Causation and Effectuation in Contemporary Entrepreneurship

This report analyzes the relevance of theoretical models of entrepreneurship in the contemporary business context characterized by uncertainty and major global dislocations such as climate change. It discusses the use of causation and effectuation in establishing new business ideas and strategies to achieve better results for the organization in the market.

Causation and
effectuation

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Critically assessing the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
such as climate change................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Contemporary management is the approach which helps the individual to analyse
multiple business activities which been establishing in the workplace. There are multiple
activities which includes planning the operations, using new strategies and methods etc. There
are various investors which have direct influence on the company (Bloemen-Bekx, Lambrechts,
and Van Gils, 2021). They monitor the overall performance of the organisation and help the
management to utilise the resources in an effective manner. This report aims to analyse about
understanding the various models of entrepreneurship in regards to the business operations.
There is a uncertainty with the new economic trends which is been establishing in the market.
MAIN BODY
Critically assessing the theoretical model of entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
such as climate change
Entrepreneurship can be descried as a process of establishing new business from the
scratch. There is a process which needs to be kept in mind when the entrepreneur develop new
ideas and strategies to achieve better results for the organisation in the market. They need to
utilise the resources in an effective manner to generate more revenues in the desired industry.
There are basically four main theories which is as follows. It includes the cultural theory,
economic theory, sociological theory and psychological theory (Chen, Liu, and Chen, 2021). The
use of these theories is different form one another and there are various benefits which is been
taken by the entrepreneur. It has the brief context in the contemporary issues and the uncertainty
which is been happening in the business. In relation to the Sarasvathy, causation and
effectuation. There are various activities which helps the plan to achieve success in the market.
Causation is the process which helps to select various means form the plans. On the other hand,
Effectuation is the process which is been lining with possible effects they can use it in an
effective manner.
The process of Causation is logical while the other term is effectuation focused on
establishing new ideas and strategies. Nowadays with the changing market scenario most of the
entrepreneurs use the causation. It helps them to gain a competitive advantage for the business.
They can dominate the new marketing conditions by providing the better services and products

to the consumers. The entrepreneur need to set of goals which they want to achieve over a period
of time. They also need to establish an effective process through which the gaols can be achieved
prior to time (Coudounaris, and Arvidsson, 2019). The Effectuation method is used in order to
capitalise on various goals. There are set of cations which needs to be established by the
entrepreneur. The decision which are made in this process is logical and there is special effects
on choosing the particular decisions. The formulation of right strategies will help the
entrepreneur to achieve success. There are multiple common threads which is been impact the
performance of the business activities.
The causation approach could help the entrepreneurs to establish a network through
which they can carry out the activities in an effective manner. With that the accomplishment of
the goals can also been achieved in the market. The entrepreneur plans to use the resources and
implement a sustainable change in the society with the quality products and services in the e
market. It includes the allocation of right technologies, resources and carrying out the operations
efficiently (de la Cruz, Jover, and Gras, 2018). The business ventures are fragile and the
entrepreneur needs to think while implementing these two strategies for the growth. The mindset
of the entrepreneur always plays a major role in achieve best results for the business. There are
various set of skills which includes decision making, problem solving, leadership etc. It helps the
candidates to improve the performance of the business. In this new changing era there is scarcity
of resources which is been faced by most of the organisation which is working in multiple
industries. The business needs to be in the position of profits. This is the crucial factor which
makes it more sustainable in the market. There is a example which supports this scenario. The
startup named Curry in the hurry which is been established to provide better services to the
customers. It is totally based on the process of causation. This is the economic theory which is
been used in order to argue with various variables. The organisation is also achieving better
results due to the inevitability. They have also diversified their products in the market. The
organisation has the major focus to use the the universal practices which helps them to dominate
the market. There are new innovation method and continuous improvements have been
implemented by the organisation to improve the critical areas in an effective manner. There is
viability in delivering the quality services to the customers and enhance the overall sales in the
market.

