Antecedents of venture cognitive logic during new product development: Evidence from Russian market

This master thesis is about the phenomenon of venture cognitive logic applied to new product development (NPD). The aim of the study is to explore which factors influence the choice of venture cognitive logic applied by entrepreneur to new product development process. The paper focuses on two types of venture cognitive logic: effectuation and causation. As a research strategy multiple case study was chosen. The empirical research is based on the case study of four entrepreneurs. Entrepreneurs chosen for the research have founded companies either operating in innovative industry or frequently launch new products. The study identified three groups of factors that significantly influence the choice of venture cognitive logic during NPD: personal characteristics, industry trends and situational context. Factors increasing uncertainty of the business environment lead to the application of effectuation. Application of causal logic is provoked by factors representative of mature organizations. Effectuation is mostly applied at the start-up phase of the company and can be changed to causation over time. This master thesis contributes to the development of effectuation theory, relates it to the domain of NPD, explores antecedents of venture cognitive logic. Practical implications of the results will allow managers to distinguish factors influencing the venture cognitive logic during NPD process and overcome obstacles by leveraging on combination of factors typical for either causation or effectuation