Hi Makers,
We’ve covered the principles of effectuation in the article “Effectuation: a logic of entrepreneurial expertise“. Let’s move on to the next stage and compare the two entrepreneurial logics, the effectual and the causal ones.
Effectual logic is opposite to causal logic. In addition to altering conventional relationships between means and ends and between prediction and control, effectuation rearranges many other traditional relationships such as those between organism and environment, parts and whole, subjective and objective, individual and social, and so on. In particular, it makes these relationships a matter of design rather than one of decision.
Contrasting the causal model of marketing with effectuation
Predictive versus non-predictive strategies
Understandably, there is no better logic or a universal solution to build businesses. Empirically, entrepreneurs use both causal and effectual approaches, in a variety of combinations. Use of and preference for particular modes is related to the entrepreneur’s level of expertise and where the firm is in its life cycle.
As a consequence, when you are in an entrepreneurial situation, get a step back and reflect on the better logic to pursue your end. Assess the means at your hand and adapt your process to build effectively your product or service.
Make it happen!
Nico
References
- Saras Sarasvathy, “Effectuation: Elements of entrepreneurial expertise“
- Makers of Liberty, “Effectuation: a logic of entrepreneurial expertise“