Perceived uncertainty and behavioral logic: Temporality and unanticipated consequences in the new venture creation process.

2019

Jiang, Yi; Tornikoski, Erno T.

Abstract In this study, drawing on effectuation theory, we combine analytical strategies for process data to examine inductively and theorize how founder teams' perceptions of uncertainty and behavioral logics develop during new venture creation processes. The results reveal four phases and suggest a possible evolution from a causal conditional relationship between perceived uncertainty and behavioral logics to an integrative relationship. We bring to light the notion of temporality and unanticipated consequences, discuss their central roles in perceived uncertainty, effectuation, and causation, and offer revelatory insights into why and when effectuation is used in relation to uncertainty and entrepreneurial action. Highlights • We use process method design to examine how the relationship between perceived uncertainty and behavioral logics (effectuation vs. causation) evolves in new venture creation processes. • The nature of the relationship between perceived uncertainty and behavioral logics evolves from causal conditional to integrative. • The boundary condition for effectuation theory extends from the perception of uncertainty through to situations in which unanticipated consequences occur. • We provide a more nuanced picture of when and why effectuation is applied. [ABSTRACT FROM AUTHOR]

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