What Effectuation is Not: Further Development of an Alternative to Rational Choice


The theory of effectual reasoning advanced by Sarasvathy (2001a) proposes a decision process employed by entrepreneurs that differs substantially from the rational choice paradigm. This paper seeks to clarify this distinctive point of view on entrepreneurial decision-making by pointing to nine things that effectuation is not. The paper further explains the effectual paradigm and illustrates how effectuation integrates with other theories used in management science.

Journal or Publication:
Academy of Management Conference
Authors:
Saras Sarasvathy
Rob Wiltbank
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Status:
publish
Year Published
2010
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