Causation and Effectuation: Towards A Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency

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Table of Contents
INTRODUCTION....................................................................................................................3
MAIN BODY............................................................................................................................3
REFERENCES.........................................................................................................................8

Topic- “Causation and Effectuation: Towards A Theoretical Shift from Economic
Inevitability to Entrepreneurial Contingency” by Sarasvathy
INTRODUCTION
Causation approach of entrepreneurship defines that entrepreneur lays emphasis on
predefined objectives and focus in determining strategies through which they can meet their
desired objectives. Whereas, the effectuation approach states that entrepreneurs focus in
means at hand where they focus in materializing into one or more objectives which were not
predefined (Entrepreneurial: Causation vs. Effectuation, 2017). The process of effectuation
is actor dependent whereas, the process of causation is effect dependent. Causation resets on
logic of prediction whereas, effectuation resets on the logic of control. This essay will
determine and develop the decision model which defines the process of effectuation rather
than causation. The essay will depict the use of innovation in new business.
MAIN BODY
Causation is the process which takes a particular effect as given and focuses on
selecting between the means to develop that effect. Causation can be termed as the processes
which takes a particular effect as given and focus on selecting between means to create that
effect. Effectuation is the processes which takes a set of means and focus in selecting
between the possible effect which can create set of means. The difference between causation
and effectuation is in the set of choices. The similarity between both the factors is that both
acts as integral part of human reasoning.
The process of effectuation supports entrepreneurs to develop more than one possible
effects which are irrespective of generalized end goals which are started. This supports
decision maker to change their objectives and shape them over coming times through which
they can make use of contingencies which can arise. In some cases, effectuating
entrepreneurs vision appears to engage more than the evaluation of opportunities which
involves the creation of opportunity as the element of implementation of entrepreneurial
process.
As an example, if we talk about the curriculum of any MBA classroom, around which
the conversation must be revolving- globally in any classroom, it would be around decisions,
that is, talking about how a decision to be made- on what basis, what things to keep in mind;