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South African Journal of Industrial Engineering

On-line version ISSN 2224-7890
Print version ISSN 1012-277X


URBAN, B.  and  HEYDENRYCH, J.. Technology orientation and effectuation - Links to firm performance in the renewable energy sector of South Africa. S. Afr. J. Ind. Eng. [online]. 2015, vol.26, n.3, pp.125-136. ISSN 2224-7890.

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.

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