Immigrant entrepreneur firm start-up behavior and reasoning : a reflective study of causation, effectuation and bricolage

Abstract

Entrepreneurship research studies how and why firms come into being, survive and grow (Davidsson, 2004; Gartner, 1985; Schumpeter, 1934). Early literature has proposed a linear model of entrepreneurship which is intentional (Bird, 1988), opportunity discovery (Kirzner, 1997; Shane and Venkataraman, 2000) and goal & strategy oriented (Wiklund & Shepherd, 2005). Being a mainstream in the earlier research, it is labelled as causation model by Sarasvathy (2001). Several scholars such as Baker & Nelson (2005) and Sarasvathy (2001a, b; 2008) questioned the validity of the model and proposed two additional models to the classic model: Effectuation (Sarasvathy, 1998) and Entrepreneurial Bricolage (Baker & Nelson, 2005). These models claim that entrepreneurs not only start by planning the ends and exploit opportunities, however they start with means at hand which drive them to different ends.

Taking the initiative from immigrant entrepreneurship literature and causation, effectuation and bricolage models, this study critically reviews the theories and proposals as well as the margins between these three entrepreneurship models. In addition, the literature review findings are empirically studied on four Finnish immigrant entrepreneur start-ups by a semi-structured interview. Their start-up behaviours and reasoning is categorized under “initial plan and process factors”, “financial decision-making” and “strategic reasoning” and reflected on the studied theoretical models by the method of qualitative content analysis.

Results clearly prove that causation, effectuation and entrepreneurial bricolage are an integral part of the case immigrant entrepreneurs’ firm creation reasoning and behaviours. Moreover, entrepreneurial bricolage model is studied in the context of affluent resources & environment and the development of the model is suggested under this context in addition to the context of penurious environment and scarce resources as introduced by Le’vyStrauss (1966) and developed by Baker & Nelson (2005) in entrepreneurship literature. Further directions for future research and managerial implications are discussed as concluding remarks of this study.