Effectuation,Exploratory Learning and New Venture Performance: Evidence from China |
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| Authors: | Li Cai Runping Guo Yupeng Fei Zhao Liu |
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| Affiliation: | 1. Li Cai is a professor at Jilin University, School of Management, Changchun, Jilin, China. She is also the director of Entrepreneurial Research Center at Jilin University;2. Runping Guo is a lecturer at Jilin University, School of Management, Changchun, Jilin, China;3. Yupeng Fei is an associate professor at Jilin University, School of Management, Changchun, Jilin, China;4. Zhao Liu is a lecturer at Jilin University, School of Philosophy and Society, Changchun, Jilin, China. |
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| Abstract: | This paper examines the effect of effectuation on new venture performance in the context of Chinese transitional economy. To determine how new ventures benefit from effectuation, we examine the role of exploratory learning as a key mediator. Using data from 266 Chinese new ventures, our results show that effectuation has a positive effect on new venture performance. Exploratory learning plays a fully mediating role in the relationship between effectuation and new venture performance. This empirical evidence contributes to the development of the theory of effectuation and also provides managerial guidelines for new ventures facing uncertain business environments like transitional economies. |
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