Effectuation Orchestration the Process for Innovation

Abstract

This study underpins the role of effectuation that connects the entrepreneurial prior
experience to product and service innovation, and how the entrepreneurs‘ prior experience
uses the effectuation process for product and service innovation. Samples of 348 respondents
were collected to measure these variables and their connection. The study uses self-reported
instruments and purposive convenience sampling techniques to measure the entrepreneurs‘
prior experience and impact on the product and service innovation. SPSS version 25 is used
for statistical analysis and the Hayes process is employed for obtaining mediation results. The
study finds a strong link between effectuation as a mediator to product and service innovation
and recommends using the model of effectuation proposed by Sarasvathy (2009) as a process
to innovate in organizations. The model of effectuation needs to be understood to be applied
by new entrepreneurs of MSME's. The study suggests that academia to understand this
concept and make it a part of the curriculum of entrepreneurship study for startups and
innovations by new entrepreneurs. This research adds to the current literature on how
effectuation can become a process of innovation. This research recommended the suggestion
of the effectuation model which proposes that an entrepreneur needs to develop a network for
innovation instead of trying to do everything on their own