Have you heard of a concept called effectuation, the theory of entrepreneurship pioneered by University of Virginia Darden School of Business Professor Saras Sarasvathy?
Well, it is pretty important, at least to the editors of Small Business Economics: An Entrepreneurship Journal. They devoted a special issue that includes 13 articles related to effectuation.
The nearly 20-year old theory describes an approach to making decisions and performing actions in entrepreneurship processes where an entrepreneur identifies the next, best step by assessing the resources available in order to achieve her/hisgoals, while continuously balancing these goals with resources and actions.
Effectuation differs from causal logic where there is a predetermined goal and the process to achieve it is carefully planned in accordance to a set of given resources.
Click here to learn more and also access a link to the journal.