. 따라서 이러한 연구결과에 기초한 정책적 시사점을 살펴보면, 앞으로 창업을 위한 정부 정책은 정교한 비즈니스 모델과 가상의 수익 모델에 기초한 기업 선정이 아니라, 현재는 다소 무모해보이더라도 도전적인 아이템이거나, 창업자의 지식과 가장 부합하는 영역의 창업을 적극 지원하는 제도로 방향을 맞출 필요가 있다. 다음으로, 적극적인 창업의 확산을 위해서는 업력, 혹은 창업 경험을 확산시킬 필요가 있다는 점이다. 이를 위해서는 창업자가 모든 금융 위험을 부담하는 형태를 가지고 있는 현재의 창업 관련 금융제도를 과감하게 전환하여 사회와 창업 관련 금융이관이 창업의 위험 일부를 공유하도록 함으로써, 창업의 위험을 줄여주는 방안을 더욱 적극적으로 검토할 필요가 있다.

Keywords

References

  1. Arend, R. J., Sarooghi, H., &Burkemper, A. (2015). Effectuation as ineffectual? Applying the 3e theoryassessment framework to a proposed new theory of entrepreneurship. Academy of Management Review, 40, 630-651
  2. Brettel, M., R. Mauer, A. Engelen, and D. Kupper. 2012. "Corporate Effectuation: Entrepreneurial Action and its Impact on R&D Project Performance." Journal of Business Venturing 27 (2): 167-84
  3. Cai, L., Runping, G., Fei, Y., & Liu, Z. (2016). Effectuation, exploratory learning and new venture performance: evidence from China. Journal of Small Business Management
  4. Chandler, G., DeTienne, D., McKelvie, A. and Mumford, T. (2011), "Causation and effectuation processes: a validation study", Journal of Business Venturing, Vol. 26 No. 3, pp. 375-380. https://doi.org/10.1016/j.jbusvent.2009.10.006
  5. Chandler, G.N. and Lyon, D.W. (2001), "Issues of research design and construct measurement in entrepreneurship research: the past decade", Entrepreneurship Theory and Practice, Vol. 25 No. 4, pp. 101-113. https://doi.org/10.1177/104225870102500407
  6. Dew, N. and Sarasvathy, S. (2002), "What effectuation is not: further development of an alternative to rational choice", paper presented at the Annual Meeting of the Academy of Management, Denver, CO.
  7. Dew, N., Read, S, Sarasvathy, S.D. and Wiltbank, R. (2011), "On the entrepreneurial genesis of new markets: effectual transformations versus causal search", Journal of Evolutionary Economics, Vol. 21 No. 2, pp. 231-253.
  8. Dew, N., Read, S., Sarasvathy, S.D. and Wiltbank, R. (2009), "Effectual versus predictive logics in entrepreneurial decision-making: differences between experts and novices", Journal of Business Venturing, Vol. 24 No. 4, pp. 287-309. https://doi.org/10.1016/j.jbusvent.2008.02.002
  9. Dew, Sarasbathy, Read & Wiltbank(2009), Affordable Loss: Behavioral Economic Aspects of the Plunge Decision, Strategic Entrepreneurship Journal
  10. Edmondson, A. C., & McManus, S. E. (2007). Methodological fit in management field research. Academy of management review, 32(4), 1246-1264. https://doi.org/10.5465/amr.2007.26586086
  11. Fischer, E. and Reuber, R. (2011), "Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?", Journal of Business Venturing, Vol. 26 No. 1, pp. 1-18. https://doi.org/10.1016/j.jbusvent.2010.09.002
  12. Fisher, G. (2012), "Effectuation, causation, and bricolage: a behavioral comparison of emerging theories in entrepreneurship research", Entrepreneurship Theory and Practice, Vol. 36 No. 5, pp. 1019-1051. https://doi.org/10.1111/j.1540-6520.2012.00537.x
  13. Goh, Tae-kyung (July 2017), Status of delisting in the stock market and KOSDAQ market over the past five years, CGS Report, Korea Corporate Governance Service
  14. Knight, F.H. (1921), Risk, Uncertainty, and Profit, Houghton Mifflin, New York, NY.
  15. March, J. (1982), "Theories of choice and making decisions", Society, Vol. 20, pp. 29-38. https://doi.org/10.1007/BF02694989
  16. March, J. and Simon, H. (1958), Organizations, Wiley, Oxford.
