Table A1.

Behavioural comparison of effectuation and causation in farm business

DimensionEffectual behavioural characteristicsCausal behavioural characteristics
a. Means vs goalsThe farm business is driven by available means and resourcesThe farm business is driven by strict targets (e.g. volume of sales, output and capacity utilization)
b. Affordable loss vs maximizing returnsThe farm business is guided by advanced commitments to what one is prepared to loseThe farm business approach is oriented towards maximization of returns
c. Alliances vs competitive market analysisUncertainty is reduced by building partnership and pre-commitments of self-selected stakeholdersUncertainty is identified and avoided through market and competition analysis and other means, e.g. higher inventories
d. Leverage on contingencies vs avoid the unexpectedContingencies/surprises are seen as a source of opportunitiesContingences/surprises are avoided or quickly overcome to reach given farm targets
Source: Adapted from Chandler et al. (2011) 

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