How Does the Combination of Factors Influence Entrepreneurs’ Decision-Making Logic? A Qualitative Comparative analysis

Abstract

This study explores the different paths that lead to the effectuation and causation of entrepreneurial decision-making logic. Data were collected from a sample of 300 entrepreneurs in China in January and March 2018 and analyzed using crisp-set qualitative comparative analysis (csQCA). The results reveal various combinations of four key factors, i.e., environmental uncertainty, entrepreneurial experience, organizational slack, and centralization of decision-making factors, determine the effectuation or causation logics. No antecedent condition alone is necessary to produce the outcome, although several factors are identified as sufficient for the presence of effectual or causal decision-making logics. This study advances the entrepreneurship literature by revealing the combinations of factors that Knowledge of how the factors interact in the decision-making process determine entrepreneurial decision-making logic. The study findings can help entrepreneurs to better communicate, discuss and justify their decisions.