SME innovativeness in a dynamic environment: is there any value in combining causation and effectuation?

It has been suggested that, in dynamic environments, the combination of causation and effectuation will boost an SME’s innovative performance, compared to a sole focus on planning. To statistically test this claim, we develop a contingency model for business planning, which considers effectuation as an internal and environmental dynamism as an external boundary condition. As expected, we find that causation positively relates to an SME’s...