Causation and Effectuation in Contemporary Management Issues

Essay

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Business entrepreneurs in 21st century are required to anticipate change as well as be agile
for dealing with management issues which are coming from all angles (Scott, Klandt and Rosa,
2018). Management challenges have always faced by enterprises, however, things are changing
in 21st century along with challenges which companies require to overcome for securing future
success. Organisations operating at local or global level need to over contemporary management
issues for achieving competitive sustainability. Effectuation and causation are terms which
provide insights about the ways decisions are devised in new venture creation in addition to
understanding dynamics of management issues in contemporary international environment of
business. The aim of the essay is to discuss about artefacts including firms, organisations and
markets requiring novel approach to venture creation concept.
The essay highlight information about causation and effectuation with relevance to
understanding dynamic of management issues of business in contemporary business environment
internationally.
MAIN BODY
Causation is said to a typical end driven decision making logic in which managers plan,
execute together with follow up strategic decisions which are aimed towards attaining particular
goal or topic. It is delineated as process which take effect as provided and emphasis on choosing
among means for creating the effect. In accordance to Villani, Linder and Grimaldi (2018),
artefacts, such as firms and organisations in their nascent stages tend to employ effectuation at
initial level and then shift to causation when achieve growth in resources together with network
(Villani, Linder and Grimaldi, 2018). Most of business concerns have target for sharing ideas
together with providing resources effectively. For example, while planning a new venture, such
as HungryPanda, entrepreneur makes use of causation approach to plan tactics to achieve
predetermined goals and deal with contemporary management issues in dynamic business
environment.
In new venture creation, concept of causation takes specific effect by entailing picking of
target segments as pet predictive information. Business managers in contemporary business
environments use causation for the identification of resources at a specific point in time as well
as using them in flexible manner (Futterer, Schmidt and Heidenreich, 2018). With causation,
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