Contemporary Management Issues in the 21st Century

This report discusses contemporary management issues and focuses on Sarasvathy's seminal article on entrepreneurship research and effectuation process. It critically evaluates the view that Sarasvathy's article represents an important strand in entrepreneurship research and gives us a novel perspective on the development of new ventures. The report also covers the differences between causation and effectuation processes and their impact on entrepreneurship. The subject is management, and the course code, name, and college/university are not mentioned.

Contemporarry
Management Issues in 21
st Century

Table of Contents
INTRODUCTION ..........................................................................................................................4
MAIN BODY...................................................................................................................................4
Critically evaluate the view that sarasvathy’s seminal article represents an important strand in
entrepreneurship research and gives us a novel perspective on the development of new
ventures.......................................................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Contemporary issues in management is basically an edited collection of research papers.
It is very useful for scholars, researchers and educators in the area of management. It is specially
concerned with organisational behaviour. There are different kinds of contemporary issues from
perspective of management(Advantage., 2020). It includes uncertainty about the future, well
being of employees, tracking team productivity, shaping company culture, supporting diversity
and inclusion in the workplace. In the present report, it covers discussion about an article and it
is taken into consideration. The article is related to causation and effectuation which is towards a
theoretical shift from economic inevitability to entrepreneurial contingency. In the present report,
the report will cover analysis about Sarasvathy's important strand in entrepreneurship research.
In addition to this, the report will cover discussion about development of new ventures with
support of business examples.
MAIN BODY
Critically evaluate the view that sarasvathy’s seminal article represents an important strand in
entrepreneurship research and gives us a novel perspective on the development of new
ventures
According to article of Sarasvathy, effectuation basically describes about an approach to
making decisions and perform actions in entrepreneurship processes where an individual identify
the next best step in terms of assessing the resources that are available in order to achieve goals
into appropriate manner. According to her there are basically four principles of effectuation
which includes Brand in hand where an individual has to create solutions with the resource
availability. Next is about lemonade principle where surprises and mistakes are inevitable and
can be used in the form new opportunities. In addition to this, crazy quilt where entry into new
partnership can bring new directions and new funds for the project as well. Last principle is
about affordable loss where an individual can invest up to that extent where they are willing to
lose. These four principles are useful in terms of entrepreneurship process for executing and
planning the next best step(Berman and et.al., 2021). A causation approach in entrepreneurship is
that where entrepreneurs focuses on a predefined goal and then plan for aiming towards to find
the means to reach towards the goal.

It also implies that entrepreneurs focuses on the means at hand which they focus towards
materializing into one or more goals which are not necessarily predefined. From view point of
Sarasvathy, there are two ways the task can be organised and it is involved in the process of
causation and effectuation. It can be understood through an example where client picks out a
menu in advance and all the chefs need to do list the ingredients that are required and shop for
them, after that meal has been cooked(Cutcliffe and et.al., 2016). It is basically process of
causation and under this process it takes a particular effect as given and focuses on selecting
between means to create that effect. In the second case the host ask the chef to look through
cupboards in the kitchen for possible ingredients and required, and then shop for it and finally
cook for the final meal. It is a process of effectuation where it takes a set of means as given and
focuses on selecting between possible effects that can be created with that set of means. There
are lots of examples which can explain this concept where causation and effectuation plays a
very important role in terms of entrepreneurship. Carpenter and curry examples are the best way
of explaining this concept.
Effectuation means that a business need to start with available resources whereas
causation means that business have to start from a very initial level. There are certain differences
between causation and effectuation. Under causation process effect is given whereas effectuation
process has to start with particular means and tools which are given. The decision making criteria
is also different in both the processes. Under causation process, the selection criteria is based on
expected return and effectuation process involves that decision criteria where selection criteria is
based on affordable loss or acceptable risk(Lim and Lim., 2017). The competencies which need
to be employed that they should be excellent at exploiting knowledge whereas under process of
effectuation they have to be excellent at exploiting contingencies. Causation process is
ubiquitous in terms of nature whereas effectuation process is more ubiquitous in terms of human
action. The causation process focuses towards predictable aspects of uncertain future whereas
effectuation process focuses towards controllable aspects of an unpredictable future. The
underlying logic behind causation process is that future can be predicted and can also control it
whereas under effectuation process future can be controlled and there is no need to predict it.

