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Effectuation Publications Library
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What Effectuation is Not: Further Development of an Alternative to Rational Choice
2010
Saras Sarasvathy Rob Wiltbank
The theory of effectual reasoning advanced by Sarasvathy (2001a) proposes a decision process employed by entrepreneurs that differs substantially from the rational choice paradigm. This paper seeks to clarify this distinctive point of view on entrepreneurial decision-making by pointing to nine things that effectuation is not. The paper further explains the effectual paradigm and illustrates how effectuation integrates with other theories used in management science.