The Ramifications of Effectuation on Biases in Entrepreneurship ? Evidence from a Mixed-Method Approach

ZHANG, S.; MAW DER FOO; VASSOLO, ROBERTO

Journal of Business Venturing Insights

Elsevier

Año: 2021

2352-6734

The disconnect between the effectuation literature and the cognitive bias research creates artificial boundaries to inhibit the development of a more integrated understanding of decision-making in entrepreneurship. We analyze the effect of effectuation vis a vis on the biases of overconfidence and illusion of control. We test the effect in both a field survey with entrepreneurs and an experiment. Unraveling the patterns of relationships between effectuation and biases helps to ground the burgeoning effectuation theory to more established cognitive science theories and to advance the scholarly understanding of entrepreneurial decision-making.