Effectual Reasoning and Causal Reasoning in Creating New Businesses: A Case Study

Authors

  • Juan Miguel Rosa González Mestrando em Administração UFRN
  • Miguel Eduardo Moreno Añez Universidade Federal do Rio Grande do Norte
  • Hilka Vier Machado Universidade Estadual de Maringá

DOI:

https://doi.org/10.5585/ijsm.v10i2.1718

Keywords:

Business Creation, Effectuation, Entrepreneurship

Abstract

This article focuses on the process of new business creation, considering the effectuation approach, which explains the phenomenon of entrepreneurship in a different perspective than the traditional causal approach. Beginning with a description of the effectual approach assumptions, a case study about the subject is presented in order to explore the logic of the business creation process. The case discusses a Brazilian organization created in 1980 to produce materials and services in steel industry. Through structured interview with the entrepreneur who idealized the business, the main events in the early stages of the project are described. The results show the relationship between entrepreneur’s means available at the time of the enterprise creation and the new business design. In addition, the entrepreneur preferred a strategy of drawing instead of a decision one, and gave priority to strategic partnerships as a substitute of formal market research. All these aspects are covered by the effectual approach.

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Author Biographies

Miguel Eduardo Moreno Añez, Universidade Federal do Rio Grande do Norte

Doutorado em Administração

Hilka Vier Machado, Universidade Estadual de Maringá

Doutorado em Engenharia de Produção

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Published

24.10.2011

How to Cite

González, J. M. R., Añez, M. E. M., & Machado, H. V. (2011). Effectual Reasoning and Causal Reasoning in Creating New Businesses: A Case Study. Revista Ibero-Americana De Estratégia, 10(2), 140–158. https://doi.org/10.5585/ijsm.v10i2.1718

Issue

Vol. 10 No. 2 (2011): RIAE v10n2

Section

Articles

License

Copyright (c) 2011 Iberoamerican Journal of Strategic Management

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