Effectuation: Rethinking Fundamental Concepts in the Social Sciences

Effectuation has become a popular framework for educating entrepreneurs and managers, offering a non-predictive control approach that complements the predictive control techniques of the scientific method. It has been derived from cognitive and behavioral economic studies of expert entrepreneurs and has been applied to various social sciences, challenging traditional concepts and suggesting an entrepreneurial method based on non-predictive control.

Format: Hardback
Length: 78 pages
Publication date: 13 June 2024
Publisher: Cambridge University Press

Effectuation has emerged as a fundamental framework for educating entrepreneurs and managers, drawing inspiration from cognitive and behavioral economic studies of expert entrepreneurs. Effectuation offers a novel approach to cocreate value in highly uncertain situations, emphasizing the minimization of predictive information and the transformation of control into strategy. This innovative framework has the potential to revolutionize various social science concepts, including risk and return, markets and governments, attitudes toward ends and means, opportunism and altruism, and even success and failure in strategic management. Effectuation theory challenges traditional approaches, particularly those categorized as the "sciences of the artificial" by Herbert Simon. It proposes an entrepreneurial method that relies on non-predictive control, complementing the predictive control techniques of the scientific method.

ISBN-13: 9781009475754