Questions worth asking for futures worth making: an effectual approach

Author:

Sarasvathy Saras

Abstract

Abstract It is not unusual in the psychology and economics of entrepreneurship to focus on decision models based on predictive reasoning that explain outcomes such as venture creation (at the micro level), firm performance (meso level), or job creation (macro level). However, in this article, derived from the literature on entrepreneurial expertise, I argue for an embrace of uncertainty, where outcomes are not only unknown, but unknowable, hence undermining predictive criteria for actions and decisions. By focusing on principles and processes that do not entail predictive reasoning, effectuation offers both practical guidance for acting in the face of multiple uncertainties and novel research questions not yet examined through the lens of the entrepreneurial method. Specifically, I offer five possible new ventures for future research built on the five principles of effectuation. These pertain to new futures worth making, without prescribing or predicting what those would, could, or should be.

Publisher

Springer Science and Business Media LLC

Subject

Economics and Econometrics,General Business, Management and Accounting

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