What does Rudimentary theory say about entrepreneurial effectuation?

1. Affordable loss rather than expected returns: Causation models focus on maximizing the returns for a decision by selecting optimal strategies. Effectuation predetermines how much loss is affordable and focuses on experimenting with as many strategies as possible with this 2. Strategic alliances rather than competitive analyses: Causation models (Porter, 1980) emphasize detailed competitive analyses . Effectuation emphasizes strategic alliances and pre- commitments from stakeholders as a way to reduce uncertainty and to erect entry barriers. 3. Exploitation of contingencies rather than exploitation of pre-existing knowledge: Causation models seek to exploit expertise to form the source of competitive advantage. Effectuation, seeks to exploit contingencies that arise over time. 4. Controlling an unpredictable future rather than predicting an uncertain future: Causation processes focus on the predictable aspects of an uncertain future - to the extent that we can predict the future, we can control it. Effectuation, focuses on the controllable aspects of an unpredictable future - to the extent that we can control the