Critical events and the interplay between serendipity and effectuation in an unforeseen venture creation

Purpose This article examines critical events as components of serendipitous processes and the role of effectuation in shaping these processes and their unanticipated outcomes. Specifically, it introduces a conceptual model of effectuation-enabled serendipity and investigates why and how individuals capitalise on unexpected entrepreneurial opportunities and pursue unforeseen business ventures. Design/methodology/approach The data comprises three narrative accounts by immigrant entrepreneurs in Finland. Narrative research enables exploration of how individuals organise experiences to make sense of past events and their own actions. The study combines critical event analysis with a close examination of serendipitous processes and effectual thinking and action. Findings Critical events constitute a part of broader serendipitous processes, with effectuation providing a framework for decision-making and guiding navigation through each step towards unexpected outcomes. Without the interconnectedness among critical events, serendipity and effectuation, these unforeseen ventures would likely not have been initiated. Originality/value This study offers a pioneering empirical examination of the interplay between serendipity and effectuation in relation to critical events in new venture creation.