The Effect of Entrepreneurial Orientation on Strategic Learning: Defining the Role of Effectuation Strategy

This research studies the role of effectuation strategy on strategic learning by focusing on the role of effectuation strategy. Strategic learning involves the firm's ability to create, collect, and interpret strategic knowledge and act on that knowledge in order to make strategic change. While existing literature introduces strategic learning as the inevitable consequences of an entrepreneurial orientation, there are conflicting results in literature if formal approach or flexible approach of strategy formation has a positive impact on this relationship. The present study focuses on effectuation strategy as a flexible and control-based orientation in developing a strategy and studies the mediating role of effectuation strategy in the relationship between entrepreneurial orientation and strategic learning. This study is a applicable research and descriptive/correlation research. The data of this study were collected through distribution of standard questionnaires among the owners and senior managers of 210 knowledge-based firms in the field of information technology that were selected randomly from 444 cases. In order to test the research hypotheses, we use structural equation modeling for quantitative data analysis using Smat PLS 03 software. The results of the data analysis show that in a firm with an entrepreneurial orientation, the adoption of effectual strategies of experimentation and flexibility positively affects strategic learning whereas effectual strategy of pre-commitment negatively affects strategic learning.