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Full Description
To effectuate is to engage in a specific type of entrepreneurial action. It has special importance for situations where the future is truly unknowable or human agency is of primary importance. In this new and updated edition of the bestselling Effectuation, Saras Sarasvathy explores the theory and techniques of non-predictive control for creating new firms, markets and economic opportunities. Using empirical and theoretical work done in collaboration with Nobel Laureate Herbert A. Simon, the author employs methods from cognitive science and behavioral economics to develop the notion of entrepreneurial expertise and effectuation. Supportive empirical evidence is provided by the author's study of 27 entrepreneurs as well as other independent studies. The book then traces the consequences of effectuation for business management, economics and social philosophy. The author finds that effectuators generate constraint-satisfying solutions rather than searching for optimal ones, make rather than find opportunities, and in a deep sense, convert 'as-if' propositions into 'even-if' ones. The way they accomplish this is the central discussion of the book.
Students and scholars of entrepreneurship will find this path-breaking research of great value. The book's conclusions will also be of interest to those in the fields of behavioral and evolutionary economics, cognitive science and management.
Contents
Contents: Foreword to the first edition by Lester Lave Foreword to the first edition by S. Venkataraman Introduction PART I THE EMPIRICAL JOURNEY - ENTREPRENEURIAL EXPERTISE 1. What I set out to study and why 2. What I found and how 3. Interpreting what I found PART II THE THEORETICAL JOURNEY - EFFECTUATION 4. Understanding effectuation: problem space and solution principles 5. Understanding effectuation: dynamics of the effectual process 6. Relating effectuation to performance PART III WAYPOINT 7. Entrepreneurship as a science of the artificial 8. Competitive advantages and entrepreneurial opportunities 9. Philosophy and methodology of effectual economics 10. Markets in human hope PART IV THE WAY AHEAD 11. Worlds in the making Afterword to Effectuation: what comes next? References Index
