Abstract

The popular theory of effectuation (Sarasvathy, 2001) is a prototypical example of deriving novel insights from practical observations. It’s logic emerged from interpreting and extrapolating interview data collected using a think-aloud protocol from twenty-seven “expert” entrepreneurs based. Effectuation has five core principles, which Sarasvathy (2009) relate to means-driven action, consideration of what one is willing to lose, negotiating with stakeholders willing to make commitments towards a project, recognizing and leveraging contingencies, and acknowledging agency as the driver of new opportunities, respectively. The common thread across these tenets is non-predictive control to substantially reduce, if not eliminate, the use of predictive strategies in dealing with uncertainties.

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