Innovativeness In New Ventures: Influences Of Social Capital And Entrepreneurial Processes

This study investigates the effect of contingencies related to the choice of entrepreneurial processes, meaning causation as opposed to effectuation, on the relationship between innovativeness and three dimensions of social capital, namely relational, structural, and cognitive. First, we draw on theories of causation and effectuation, in addition to the social networks and social capital literature, to conceptualize the adverse effect of the causal approach on innovativeness in new ventures. Second, we examine the moderation effect of the causal approach on the link between dimensions of social capital and new venture innovativeness. This effect is explained based on the logic that causal approaches can diminish the conducive effect of social capital on innovativeness. To empirically investigate the proposed theoretical arguments, this study utilizes a dataset of responses from 1,214 entrepreneurs involved in new ventures in the U.S.. The findings in this study offer insights on the possible adverse effect of the causal approach on innovativeness in new ventures. Further, we contribute to the ongoing scholarly, theoretical, and methodological, debate on entrepreneurial processes, and the causal-effectual distinction.