Effectuation and home based online business entrepreneurs
This article explores effectual processes within home based, online businesses. Our empirical evidence provides a number of refinements to the concept of effectuation in this specific domain. First, the ubiquity of non proprietary online trading platforms encourages the adoption of effectual approaches and removes the importance of forming proprietary strategic alliances and pre commitments. Second, the notion of affordable loss a central tenet of effectuation should be extended beyond the notion of economic to social affordable loss, including loss of status and reputation, and finally, home based online businesses allow effectuation to be associated with low levels of entrepreneurial self efficacy and experience.