The Role of Entrepreneurial Self-Efficacy in Resources Acquisition in a New Venture: The Mediating Role of Effectuation

Abstract

The present study aims to explore the role of entrepreneurial self-efficacy (ESE) concept with a combination of an effectuation concept. First, it examined the effect of ESE on resources acquisition in a new venture in an emerging country’s context. Second, it attempted to use effectuation principles, namely, affordable loss, set of means, and precommitment as mediators in a relationship between ESE and resource acquisition in a new venture. A sample of 462 agro-processing entrepreneurs is explicitly surveyed and interviewed. The hierarchical regression and structural equation model were employed to analyze the data. Results showed that an ESE has a significant positive effect on the venture’s resources acquisition ability. Moreover, results showed that the effect of ESE in resource acquisition is manifested through affordable loss, precommitment, and set of means principles. Theoretically, this study extends the knowledge on the mediating role of effectuation principles using ESE in pursuing essential venture functions such as resources acquisition.