The nexus between effectual actions and small business performance
Purpose: This study interrogates the interrelatedness of effectual actions and small business performance. It provides fresh insights about effectual heuristics and small business performance, as evinced in a study with data drawn from a variety of sectors. Design/methodology/approach: Based on pri...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
2022-07-01
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| Series: | South African Journal of Business Management |
| Subjects: | |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/3188 |
| _version_ | 1818490027689115648 |
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| author | Ubochioma U.S. Osuigwe Chukuakadibia Eresia-Eke |
| author_facet | Ubochioma U.S. Osuigwe Chukuakadibia Eresia-Eke |
| author_sort | Ubochioma U.S. Osuigwe |
| collection | DOAJ |
| description | Purpose: This study interrogates the interrelatedness of effectual actions and small business performance. It provides fresh insights about effectual heuristics and small business performance, as evinced in a study with data drawn from a variety of sectors.
Design/methodology/approach: Based on primary data from 685 small businesses, the study examines hypothesised relationships using the partial least squares structural equation modelling technique.
Findings/results: The findings reveal the varied effects of composite effectuation and its dimensions on small business performance. Composite effectuation, affordable loss and flexibility are positively related to small business performance, whilst experimentation and precommitment have negative relationships with small business performance. The study concludes that the application of effectual actions has diverse implications for small business performance.
Research implications: The generalisation of findings can be limited, given that this is a single country study. Limitations notwithstanding, this article provides new empirical data, knowledge and insight about the relationship between effectual actions and small business performance. This provides a strong base for future multicountry research into effectual actions and small business performance.
Practical implications: The findings of this article have implications for small businesses navigating uncertainties occasioned by resource constraints. Essentially, the findings of this study can enhance the development of a learning curriculum to improve the ability of small businesses to apply effectual heuristics in managing resource challenges.
Originality/value: This article addresses the research gap in the field of entrepreneurship arising from the limited empirical studies on the relationships between effectual actions and small business performance. |
| first_indexed | 2024-12-10T17:11:40Z |
| format | Article |
| id | doaj.art-b5c0b9a6c261424ab753c0970db936d2 |
| institution | Directory Open Access Journal |
| issn | 2078-5585 2078-5976 |
| language | English |
| last_indexed | 2024-12-10T17:11:40Z |
| publishDate | 2022-07-01 |
| publisher | AOSIS |
| record_format | Article |
| series | South African Journal of Business Management |
| spelling | doaj.art-b5c0b9a6c261424ab753c0970db936d22022-12-22T01:40:17ZengAOSISSouth African Journal of Business Management2078-55852078-59762022-07-01531e1e1010.4102/sajbm.v53i1.31881247The nexus between effectual actions and small business performanceUbochioma U.S. Osuigwe0Chukuakadibia Eresia-Eke1Department of Business Management, Faculty of Economic and Management Sciences, University of Pretoria, PretoriaDepartment of Business Management, Faculty of Economic and Management Sciences, University of Pretoria, PretoriaPurpose: This study interrogates the interrelatedness of effectual actions and small business performance. It provides fresh insights about effectual heuristics and small business performance, as evinced in a study with data drawn from a variety of sectors. Design/methodology/approach: Based on primary data from 685 small businesses, the study examines hypothesised relationships using the partial least squares structural equation modelling technique. Findings/results: The findings reveal the varied effects of composite effectuation and its dimensions on small business performance. Composite effectuation, affordable loss and flexibility are positively related to small business performance, whilst experimentation and precommitment have negative relationships with small business performance. The study concludes that the application of effectual actions has diverse implications for small business performance. Research implications: The generalisation of findings can be limited, given that this is a single country study. Limitations notwithstanding, this article provides new empirical data, knowledge and insight about the relationship between effectual actions and small business performance. This provides a strong base for future multicountry research into effectual actions and small business performance. Practical implications: The findings of this article have implications for small businesses navigating uncertainties occasioned by resource constraints. Essentially, the findings of this study can enhance the development of a learning curriculum to improve the ability of small businesses to apply effectual heuristics in managing resource challenges. Originality/value: This article addresses the research gap in the field of entrepreneurship arising from the limited empirical studies on the relationships between effectual actions and small business performance.https://sajbm.org/index.php/sajbm/article/view/3188effectuationsmall business performanceexperimentationaffordable lossflexibilityprecommitmentheuristicseffectual actions |
| spellingShingle | Ubochioma U.S. Osuigwe Chukuakadibia Eresia-Eke The nexus between effectual actions and small business performance South African Journal of Business Management effectuation small business performance experimentation affordable loss flexibility precommitment heuristics effectual actions |
| title | The nexus between effectual actions and small business performance |
| title_full | The nexus between effectual actions and small business performance |
| title_fullStr | The nexus between effectual actions and small business performance |
| title_full_unstemmed | The nexus between effectual actions and small business performance |
| title_short | The nexus between effectual actions and small business performance |
| title_sort | nexus between effectual actions and small business performance |
| topic | effectuation small business performance experimentation affordable loss flexibility precommitment heuristics effectual actions |
| url | https://sajbm.org/index.php/sajbm/article/view/3188 |
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