Causation and Effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency.
In economics and management theories, scholars have traditionally assumed the existance of artifacts such as firms/organizations and markets.I argue 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. I illustrate effectuation through business examples and realistic thought experiments, examine its connections with existing theories and emperical evidence and offer a list of testable propositions for future empirical work.
- Journal or Publication:
- Authors:
- Saras Sarasvathy
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- Status:
- publish
- Year Published
- 2002
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