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Do effectual approaches to entrepreneurship destroy value?
Journal article   Open access

Do effectual approaches to entrepreneurship destroy value?

Qian Ye, Jason R Fitzsimmons and Evan J Douglas
Frontiers of Entrepreneurship Research, Vol.28(4)
2008
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Abstract

Business and Management Entrepreneurship
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.

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