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Effectuation Publications Library
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A CONTINGENCY MODEL OF ENTREPRENEURIAL ENTRY STRATEGIES: THE ROLE OF MOTIVATION AND RESOURCES AVAILABILITY (INTERACTIVE PAPER)
2011
Nadav Rotemberg-Shir Karl Wennberg
While current theory has tended to focus on either motivational factors or creative strategies of resource utilization, these two streams of research have developed separately. As a result, the literature has little to say under what conditions differences in motivation and resources will lead to divergent types of entry strategies. In this project we outline and test a contingency model suggesting that the interaction of motivation and resource availability is intimately tied to entrepreneurs’ type of entry strategies. When motivation is relatively low but resource availability is high, our model predicts that entrepreneurs will use a real-option entry strategy. When motivation is high but resource availability is low the entrepreneurs will compensate by employing creative solutions, suggesting that entrepreneurs will utilize more of bricolage resource utilization. When both motivation and resource availability is high, our model suggests that the resulted higher self-confidence, allow for a more flexible and experimental strategy coherent with effectuation (Sarasvathy, 2001).