Do Effectual Approaches to Entrepreneurship Destroy Value?
Babson College, Babson College Entrepreneurship Research Conference (BCERC) 2008
Frontiers of Entrepreneurship Research, 2008
12 Pages Posted: 4 Mar 2009
Abstract
This paper explores the decision making processes involved in effectual logic and the relationship between behavioral biases and the effectual thinking related to entrepreneurial decision making. We consider the reasons why entrepreneurs may have a natural tendency towards effectual approaches and demonstrate under what conditions effectual processes might in some cases lead to less than desirable outcomes. We propose that entrepreneurs like other decision makers can be susceptible to behavioral biases, which can affect their effectual approaches that can either enhance or lead to less than desirable outcomes.
Keywords: Entrepreneurship
JEL Classification: M13
Suggested Citation: Suggested Citation