  17. March, J.G. (1991), "Exploration and exploitation in organizational learning", Organization science, Vol. 2 No. 1, pp. 71-87. https://doi.org/10.1287/orsc.2.1.71
  18. Martina, R. A. (2020). Toward a theory of affordable loss. Small Business Economics, 54(3), 751-774. https://doi.org/10.1007/s11187-019-00151-y
  19. Matalamaki, M(2017), Effectuation, an Emerging theory of Entrepreneurship - towards a mature stage of the development, JSBED
  20. McKelvie, A., Chandler, G. N., DeTienne, D. R., & Johansson, A. (2020). The measurement of effectuation: highlighting research tensions and opportunities for the future. Small Business Economics, 54, 689-720.
  21. Perry, J(2012), Entrepreneurial Effectuation: A Review and Suggestions for Future Research
  22. Perry, J., Chandler, G. and Markova, G. (2012), "Entrepreneurial effectuation: a review and suggestions for future research", Entrepreneurship Theory and Practice, Vol. 36 No. 4, pp. 837-861. https://doi.org/10.1111/j.1540-6520.2010.00435.x
  23. Read, S., Dew, N., Sarasvathy, S. D., Song, M., & Wiltbank, R. (2009). Marketing under uncertainty: The logic of an effectual approach. Journal of marketing, 73(3), 1-18.
  24. Read, S., Sarasvathy, SD., Dew, N. and Wiltbank, R. (2016), "Response to Arend, Sarooghi, and Burkemper (2015), cocreating effectual entrepreneurship research", Academy of Management Review, Vol. 41 No. 3, pp. 528-536. https://doi.org/10.5465/amr.2015.0180
  25. Reyman et., al(2015), Understanding Dynamics of Strategic Decision Making in Venture Creation: A Process Study of Effectuation and Causation, Strategic Entrepreneur Journal
  26. Roach, D. C., Ryman, J. A., & Makani, J. (2016). Effectuation, nnovation and performance in SMEs: an empirical study. European journal of Innovation
  27. Sarasvathy & Dew(2011), Without judgment: An empirically-based entrepreneurial theory of the firm, Review of Austrian Economics
  28. Sarasvathy(2001), Causation an Effectuation: Toward a Theoritical Shift from Economic Inevatibility to Entreprenerial Contingency, Academy of Management Review Vol. 26, No. 2
  29. Sarasvathy(2004), Constructing Corridors to Economic Primitives: Entrepreneurial Opportunities as Demand-side Artifacts, Research on Management and Entrepreneurship
  30. Sarasvathy, S. (2008). Effectuation. Elements of Entrepreneurial Expertise.
  31. Smolka, K. M., Verheul, I., Burmeister-Lamp, K., & Heugens, P. P. M. A. R. (2016). Get it together Synergistic effects of causal and effectual decision-making logics on venture performance. Entrepreneurship Theory and Practce
  32. Taghvaee, S., & Talebi, K. (2023). Market orientation in uncertain environments: The enabling role of effectuation orientation in new product development. European Management Journal, 41(2), 323-335.
  33. Werhahn, D., Mauer, R., Flatten, T. C., & Brettel, M. (2015). Validating effectual orientation as strategic direction in the corporate context. European Management Journal
  34. Wiltbank & Sarasbathy(2002), Selection and Return in angel Investment, Babson Conference
  35. Wiltbank, R., Dew, N., Read, S. and Sarasvathy, S. (2006), "What to do next? The case for non-predictive strategy", Strategic Management Journal, Vol. 27 No. 10, pp. 981-998.
  36. Wiltbank, R., Read, S., Dew, N. and Sarasvathy, S. (2009), "Prediction and control under uncertainly: outcomes in angel investing", Journal of Business Venturing, Vol. 24 No. 2, pp. 116-133. https://doi.org/10.1016/j.jbusvent.2007.11.004