This study enriches the theory of effectuation by discussing the four independent
dimensions of effectuation and their relationships with causation.
Additionally, we fill the gap in prior literature by showing how entrepreneurial
experience moderates the relationship between effectuation and innovativeness
of the venture. Our study of 171 practising entrepreneurs regarding
their entrepreneurial decision-making logic yielded multiple findings. The
authors find that entrepreneurs rely on causation as well as effectuation in
their decision-making; the more experienced entrepreneurs are, the more
they actually use causation; and entrepreneurial experience moderates the
relationship between effectuation and innovativeness of the venture firm.