Effectuation and Causation: Contemporary Entrepreneurial Issues

Effectuation and
Causation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
Critically assessing the theoretical model entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations like
climate change and others ..........................................................................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The contemporary management is one type of approach which assist the individual to
evaluate various business functions in one time which are carried by employees in workplace.
The various types of activities which are carried by organization are utilization of new tools and
tactics, planning the operations and so on. There are various investors which produce direct
impact on the organization. Because they monitored all over activities of the firm and also assist
the higher authority to use the resources in optimized manner (Baaken, Alfert and Kliewe, 2019).
The report will cover critically evaluate the view that theoretical model of entrepreneurship has
little relevance in the contemporary business context characterised by uncertainty and major
global dislocations like climate change. Due to the effective utilization of effectuation and
causation concept various companies are able to identify the strength and weakness in their
business effectively. Due to this the needs and desires of customers are easily fulfilled in time.
TASK
Critically assessing the theoretical model entrepreneurship has little relevance in the
contemporary business context characterised by uncertainty and major global dislocations
like climate change and others
The entrepreneurship is defined as the procedure developing new type of business from
the scratch. There is a procedure which is required to save in mind that if entrepreneur creates
new tactics and ideas to gain better output of the company in market. That means they require to
use the resources in efficient way which leads to increase the overall revenue and performance of
firm at higher rate. Mainly there are four kinds of theories which is followed by many
organizations and those are cultural theory, sociological theory, psychological theory and
economic theory. The utilization of these theories is not similar from one another and also have
various kinds of advantages which is take by the entrepreneur. In context to Sarasvathy,
effectuation and causation both are plays the major role in the success and failure of company. In
respect of effectuation, it is the procedure which is being lining with possible impacts, they can
be utilized in efficient way. But in respect to causation, it is the procedure which assist the
company to select different means to form a plan. There are different kinds of functions which
assist the plan to gain high success rate in market.