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.

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Saras Sarasvathy
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