Applying the principles of causation and effectuation to the performance of accounting franchises and private labels

This study investigates the applicability of the principles of Causation and Effectuation in the management strategies and performance of accounting franchises and private labels. Using a quantitative approach, the study analyzes how these principles influence business performance in two distinct contexts: accounting franchises and private label companies. Based on a sample of 718 accounting firms registered with the Federal Accounting Council (CFC) and collected between April and July 2023, the study uses statistical analysis to test hypotheses related to the frequency and efficiency of application of the principles mentioned. The theoretical model, structured around specific hypotheses, suggests significant differences in the application of Causation and Effectuation, with Causation being more prevalent and effective in accounting franchises and Effectuation showing greater efficiency in private labels. The results indicate that goal orientation, competitive analysis and surprise management are significantly linked to the success of accounting franchises from a Causation perspective, while risk management, strategic partnerships and taking advantage of unexpected opportunities are more effective for private labels from an Effectuation perspective. This study contributes to the strategic management literature by clarifying how different strategic principles can be adapted to maximize performance in different business models. Furthermore, this study adds to the strategic management literature by highlighting the importance of choosing appropriate decision theories based on the type of business and the operating context. Additionally, it offers guidance to managers of accounting franchises and private labels on how to align their decision-making strategies to improve organizational performance. The research highlights the need for a flexible and adaptive approach to management strategies, taking into account the specific characteristics of the business model.