Is Effectuation Lachmannian? A Response to Chiles, Bluedorn, and Gupta (2007)

Batten Institute Research Paper No. # 2008 S 3

Organization Studies, Vol. 29, No. 2, pp. 239-245, 2008

Posted: 13 Aug 2009

See all articles by Saras D. Sarasvathy

Saras D. Sarasvathy

University of Virginia - Darden School of Business

Nicholas Dew

University of Virginia - Darden School of Business

Date Written: 2008

Abstract

In an excellent recent paper on Ludwig Lachmann’s contributions to entrepreneurship, Chiles, Bluedorn and Gupta draw parallels between Lachmann’s work and later contributions in the entrepreneurship literature, including Sarasvathy (2001), suggesting that, ‘Sarasvathy’s economic approach to entrepreneurship is decidedly Lachmannian’ (Chiles et al. 2007: 487). Our purpose in responding to the Chiles et al. article is twofold. First, our interpretation about how effectuation works differs in certain ways from the interpretations placed on it by these authors; we therefore wish to clarify our views on these matters. Second, we view the relationship between effectuation and Lachmann’s perspective on entrepreneurship somewhat differently than Chiles et al.; in this note we lay out this alternative view. The crux of our presentation is that, although Lachmann and Sarasvathy have much the same starting point (entrepreneurial action in the face of true uncertainty) and several overlaps in terms of the overall implications for dominant economic theories, there are crucial differences that draw upon recent developments in our understanding of how the human mind works and what knowledge is constituted of.

Suggested Citation

Sarasvathy, Saras D. and Dew, Nicholas, Is Effectuation Lachmannian? A Response to Chiles, Bluedorn, and Gupta (2007) (2008). Batten Institute Research Paper No. # 2008 S 3, Organization Studies, Vol. 29, No. 2, pp. 239-245, 2008, Available at SSRN: https://ssrn.com/abstract=1437172

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

University of Virginia - Darden School of Business

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

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