Causation and Effectuation: Toward a Theoretical Shift From Economic Inevitability to Entrepreneurial Contingency
In economics and management theories, scholars have traditionally assumed the existence of artifacts such as firms/organizations and markets. It is argued that an explanation for the creation of such artifacts requires the notion of effectuation. Causation rests on a logic of prediction – effectuation on the logic of control. Effectuation is illustrated through business examples and realistic thought experiments. Effectuation’s connections with existing theories and empirical evidence are examined. A list of testable propositions for future empirical work is provided.
- Journal or Publication:
- Academy of Management Journal
- Authors:
- Saras Sarasvathy
- Tags:
- Status:
- publish
- Year Published
- 2001
- Relevant Principles:
- Lemonade (Leverage Contingencies)
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