Effectual Reasoning and Causal Reasoning in Creating New Businesses: A Case Study

Juan Miguel Rosa González, Miguel Eduardo Moreno Añez, Hilka Vier Machado

Abstract


This article focuses on the process of new business creation, considering the effectuation approach, which explains the phenomenon of entrepreneurship in a different perspective than the traditional causal approach. Beginning with a description of the effectual approach assumptions, a case study about the subject is presented in order to explore the logic of the business creation process. The case discusses a Brazilian organization created in 1980 to produce materials and services in steel industry. Through structured interview with the entrepreneur who idealized the business, the main events in the early stages of the project are described. The results show the relationship between entrepreneur’s means available at the time of the enterprise creation and the new business design. In addition, the entrepreneur preferred a strategy of drawing instead of a decision one, and gave priority to strategic partnerships as a substitute of formal market research. All these aspects are covered by the effectual approach.

Keywords


Business Creation; Effectuation; Entrepreneurship

References


Andrade, Maria M. Introdução à metodologia do trabalho cientifico. São Paulo: Atlas, 1994.

Augier, M.; Sarasvathy, S. D. Integrating Evolution, Cognition and Design: Extending Simonian Perspectives to Strategic Organization. Strategic Organization, 2, pp. 169-204, 2004.

Bauer, M.; Gaskell, G. Pesquisa Qualitativa com texto, imagem e som. 7. ed. Petrópolis: Vozes, 2008.

Cervo, A. L; Bervian, P.A. Metodologia Científica. São Paulo: Makron Books, 2004.

Dew, N.; Read, S.; Sarasvathy, S. D.; Wiltbank, R. Outlines of a behavioral theory of the entrepreneurial firm. Journal of Economic Behavior & Organization, 66, pp. 37-59, 2008.

Dew, N.; Read, S.; Sarasvathy, S. D.; Wiltbank, R. Effectual versus predictive logics in entrepreneurial decision-making: differences between experts and novices. Journal of Business venturing, 24, pp. 287-309, 2009.

Gil, Antonio Carlos. Como elaborar projetos de pesquisa. 4. ed. – 12. reimp. – São Paulo: Atlas, 2009.

Malhotra, Naresh K. Pesquisa em marketing. Uma orientação aplicada. Porto Alegre: Bookman, 2004.

Sarasvathy, S. D. What Makes Entrepreneurs Entrepreneurial? Disponível em SSRN: http://ssrn.com/abstract=909038, 2001.

Sarasvathy, S. D; Dew, N. Entrepreneurial logics for a technology of foolishness. Scandinavian Journal of Management, 21, pp. 385-406, 2005.

Sarasvathy, S. D. Entrepreneurship as a science of the artificial. Journal of Economic Psychology, 24, pp. 203-220, 2003.

Simon, H.A. The Sciences of the Artificial. MIT Press, Cambridge, 1981.

Simon, H. A. Organizations and Markets. Journal of Economic Perspectives, 5(2), pp. 25-44, 1991.

Simon, H. A. Strategy and Organizational Evolution. Strategic Management Journal, 14, pp. 131-42, 1993.

Simon, H. A. An Empirically Based Microeconomics. New York and Melbourne: Cambridge University Press, 1997.

Venkataraman, S. The distinctive domain of entrepreneurship research. In J. Katz & R. Brockhaus (Eds.), Advances in entrepreneurship, firm emergence, and growth (Vol. 3, pp. 119-138). Greenwich, CT: JAI Press, 1997.

Vergara, Sylvia Constant. Projetos e relatórios de pesquisa em administração. 5 ed. São Paulo: Atlas, 2004.

Wiltbank, R; Dew, N.; Read, S.; Sarasvathy, S. D. What to do next? The case for non-predictive strategy. Strategic Management Journal, 27, pp. 981-998, 2006.

Yin, R. K. Case study research: design and methods. California: Sage, 1984.

Yin, R. K. Case study research: design and methods. 2. ed. California: Sage, 1994.


Full Text: PDF (Português (Brasil))

Refbacks

  • There are currently no refbacks.




Iberoamerican Journal of Strategic Management  e-ISSN: 2176-0756

Licença Creative Commons
Este obra está licenciado com uma Licença
Creative Commons Atribuição-NãoComercial-CompartilhaIgual 4.0 Internacional