Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
38 Cards in this Set
- Front
- Back
|
What is a causational process? |
Processes take a particular effect as given and focus on selecting means to create that effect |
|
|
What is a effectuation process? |
Processes take a set of means as given and focus on selecting between possible effects that can be created with that set of means (e.g. Ingredients given - but the menu isnt so you can be as creative as you want). |
|
|
What are the steps in the causation approach? |
Opportunitify Identification Adapt to changing environment |
|
|
What are the steps in the effectuation approach |
Itterative process Assess means: (who am i, what i know, who i know) What can i do? Obtain partner commitments New goals / new means Go back to assess means (Read et al. 2009) |
|
|
Differences in decision making (causation vs effectuation |
Choose means to achieve effect (expected return) VS choose between possible effects (acceptable risk) |
|
|
4 effectuation principles |
Bird in hand Affordable Loss Lemonade principle |
|
|
Bird in hand principle |
work with the means you already have in hand. Use these means to form the basis for decisions and new opportunities |
|
|
Example means (bird in hand) |
Who am i? What kind of network |
|
|
Definition affordable loss |
Dont base decisions on expected return, but isk no more than you can afford to lose |
|
|
Crazy Quilt Principle |
Dont focus on competition, but focus on co-creation This principle gives you access to new means (means of your partner) |
|
|
Lemonade Principle |
Look at surprise as new resources that you can add to you existing means - use surprise to your advantage - surprises add to the means - surprises can change goals |
|
|
2 ways of opportunity generation |
Creation and discovery |
|
|
Opportunity discovery |
objective perspective - (e.g. - only the first two people who conquered the mount everst are known - following later is normally less succes and less known) |
|
|
Opportunities arise exogenously from changes in: |
Technology Customer preferences |
|
|
Characteristics of discovery |
Independents of individual perceptions or actions arise exogenously (observable to anyone) Can only be seen by alert individuals (entrepreneurs) - who possess the qualities to both discover and exploit the opportunity |
|
|
Creation arisies endogenously by: |
Actions reactions enactment of entrepreneurs |
|
|
Characteristics of creation |
Created by individuals validated through social cross-validation iterative process endogenously Are created out of nothing |
|
|
Two types of discovery |
Passive (surprise) |
|
|
Passive discovery |
Discover by accident opportunities are unkown until discovered people cannot search for the unkown allertnes |
|
|
Active discovery |
Treasure hunters (analytical approach) meet customer needs |
|
|
Important factors in opportunity discovery |
Allertness Passive and active search Prior knowledge |
|
|
Prior knowledge in: |
Work experience personal events education customer problems ways to serve the market |
|
|
Creation theory |
Entrepreneurs are breaking away from established forms and face the challenge of creating new knowledge themselves |
|
|
Discovery theory |
Exogenous view Risky Causation |
|
|
Creation theory |
Endogenous view uncertain effectuation |
|
|
Definition expected return |
Calculate upside potential and pursue the risk (risk adjusted) best opportunity with the highest outcome |
|
|
Emphasis of causation |
Predicts future pre determining the commercialization goals making an accurate judgement about the values of specific opportunities discover opportunities under conditions of risk |
|
|
Emphasis of effectuation |
Experimentation Affordable loss Using means at the immediate disposal creates opportunities (shapes future) |
|
|
Definition of serendipity |
pleasant surprise *find something different *more favorable to your needs |
|
|
Definition of juxtaposition |
close together, side by side comparison or contrast Juxtaposition is the formal operating space of serendipitice. Space where we make unexpected connections between subject matter |
|
|
serendipitous discovery |
search activity leading to discovery of something the entrepreneur wasnt looking for |
|
|
Serendipity requires the combination of / |
3 domains - search, prior knowledge and contingency |
|
|
Effectuation definition |
Effectuationtakes a set of means as given and focus on selecting between possible ends thatcan be created with that set of means |
|
|
Causation definition |
The end isgiven and the entrepreneur focuses on selecting between different sets of meansto create that end. |
|
|
Luck |
Luck is only situated in the domain of contingency |
|
|
Luck does not |
Presuppose search acitivity or prior knowledge of the entrepreneur |
|
|
Example: Columbus |
Domain of search --> Searching for a passage to india |
|
|
Serendipity |
Requires juxtaposition not the same as luck |
