Effectuating New Business Development in Large Firms:

Abstract

This study is grounded in an examination of a prominent electrical appliance corporation, with the aim of proposing an innovative framework in which to evaluate integration of distinct decision-making logics, namely Causation and Effectuation, within Business Model Innovation (BMI) in large-scale enterprises. Specifically, our research reveals the enduring positive effects resulting from combination of these two logics, underscoring the critical importance of dissociating effectuation practices from short-term causation evaluation criteria. Following a sequence of business development procedures, the intrapreneur disengages from the organization, which has relatively de-emphasized effectuating processes, and transitions to a novel intra-organization characterized by a BMI orientation. Consequently, the holistic system operates seamlessly. We posit that these findings contribute a novel perspective to scholarly investigations of the innovation processes in enterprises that exhibit a substantial departure from established business paradigms. Furthermore, our insights extend into the domain of effectuation research, enriching the existing academic discourse.

Keywords

• corporate venturing
• causation
• entrepreneurship
• near-decomposability
• case study