In this essay we examine the assumptions called into question by one such dilemma in business, namely the Innovator’s Dilemma (Christensen, 1997). The two assumptions challenged by the Innovator’s Dilemma are: (1) Predictive rationality in decision making within the firm; and, (2) Pre-existent markets in the firm’s environment. We will replace these two assumptions with (1) effectuation (i.e. a plural notion of rationality) in the firm’s internal decision making, and (2) an environment consisting of mortal markets (existing markets competing with markets yet-to-be), respectively. The new conceptual reality thus ushered in will define a new theoretical role for firms in our economic models. Inside such a re-conceptualization, the creation of new technologies and new markets is a matter of course in the lives of firms, rather than being possible disruptions in their daily existence.