Effectuation

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

Effectuation can be applied in companies, not just only in entrepreneurship. Companies can use effectuation to innovate, adapt to changes, and solve problems in company's operations. Effectuation helps companies to identify how to make the most of what they have and what they know, not only depends on the planning (Sarasvathy, 2001).

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

Effectuation focuses on using what you have and who you know to create opportunities, while other approaches start with a predefined goal and try to figure out how to achieve it. Effectuation is more about adapting to the situation and being flexible, while other approaches might rely more on prediction and planning (Mansoori & Lackeus, 2018).

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

No. Effectuation emphasises using existing opportunities to create new paths, while the traditional causal approach relies on planning and prediction to achieve goals (Sarasvathy, 2001).

4. Does effectuation mean: "not planning"? 

No. Effectuation involves a different way to planning compared to traditional methods. Instead of starting with a predetermined goal and planning how to achieve it, effectuation involves adapting plans based on existing resources and opportunities (Sarasvathy, 2001).

5. Are Effectuation and Lean Startup compatible?

Effectuation and Lean Startup can be compatible, as they share some common principles. Both approaches advocate for taking action, testing hypotheses, and adapting based on real-world feedback. However, they also have differences as Lean Startup focuses on validating hypotheses through rapid experimentation and customer development, while effectuation emphasises leveraging existing resources to co-create value. (Sebastiao, 2014)

References

Sarasvathy, S. D. (2001). Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency. the academy of Management Review, 26(2), 243. https://doi.org/10.2307/259121

Mansoori, Y., & Lackeus, M. (2018). Comparing effectuation to discovery-driven planning, prescriptive entrepreneurship, business planning, lean startup, and design thinking. Small Business Economics, 54(3), 791–818. https://doi.org/10.1007/s11187-019-00153-w

Sebastiao, H.. (2014, June 12). How Effectuation + Lean Startup = Lean Entrepreneurial Thinking & Acting (LETA). https://www.linkedin.com/pulse/20140612225801-11777433-how-effectuation-lean-startup-lean-entrepreneurial-thinking-acting-leta