Effectuation

Effectuation is an independent decision logic, which is preferably used by experienced entrepreneurs in situations of uncertainty. Effectuation can be described as reverse causal logic based on predicting the future, describe.

The effectuation approach is a result of the current global entrepreneurship research, Professor Saras Sarasvathy was from ( University of Virginia ) founded and has since then been occupied and developed empirically.

Effectuation and causal logic differ in their basic assumption about the nature of the future:

Causal Logic: Only what we can predict, we can control. Effectuation: All that we can controlling influence, we do not predict.

Effectuation principles

Attitude towards the future: The future is not predictable (the result of co-creation ) and can be made by agreement between autonomous actors. (Example: investors, partners and customers enter into agreements with respect to any future product, a new business or a not yet existing market and thereby reduce the uncertainty. )

Basis for action: Medium Orientation: The available means ( who I am, what I know and whom I know) determine which ( variable ) goals are sought ( and not vice versa).

Attitude towards risk, and resource utilization: The individually affordable loss or application (and not the expected income ) determine what opportunities are perceived and what steps are being effectively put into a project.

Attitude towards others: entering into partnerships with those who are willing to enter into binding agreements under uncertainty and to contribute their own resources to the creation of opportunity.

Attitude towards the unexpected: unexpected coincidences and circumstances that may be used as a lever and transformed into innovation and entrepreneurial opportunities.