Berends et al. (2014): Product innovation processes in small firms: combining entrepreneurial effectuation and managerial causation
16 important questions on Berends et al. (2014): Product innovation processes in small firms: combining entrepreneurial effectuation and managerial causation
What is the main difference regarding innovation processes between small firms and large enterprises?
Effectuation theory discerns two logics of decision-making. Which two are those?
- Causation
- Assuming that means are selected to attain goals.
- Effectuation
- Assuming that goals are created based upon available means.
Which theory is deployed by this article and for what reason?
unfolds in small firms, this study deploys effectuation theory, which emerged in entrepreneurship studies.
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
Which method is used in the paper by Berends et al. (2014)?
- Process research approach: investigating small firm product innovation as a sequence of events or activities that describe how things change over time
- Longitudinal study 2005 - 2008 in 5 small firms
Which four principles are associated with this effectuation theory (differences between effectuation and causation)?
- Effectuation seeks to control an unpredictable future by avoiding uncertainties and focusing on what is under short-term control, where causation focuses on predicting an uncertain future.
- Effectuation chooses actions based upon an affordable loss criterion, whereas causation seeks to maximise expected returns.
- Effectuation seeks to build strategic alliances to expand the firm’s accessible resource base, whereas causation starts from competitive analysis.
- Effectuation learns as it goes, exploiting emergent contingencies whereas causation exploits prior predictions or pre-existing knowledge.
The effectual approach to firms’ product innovation efforts is conceptualised as ...?
- Resource-driven
- Stepwise
- Open-ended
What are the findings with regards of the goals, resources and ideas in the causal logic?
- Goals: Setting product innovation objectives and product definitions early in the process
- Resources: Committed aimed at the goal or goals crystallised over time
- Ideas: Primarily linked to goals, as they serve to formulate goals or concern potential ways to realise the objectives to which resources can be committed later.
- Ideas may form a bridge from goals to resources.
Which 8 tactics are used by small firms in their product innovation?
- Made creative use of existing resources
- Scoped innovations to be realizable with available resources
- Used external resources whenever and wherever these became available
- Prioritised existing business over product innovation projects
- Used loose project planning
- Worked in steps toward tangible outcomes
- Iterated the generation, selection, and modification of goals and ideas
- Relied on their own customer knowledge and market probing, rather than early market research.
Result: In managing the process of product innovation, causal logic can also be recognised. In what way?
Result: Effectuation logic was visible at several moments in the innovation trajectories, but especially visible in which stages?
Results: How can the process within the effectuation logic be described?
What are the findings with regards to the goals and ideas in the effectuation logic?
- Ideas: Often concern how to use resources creatively for new products, thus forming a bridge form resources to goals.
- Goals and ideas are crystalling over time.
What is the main finding of the article with regards to the effectuation and causal logic?
- Quantitative analyses revealed early effectuation logic, which increasingly turned toward causation logic over time.
- Both logics were used, with effectual logic rendering product innovation resource-driven, stepwise, and open-ended, and with causal logic used especially in later stages to set objectives and to plan activities and invest resources to attain objectives.
What is the conclusion of the article with regards to NPD in small firms?
- Product innovation in small firms cannot be dismissed (worden afgedaan) as merely unplanned, chaotic, improvisational, or ad hoc.
- Instead, where product innovation does not conform to goal directed approach to NPD management, there may still be an underlying logic: effectuation.
Result: Needs the canon of best practices in product innovation to be the same or be differentiated between large firms and small firms?
Effectuation theory discerns two logics of decision-making. Which two are those?
- Causation
- Assuming that means are selected to attain goals.
- Effectuation
- Assuming that goals are created based upon available means.
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
![Trustpilot Logo](/images/design_2020/lp/clp-trustpilot-en.png)