GROUP BLOG 5

 



1. Can effectuation also be used in companies? Or is it useful only for entrepreneurship? Madda- TP073377

Effectuation is a way of thinking and decision-making that is based on the idea that entrepreneurs create their future by taking action and making things happen.  Effectuation may also be useful for medium sized and big companies. Effectuation is a method for making decisions in situations of uncertainty. Companies also face situations when there is no previous information to frame upcoming decisions.(Morales, 2020)

2. What is the key difference between effectuation and other approaches in entrepreneurship? - Madda TP073377

The key differences between the effectuation framework and other entrepreneurship frameworks are that effectuation focuses on reasoning from a given set of means to new imagined ends, while other frameworks may rely on up-front planning and causal reasoning. (SciSpace, 2023)

3. Are the effectual approach and the traditional (causal) approach mutually exclusive? Amna

Effectuation and the traditional causal approach are not mutually exclusive. Effectuation is a complementary approach that emphasizes opportunities presented by the existing resources of the venture. Planning can help entrepreneurs determine if a venture's resources can support the development and scaling of new products or services. Effectuation, as opposed to "not planning", is an emphasis on the interactive decision-making process to guide the firm's development, strategy, and product/service offerings from the resource lens of the firm.

4. Does effectuation mean: "not planning"? Amna

Effectuation and Lean Startup principles can complement each other effectively. Both emphasize experimentation through a series of minimum viable experiments (MVEs) to learn about customer preferences and market fit. The effectual approach can be used to increase the resource potential of a Lean Startup, and adaptive learning can benefit from the effectual focus on creativity and collaboration with stakeholders.

5. Are Effectuation and Lean Startup compatible? 





REFERRENCES

Dr. Carlos Morales (28 April, 2020) “Effectuation in Five Questions.” Www.linkedin.com, www.linkedin.com/pulse/effectuation-five-questions-dr-carlos-morales#:~:text=Yes%2C%20effectuation%20can%20be%20%E2%80%93%20and.

SciSpace (August, 2023)What are the key differences between the effectuation framework and other entrepreneurship frameworks? | 4 Answers from Research papers. (n.d.). SciSpace - Question. https://typeset.io/questions/what-are-the-key-differences-between-the-effectuation-wh6ieuasy6

Browder, T., & Kurasaki, D. (2018). Lean Start-Up and Effectuation for New Venture Creation: Bridging the Gap. Academy of Strategic Management Journal, 17(4), 1-11.

Haynie, J. M., Shepherd, D. A., & Mosakowski, E. (2010). A problem-based approach to building entrepreneurship education programs. Journal of Small Business Management, 48(4), 446-467.

Sarasvathy, S. D. (2010). Effectuation: Elements of entrepreneurial expertise. Edward Elgar Publishing.

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