Effectuation, causation and CEO tenure: navigating SME performance in dynamic environments
Journal of Entrepreneurship in Emerging Economies
ISSN: 2053-4604
Article publication date: 29 January 2025
Abstract
Purpose
Amidst global economic uncertainties, small and medium-sized enterprises (SMEs) are confronted with the pressing need to adapt to complex and ambiguous external landscapes. This study aims to investigate how the decision-making strategies of causation and effectuation are related to the performance of Russian SMEs and whether and how this relationship is moderated by CEO tenure.
Design/methodology/approach
Using a sample of 602 Russian SMEs, hierarchical linear modeling and its estimation using ordinary least squares is conducted. Robustness checks and post hoc analysis are performed.
Findings
The findings provide insights into effectuation theory by looking at and testing its basic tenets in an underexplored context and investigating the direct and moderated effects of causation and effectuation on SME performance. Moreover, the study builds upon upper-echelons theory (UET) by considering CEO tenure – an individual-level characteristic – as a moderator in the effectuation/causation and SME performance relationship. A framework for understanding how executives’ attributes shape organizational strategies and outcomes is provided.
Originality/value
The findings contribute to effectuation theory by testing its core principles in emerging market context, examining both direct and moderated effects of causation and effectuation on SME performance. Moreover, the study builds upon upper-echelons theory (UET) by considering CEO tenure – an individual-level characteristic – as a moderator in the effectuation/causation and SME performance relationship. This study offers a framework for understanding how executive characteristics shape organizational strategies and outcomes in emerging markets.
Keywords
Acknowledgements
This research has been conducted with financial support from the Russian Science Foundation [project No. 23–18-00830].
Declaration of conflicting interests: The author declare no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.
Citation
Kozachenko, E. (2025), "Effectuation, causation and CEO tenure: navigating SME performance in dynamic environments", Journal of Entrepreneurship in Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEEE-06-2024-0224
Publisher
:Emerald Publishing Limited
Copyright © 2025, Emerald Publishing Limited