The entrepreneurial exit process: Exploring the interplay between causation and effectuation in designing stewardship exit strategies


Article de revue

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État de publication: publié

Nom de la revue: Journal of Business Research

Volume: 186

URL: https://www.sciencedirect.com/science/article/pii/S0148296324004466?via%3Dihub

Résumé: This paper explores the decision-making process of entrepreneurs aiming to exit their business using stewardship exit strategies. We explore this process through the causation and effectuation mode of action. To do so, we developed causal and effectual exit behavior indicators and analyzed 15 Canadian SME cases based on interviews. Our results show that entrepreneurs used both modes of action in their exit process, but effectual behaviors prevailed. Our study first contributes to the entrepreneurial exit literature by employing a process-based approach. In doing so, we propose an iterative model that considers the interplay between causation and effectuation in the stewardship-exit decision process. Thus, we also add to the limited discussion about exit in the effectuation literature. Second, we developed behavior indicators to observe and analyze during the exit process and to explore other entrepreneurial exit strategies. Third, we show entrepreneurs different pathways to achieve their exit.