Morden day entrepreneurs involves new ideas and strategies and use of various
opportunities helps them to capitalise on the desired results in the future. It is the process to
increase the overall profits for the future. The new ideology will help the entrepreneur gain
maximum profits for their firm. The entrepreneur needs to be practical there are various
uncertain situations in the market (Deng, and et.al 2021). The main focus of the knowledge is to
help them gain the desired results. There is tough competition present in the market. The
entrepreneurs have the right ability and needs to focus on the strategising results which they want
to achieve in the market. On the other hand, the entrepreneurs can take guidance form the
stakeholders. Through this they are able to provide the best results. Most of the customers
demand for new and quality products which I the major challenges for most of the business.
There are new variations which the individual needs to implement in the products and services to
make it more superior in terms of other competitors.
The best strategic example of the new modern world is the Noble and Starbucks and
Barnes. They have made multiple strategies to attract the customers. With the changing dynamic
scenario they have made the alliance to dominate the market and enhance the overall profits in an
effective manner (Galkina, and Jack, 2022). They have taken the decision process more
seriously by evaluating the performance of the prior companies. They have made the few
changes which will help them to improve the practicability of their particular organisation. There
is diverted situation which has been created in order to get better results in the market. Both the
partners have use the innovative ways of doing the promotion to create anew and valuable base
of the customers. This also helps them to retain the customers. The organisation always serve the
quality products which helps them to maintain a positive brand integrity in the market.
There are various models which is been used by the organisation in order to provide
better products. The perfect use of STP model and the porter five forces model helps them to
understand the dynamic forces which is evolving in the market (Mirvahedi, 2018). The
entrepreneurs has adapted towards the flexibility in order to help the organisation function in a
better way. There are various companies which is used the right strategies it help them to
optimise the overall performance in a significant manner. For example, the Airdi Limited is
highly attractive. They provide the hand dryers and other products to the consumers. Th
organisation use the new social media platforms which will help them to engage the customers.
They have target the audience right audience for their particular products and services. Through

this the organisation has manager to establish the highest demand of their products. They have
expend their business operations in multiple regions.
The new business have the dynamic environment there are multiple activities which is
been evolving in the market (Solesvik, 2019). There are concerns which can be arise and the
entrepreneurs needs to solve that in order to maximise the profits. The living standards can also
been improved in an effective manner. There are new ventures which needs to utilised properly
in this new world of the rising entrepreneurs.
CONCLUSION
From the above, report it has been analysed that there are various conditions and multiple
concepts which can help the entrepreneurs to achieve success in the future. On the other hand, in
this report the entrepreneur needs to improve their ideology in order to provide the better
services and products to the consumer. For further instance, there are multiple management
models through which various problems has been solved at organisational level.

REFERENCES
Books and Journals
Bloemen-Bekx, M., Lambrechts, F. and Van Gils, A., 2021. An exploration of the role of
intuitive forms of planning in the succession process: the explanatory power of
effectuation theory. Journal of Family Business Management.
Chen, J., Liu, L. and Chen, Q., 2021. The effectiveness of effectuation: a meta-analysis on
contextual factors. International Journal of Entrepreneurial Behavior & Research.
Coudounaris, D. and Arvidsson, H.G., 2019. Recent literature review on effectuation.
In International Marketing Track of the Academy of Marketing Conference (pp. 2-4).
de la Cruz, M.E., Jover, A.J.V. and Gras, J.M.G., 2018. Influence of the entrepreneur's social
identity on business performance through effectuation. European Research on
Management and Business Economics, 24(2), pp.90-96.
Deng, and et.al 2021. The double-edged sword impact of effectuation on new product creativity:
The moderating role of competitive intensity and firm size. Journal of Business
Research, 137, pp.1-12.
Galkina, T. and Jack, S., 2022. The synergy of causation and effectuation in the process of
entrepreneurial networking: Implications for opportunity development. International
Small Business Journal, 40(5), pp.564-591.
Mirvahedi, S., 2018. An Investigation of Iranian Entrepreneurs’ Decision Making Logic Based
On Effectuation Theory. Modern Research in Decision Making, 2(4), pp.229-254.
Solesvik, M.Z., 2019. Effectuation, causation and radical innovation in Norwegian firms.
In ISPIM Conference Proceedings (pp. 1-5). The International Society for Professional
Innovation Management (ISPIM).