Crazy Quilt Principle

The crazy quilt principle of effectual reasoning is the focus on building partnerships rather than beating competitors. Since entrepreneurs tend to start the process without assuming the existence of a predetermined market for their idea, they don’t know who their competitors will be, so detailed competitive analyses have little value. Instead, entrepreneurs generally take the product to the nearest potential customer. Some of the people they interact with make a commitment to the venture, committing time and/or money and/or resources and, thus, self-select into the new-venture creation process. The partnership principle dovetails well with the affordable loss principle to bring the entrepreneur’s idea to market with very little cash expenditure. Obtaining pre-commitments from key stakeholders, suppliers or customers helps reduce uncertainty in the early stages of creating an enterprise. Finally, since the entrepreneur is not wedded to any particular market for his or her idea, the expanding network of strategic partnerships determines, to a great extent, which market or markets the company will eventually end up entering or creating.

Research Papers :

Configurations of effectuation, causation, and bricolage: implications for firm growth paths
Effectual Networks: A Pre-commitment Approach to Bridging the Gap Between Opportunism and Trust
Effectuation in the Management of Knightian Uncertainty: Evidence From the RealNetworks Case
Enhancing the understanding of processes and outcomes of innovation – the contribution of effectuation to S-D logic
HelppoAsu aikoo tehdä Metallicat ja valloittaa maailman effektuaalisesti
Learning from failures in business model innovation: solving decision‐making logic conficts through intrapreneurial efectuation
Metallicalta oppia suomalaiselle elinkeinoelämälle – Kuinka raivataan tie autotallista maailman huipulle ja luodaan uudet markkinat
Offical Response to Arend et al: Co-Creating Effectual Entrepreneurship Research
Unreasonable Assumptions in ASB
What Makes Entrepreneurs Entrepreneurial?
Why Metallica changed music world – Effectuation perspective

Articles :

3M: 7 Pillars of Innovation
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As revenues crash, startups learn to adapt products, services
Barefoot Wine (in Finnish)
Beauty in Business
Bio Generation – The Story of Novozymes
Business Activist
Business Cycle – Terracycle
Creator of Dollars and Change – The Story of Ashoka
Cube Route to Riches: the Story of Rubik Cube
Destination Unknown – The Story of Couchsurfing
Do You Need To Be A Risk Taker To Be An Entrepreneur?
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Entrepreneurship model for biopharma industry
Fair Dinkum
Forgetful Entrepreneur
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Hydration Technology: Unrisky Business
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Like Science, even entrepreneurship should be taught at the school level: Darden Prof Saras D Sarasvathy
Making Waves: the Story of WaveBob
Manifesto for Effectual Action / Manifesto para a Ação Efetual
Money from Nothing – The Redhat Story
Oat Cuisine – the Story of Oatly
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Picture Perfect
Power of Profit – The Story of Husk
Psychological Entrepreneurship
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Recycling $100 Bills
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Swedish Economic Forum Report of Entrepreneurship Education
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The code of how great entrepreneurs think
The Moving Picture Show: One True Media
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USAID Reports on Effectuation in Youth Entrepreneurship Programs
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Winds of Change – the Story of Ecotricity