An investigation of the implications for effectuation of social interaction enabled by the use of microblogging

Social interaction plays a central role in effectuation processes, yet we know little about the implications for effectuation when an entrepreneur interacts via particular channels such as social media. To address this gap, our paper uses an inductive, theory-building methodology to develop propositions regarding how effectuation processes are impacted when entrepreneurs adopt Twitter. We posit that Twitter based interaction can trigger effectual cognitions, but that high levels of interaction via this medium can lead to effectual churn. Implications for our understanding of effectuation, of social interaction, and of the impact of social media on entrepreneurial firms are discussed.