Effectuation and Over-Trust: Debating Goel and Karri

11 Pages Posted: 18 Jun 2008

See all articles by Saras D. Sarasvathy

Saras D. Sarasvathy

University of Virginia - Darden School of Business

Nicholas Dew

Naval Postgraduate School

Abstract

In their article on entrepreneurship, effectuation, and over-trust, Goel and Karri suggest relationships between effectuation, over-trust, and certain psychological characteristics of entrepreneurs. In this response we debate their article. Goel and Karri are correct in claiming that effectuation supposes over-trust. However, we argue that effectual logic works in a different way than they presented because it neither predicts nor assumes trust. Goel and Karri's article also draws attention to the behavioral assumptions underlying constructs such as over-(under) trust. Our suggestion is that effectuation is based on alternative behavioral assumptions that open up interesting avenues for future research in entrepreneurship.

Suggested Citation

Sarasvathy, Saras D. and Dew, Nicholas, Effectuation and Over-Trust: Debating Goel and Karri. Entrepreneurship Theory and Practice, Vol. 32, No. 4, pp. 727-737, July 2008. Available at SSRN: https://ssrn.com/abstract=1147279 or http://dx.doi.org/10.1111/j.1540-6520.2008.00250.x

Saras D. Sarasvathy (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.effectuation.org

Nicholas Dew

Naval Postgraduate School ( email )

1522 Cunningham Road
Monterey, CA 93943-5201
United States

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