Struggling and Thriving: Effectuation in Social and Economic Stress

Abstract

How do citizens respond when provisioning systems are severely changed and curtailed? We apply effectuation theory from the entrepreneurship literature to address a socio-economic issue. We used an online survey and collected data from 1014 citizens in Iran to investigate how an effectual logic of thinking as a psychological framework enables some citizens of a non-Western country to address the uncertainties caused by international economic sanctions and sustain their well-being. We find that optimistic members of society use their effectual logic to enhance their satisfaction with life and social and economic sustainability in the medium-longer run. This study contributes to the multifactorial view of quality of life as well as effectuation theory and enhances our understanding of social sustainability and how it can be cultivated. Implications for policymakers are provided.