Abstract
Previous research has discussed managers' motivation in fostering innovation in large firms, but the motivational triggers and mechanisms to develop radical innovation in small firms have received less attention. To fill the gap, this study investigates the effects of autonomous motivations of focal entrepreneurs on radical innovations in small firms and examines the role of effectuation as a mediating mechanism in this relationship. By sampling 275 Canadian small firms and using a quantitative method, we found that autonomous motivation leads to radical innovation. Effectuation positively mediates the relationship, and the impact of effectuation on radical innovation is stronger for optimist entrepreneurs. Our post hoc analysis offers a more precise understanding of the process entrepreneurs in high-tech, versus low-tech, small firms undertake to develop radically innovative products.