The outcome of causation process is that market share can be determined through existent
markets with support of competitive strategies whereas under effectuation process new markets
have been created through alliances and cooperative strategies. From the point of view of
entrepreneurship these two processes have different kind of approach in this world (Medlock and
et.al., 2018). One process is that where businesses have to start from a very initial level or can
say from zero base level due to which they have to do lots of research into the market for
understanding market into closer form. They have to find out sponsors and investors for
themselves which needs lots of hard work and efforts as well. For starting business they need
promotional strategy which needs to be effective and they have to face competition level on
higher scale due to which entrepreneur has to take lots of efforts for establishing their business.
They have to analyse the market in such a manner that they can grasp attention of large number
of customers. They have to do segmentation, targeting and positioning into effective manner so
that they can stand competitively into the market. In the overall manner, an entrepreneur has to
do start from zero level and they have to do extra effort on every level to reach out to their final
objective and target as well.
On the other hand, under second way an entrepreneur has to start with available resources
due to which an entrepreneur can't think in an out of box manner. With limited resources they
can initiate their business but there is no guarantee of success as well(Sommerfeldt and Yang.,
2017). It is due to reason that they have to face competitors and it is possible that idea and base
level of business can be same due to which it becomes challenging to stand strongly into the
market. With limited availability of resources they do not need to do extra effort but they have to
take care that their business concept can't be copied by someone else. They have to be very clear
about their legal terms and conditions due to which they need their financial parameter very
strong. With support of limited resources , it is difficult to analyse which assets are available
with them. It leads to resources that are spread in a very thin manner causing projects to be
understaffed and under equipped. It creates a system of inefficiencies that leads the team into
longer hours for meeting out the project goals(Tan and et.al., 2016).Although limited resources
are helpful in standing in the market at initial level but its is challenging in terms of long run. So
this process or this kind of approach adopted by an entrepreneur is difficult to adopt but can be
easier at initial level.

From point of view of development of ventures these two processes are helpful but
somewhere it is difficult to follow these processes (Zmuncila., 2020). Ventures are basically
combination of two companies which comes together for a common purpose. For development
of ventures it is difficult to follow both these processes and comes together. They have their
point of views, ideas in terms of business and it is difficult to cooperate with each other.
CONCLUSION
The above stated report concludes that causation and effectuation plays avery important
role in terms of business. According to this article for doing a particular task they follow two
processes. These two processes somewhere helpful up to some extent but to a certain extent it is
not very successful. For an entrepreneur it is very challenging to start from a very initial level
whereas with availability of limited resources it is difficult to give unique feature into the market.
For standing out competitively into the market it is required that a business has to plan and
strategise themselves into effective and result oriented manner as well.

REFERENCES
Books and Journals
Advantage, C., 2020. Corporate Social Responsibility. CSR and Socially Responsible Investing
Strategies in Transitioning and Emerging Economies, 65.
Berman and et.al., 2021. Human resource management in public service: Paradoxes, processes,
and problems. CQ Press.
Cutcliffe and et.al., 2016. Considering the contemporary issues and unresolved challenges facing
therapeutic communities for clients with alcohol and substance abuse. Issues in mental
health nursing, 37(9), pp.642-650.
Lim, M. Y. S. and Lim, A., 2017. Governmentality of early childhood education in Singapore:
Contemporary issues. In Early childhood education in Chinese societies (pp. 185-215).
Springer, Dordrecht.
Medlock and et.al., 2018. Racism and psychiatry: Contemporary issues and interventions.
Springer.
Sommerfeldt, E. J. and Yang, A., 2017. Relationship networks as strategic issues management:
An issue-stage framework of social movement organization network strategies. Public
Relations Review, 43(4), pp.829-839.
Tan and et.al., 2016. The international association for the study of lung cancer consensus
statement on optimizing management of EGFR Mutation–Positive Non–Small cell lung
cancer: status in 2016. Journal of Thoracic Oncology, 11(7), pp.946-963.
Zmuncila, L., 2020. Self-assessment in quality management of university education. In The
contemporary issues of the socio-humanistic sciences (Vol. 11, pp. 99-100).