Affiliation:
1. Darden School of Business, University of Virginia
Abstract
Abstract
The effectual process used by expert entrepreneurs is open in the face of uncertainty and goal ambiguity. But, for the most part, it is not intentionally innovative. Even though it increases the probability of innovation, that innovation typically occurs in spite of, rather than because of, effectuators’ intentions to innovate. Open innovation, in contrast, is conceptualized as purposive use of knowledge flows across organizational boundaries, the purpose presumably being to innovate. Given that the effectual process often begins before there is an organization or even an idea for one, the “openness” in effectuation takes on additional flavors and textures to that found in studies of open innovation. In addition to outlining areas of overlap and difference between effectuation and open innovation, this chapter will also outline the various meanings of “open” and examine their implications for open questions in research and practice, in and out of entrepreneurship.
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