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Causation and effectuation vs. analysis and intuition: conceptual parallels in the context of entrepreneurial decision-making


Andre Hermes

In the past years there has always been the reoccurring phenomenon of reinventing something that had already been successfully researched. Open innovation, for example, is a term created by Henry Chesbrough referring to the use of both internal and external knowledge to improve internal innovation. Nothing new, yet a term that is used in business books until now. It is the phenomenon that organizations are constantly seeking for new answers to old problems. This study aims at analyzing this concerning Sarasvathy’s work of causation and effectuation comparing it with Allinson and Hayes’ earlier work of analysis and intuition in order to determine whether their terms have been replaced by allegedly “new” innovative terms of Sarasvathy having the same meaning after all. Results indeed show parallels in their terms and definitions. However, the terms diverge in terms of their application and use. Furthermore, the phenomenon in general seems to be underlaying a deep cognitive and behavioral approach that lacks in evidence but in return opens doors for further research.

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