Title: Experts of thoroughness and fanatics of planning? Daring insights into the decision-making of German entrepreneurs

Authors: Silke Tegtmeier; Verena Meyer

Addresses: Mads Clausen Institute, University of Southern Denmark, Alsion 2, DK-6400 Sønderborg, Denmark ' Leuphana University of Lüneburg, Scharnhorststraße 1, 21335 Lüneburg, Germany

Abstract: This paper provides two daring insights into entrepreneurial decision-making: First, we show that the cliché of German entrepreneurs as experts of thoroughness and fanatics of planning is not compatible with effectual decision-making (Sarasvathy, 2001). Stereotypically, German entrepreneurs are supposed to use causal decision-making. This challenges the basic assumption of effectuation as a cross-cultural concept. Second, we shed light on the fuzzy role of entrepreneurial expertise for effectuation. Our study is based on a sample of entrepreneurs (N = 560) and a comparison group of non-entrepreneurs (N = 351). We employed a scenario-based questionnaire to examine participants' causal and effectual decision-making. Our ordered logit models reveal that German entrepreneurs use effectual decision-making more often - despite their image of causal and predictive business planning. Surprisingly, the level of entrepreneurial expertise did not influence this tendency. Hence, the role of entrepreneurial expertise and deliberate practice in effectuation theory has to be rethought.

Keywords: German entrepreneurship; effectuation; causation; business planning; thoroughness; scenario-based; entrepreneurial decision-making; entrepreneurial expertise; deliberate practice; prediction; ordered logit regression; Germany.

DOI: 10.1504/IJESB.2018.088685

International Journal of Entrepreneurship and Small Business, 2018 Vol.33 No.1, pp.132 - 157

Received: 16 Jul 2016
Accepted: 07 Mar 2017
Published online: 14 Dec 2017 *

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