The nature of the entrepreneurial process: Causation, effectuation, and pragmatism

Abstract

This paper forms an appreciation of and a critical reflection on Sarasvathy’s work on causation and effectuation models of entrepreneurship. While Sarasvathy has made significant contributions to the field, it is suggested that a more fruitful approach can follow if two modifications are made. First, it is argued that the six dimensions on which the two models differ are independent and therefore that it is more fruitful to focus on the dimensions rather than on the two models. Second, it is argued that a pragmatist view on entrepreneurship is most fruitful when it is not applied at the level of the entrepreneurial process but at the level of the underlying human actions.