Effectuation, market ambidexterity and entrepreneurial performance: Evidence from China

Venue: Room 1102, Library & Information Building C, Zijingang Campus

Speaker: Qing Wang, Professor of Marketing and Innovation, Warwick Business School

Abstract:

Effectuation plays an important role in decision-making and actions of new ventures, but there are still many inconsistencies in the theoretical understanding of its relationship between entrepreneurial performance. Applying the ambidexterity theory, market ambidexterity in new ventures is used as a mediator variable to explore the logical relationship between effectuation and entrepreneurial performance in the market level. Using data from 186 new enterprises, the empirical analysis shows that effectuation has a significant impact on the balance and interplay between market exploration and market exploitation, and its impact mechanism is different; effectuation also has positive effects on operating performance and growth performance; the balance of market ambidexterity has positive influence on operating performance, while the interplay of market ambidexterity has a significant effect on growth performance. The research conclusions provide several management implications for new ventures to apply effectuation to achieve market ambidexterity and improve entrepreneurial performance.