Effectuation or causation to promote innovation in technology-based SMEs? The effects of strategic decision-making logics

Abstract

For technology-based SMEs, with severe resource restrictions, tackling the innovative dynamics successfully is a major challenge. Given the uncertainty of the process and the environment these firms face greater difficulties in their decision-making process. Effectuation and causation are two decision-making logics for situations of uncertainty that have recently been employed in the scope of innovation in SMEs. Although some studies have made important contributions, they have also revealed several gaps in the research. Our study seeks to address these gaps by analysing empirically the value of effectual and causal decision-making logic for innovation in technology-sector SMEs through these logics’ dimensions. Our results reveal that both effectuation and causation influence innovation through some of their dimensions. © 2020 Informa UK Limited, trading as Taylor & Francis Group.