Effectuation Stories

Prof. Saras Sarasvathy Honored with the 2025 Schumpeter School Prize

We are delighted to share that Darden Prof. Saras Sarasvathy, founder of Effectuation theory and the Paul M. Hammaker Chair of Business Administration at the Darden School of Business, University of Virginia, has been awarded the 2025 Schumpeter School Prize by the Schumpeter School of Business and Economics at the University of Wuppertal in Germany. This biennial prize recognizes outstanding theoretical and empirical contributions to innovation and entrepreneurship research—a fitting tribute to Prof. Sarasvathy’s pioneering work in shifting the field from models of economic inevitability to frameworks of entrepreneurial contingency .

Prof. Sarasvathy was honored for her groundbreaking 2001 article “Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency,” one of the most cited works in entrepreneurship literature. Her effectuation framework, which emphasizes leveraging available means, forming partnerships, and embracing flexibility in the face of uncertainty, has reshaped both academic inquiry and practical pedagogy in entrepreneurship.

The festivities on 13 June began with a scholarly workshop, where leading researchers from Germany and abroad presented papers building on Prof. Sarasvathy’s insights. In the afternoon ceremony, remarks were offered by Prof. Dr. Birgitta Wolff (Rector, University of Wuppertal), Prof. Dr. Nils Crasselt (Dean of the Schumpeter School), and Prof. Dr. Peter Witt (Chairman, Schumpeter School Foundation). Prof. Dr. Christine Volkmann delivered the laudatory address before Prof. Sarasvathy herself illustrated her theory’s core principles through real-world examples. Over 90 distinguished guests—including Axel Jütz, Chairman of Stadtsparkasse Wuppertal and prize benefactor—celebrated this momentous occasion.

Prof. Sarasvathy’s academic achievements span more than 60 peer-reviewed articles and eight books. Her earlier