Graduate School of Business Administration, University of the Witwatersrand, Johannesburg, South Africa
Urban, B., Graduate School of Business Administration, University of the Witwatersrand, Johannesburg, South Africa; Heydenrych, J., Graduate School of Business Administration, University of the Witwatersrand, Johannesburg, South Africa
Effectuation processes are consistent with emergent or non-predictive strategies, and speak to the essence of Schumpeter’s theory of creative destruction. In this study, hypotheses are formulated to understand the relationship between effectuation, technology orientation, and firm performance. The study takes place in South Africa, which remains a highly significant economic player in sub-Saharan Africa, and is focused on the renewable energy sector. Survey results provide evidence that different dimensions of effectuation are positively associated with technology orientation, and influence firm performance. Policy makers should be encouraging firms to use effectual principles of experimentation, flexibility, establishing pre-commitments, and forming alliances, so as to maximise their returns on technology and constrain their potential losses. © 2015, South African Institute of Industrial Engineering, All rights reserved.