Validating effectual orientation as strategic direction in the corporate context

This paper takes the concept of effectuation – a collection of entrepreneurial heuristics – from the individual level to the firm level. On this level, effectuation can be understood as strategic direction reflecting a mindset that emphasizes the entrepreneurial behavior of employees. Based on an extensive literature review, a series of pre-tests, and two large survey-based studies of German companies, we describe, develop, and validate a multidimensional measure of effectual orientation.