Effectuation Publications Library

Access Journal Articles and Chapters Referencing Effectuation 

Welcome to the Publications Library

You can search, filter and access papers and abstracts below.

Have a paper to submit?  Go Here

EFFECTUATION & NEWNESS: AN INTERTWINED RELATIONSHIP? (SUMMARY)

2009

Christophe Garonne Per Davidsson

Effectuation theory suggests that entrepreneurs develop their new ventures in an iterative way by selecting possibilities through flexibility and interactions with the market; a focus on affordability of loss rather than maximal return on the capital invested, and the development of pre-commitments and alliances from stakeholders (Sarasvathy, 2001, 2008; Sarasvathy et al., 2005, 2006). As Sarasvathy resumes, โ€œeffectuation is a straight inversion of rational choice theoryโ€ (Sarasvathy, 2001). However, little is known about the consequences of following either of these two processes. One aspect that remains unclear is the relationship between newness and effectuation. On one hand it can be argued that the combination of a means-centered, interactive and open-minded process should encourage and facilitate the development of innovative solutions. On the other hand, having a close relationship with their โ€œfuture first customersโ€ and focussing too much on the resources and knowledge already within the firm may be a constraint that is not conducive to innovation, or at least not to a radical innovation.

PDF Download

 

 

Submit A Paper to Expand the Dialogue

Close menu