Sarasvathy, Causation and Effectuation-Toward a Theoretical Shift from Economic Inevitability to
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t Academy of Management Review 2001, Vol. 26, No. 2, 243-263.
TOWARD CAUSATIONAND EFFECTUATION: A THEORETICAL SHIFTFROM INEVITABILITY TO ECONOMIC ENTREPRENEURIAL CONTINGENCY
SARAS D. SARASVATHY University of Washington
In economics and management theories, scholars have traditionally assumed the existence of artifacts such as firms/organizations and markets. I argue that an explanation for the creation of such artifacts requires the notion of effectuation. Causation rests on a logic of prediction, effectuation on the logic of control. I illustrate effectuation through business examples and realistic thought experiments, examine its connections with existing theories and empirical evidence, and offer a list of testable propositions for future empirical work.
I now am eagerly striving, for example, to get this truth which I seem half to perceive, into words which shall make it show more clearly. If the words come, it will seem as if the striving itself had drawn or pulled them into actuality out from the state of merely possible being in which they were. How is this feat performed? How does the pulling pull? How do I get my hold on words not yet existent and when they come by what means have I made them come? Really it is the problem of
Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at . http://www.jstor.org/page/info/about/policies/terms.jsp
.
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.
.
Academy of Management is collaborating with JSTOR to digitize, preserve and extend access to The Academy of Management Review.
http://www.jstor.org
t Academy of Management Review 2001, Vol. 26, No. 2, 243-263.
TOWARD CAUSATIONAND EFFECTUATION: A THEORETICAL SHIFTFROM INEVITABILITY TO ECONOMIC ENTREPRENEURIAL CONTINGENCY
SARAS D. SARASVATHY University of Washington
In economics and management theories, scholars have traditionally assumed the existence of artifacts such as firms/organizations and markets. I argue that an explanation for the creation of such artifacts requires the notion of effectuation. Causation rests on a logic of prediction, effectuation on the logic of control. I illustrate effectuation through business examples and realistic thought experiments, examine its connections with existing theories and empirical evidence, and offer a list of testable propositions for future empirical work.
I now am eagerly striving, for example, to get this truth which I seem half to perceive, into words which shall make it show more clearly. If the words come, it will seem as if the striving itself had drawn or pulled them into actuality out from the state of merely possible being in which they were. How is this feat performed? How does the pulling pull? How do I get my hold on words not yet existent and when they come by what means have I made them come? Really it is the problem of
References: Kotler, P. 1991. Marketing management. NJ: Prentice-Hall.