Sarasvathy’s Theory: Causation and Effectuation in Entrepreneurship

Contemporary Management

Table of content
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Entrepreneurship and innovation challenge the traditional model of entrepreneurship............................3
Sarasvathy’s seminal article represents useful stand in entrepreneurship research..................................4
Novel perspective on expansion of new ventures and examples..............................................................6
CONCLUSION...........................................................................................................................................7
REFERENCES............................................................................................................................................8

INTRODUCTION
Causation and Effectuation is all above refers to new decision-making activity which
done by and used by entrepreneur effective process. It includes understanding or multiple
practices, evolution identification of market requirement, availability of resources that they have
or not and many more which is mainly done by successful goal achievement (Silva, Guimarães
and Castro, 2021). This study will provides information about Sarasvathy’s theory which mainly
refers to that new idea making activity and implementing activities in entrepreneurs and it will
useful for the determination of development of new business is beneficial or not.
MAIN BODY
Entrepreneurship and innovation challenge the traditional model of entrepreneurship
Traditional model of entrepreneurship refers to activities which done within specific
timing. It includes that entrepreneur has responsibilities like they have to evaluate market has
requirement of product or not, hire employee for sales, management, safety and many more.
Innovation and entrepreneurship: Innovation refers to new idea to generate new business
achievement and development of best result. Entrepreneurship is all above refers to activity
which includes identification of new opportunities with effective innovative ideas and continues
decision-making activities done by evaluation and identification of market requirements and
variations (Uehara, 2020).
Entrepreneurship decision-making activity affects by and implements changes according
to evaluation and identification of new changes in economic situation. Diversification in
environment like continues variation in people life styles, perspective about product and services
more engagement towards with expensive an exclusive brands and many more.
Innovation challenges like traditional model people mainly consider to buying services
from specific timing but after engagement of digitalization and when audience influence by this
concept entrepreneur has responsibility to generate twenty four hours services provide to
audience. Because people consider to use this approaches for influencing or affecting business
effectiveness.