Effectuation and Over-Trust: Response to Sarasvathy and Dew

10 Pages Posted: 18 Jun 2008

See all articles by Ranjan Karri

Ranjan Karri

Bryant University

Sanjay Goel

University of Minnesota - Duluth


In their response to our article, Sarasvathy and Dew (S&D) agree with us that effectuation supposes over-trust and yet claim that trust is irrelevant to an effectual entrepreneur. They further claim that our approach to entrepreneurship is trait based. We respond to these comments by pointing out the more subtle ways in which entrepreneurs deal with trust. In addition, while acknowledging the utility (and limitations) of a trait-based approach in advancing entrepreneurship theory, we refute their assertions that our paper is based on this approach. Finally, we address the alternate behavioral assumptions that S&D advance. Independent of the merit of these alternate assumptions, they are not contradicted in our article. We believe that these assumptions need to be developed further to contribute to a debate on their merits for advancing theory building in entrepreneurship.

Suggested Citation

Karri, Ranjan and Goel, Sanjay, Effectuation and Over-Trust: Response to Sarasvathy and Dew. Entrepreneurship Theory and Practice, Vol. 32, No. 4, pp. 739-748, July 2008. Available at SSRN: https://ssrn.com/abstract=1147280 or http://dx.doi.org/10.1111/j.1540-6520.2008.00251.x

Ranjan Karri (Contact Author)

Bryant University ( email )

1150 Douglas Pike
Smithfield, RI 02917-1284
United States

Sanjay Goel

University of Minnesota - Duluth

1049 University Drive
Duluth, MN 55812
United States

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