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Effectuation and Over–Trust: Response to Sarasvathy and Dew

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  • Ranjan Karri
  • Sanjay Goel

Abstract

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

  • Ranjan Karri & Sanjay Goel, 2008. "Effectuation and Over–Trust: Response to Sarasvathy and Dew," Entrepreneurship Theory and Practice, , vol. 32(4), pages 739-748, July.
    • Handle: RePEc:sae:entthe:v:32:y:2008:i:4:p:739-748
    DOI: 10.1111/j.1540-6520.2008.00251.x
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    References listed on IDEAS

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    1. Simon, Herbert A, 1993. "Altruism and Economics," American Economic Review, American Economic Association, vol. 83(2), pages 156-161, May.
    2. Ronald K. Mitchell & Lowell Busenitz & Theresa Lant & Patricia P. McDougall & Eric A. Morse & J. Brock Smith, 2002. "Toward a Theory of Entrepreneurial Cognition: Rethinking the People Side of Entrepreneurship Research," Entrepreneurship Theory and Practice, , vol. 27(2), pages 93-104, April.
    3. Friederike Welter & David Smallbone, 2006. "Exploring the Role of Trust in Entrepreneurial Activity," Entrepreneurship Theory and Practice, , vol. 30(4), pages 465-475, July.
    4. Ronald K. Mitchell & Lowell W. Busenitz & Barbara Bird & Connie Marie Gaglio & Jeffery S. McMullen & Eric A. Morse & J. Brock Smith, 2007. "The Central Question in Entrepreneurial Cognition Research 2007," Entrepreneurship Theory and Practice, , vol. 31(1), pages 1-27, January.
    5. Ronald K. Mitchell & Lowell Busenitz & Theresa Lant & Patricia P. McDougall & Eric A. Morse & J. Brock Smith, 2004. "The Distinctive and Inclusive Domain of Entrepreneurial Cognition Research," Entrepreneurship Theory and Practice, , vol. 28(6), pages 505-518, November.
    6. Sarasvathy, D. K. & Simon, Herbert A. & Lave, Lester, 1998. "Perceiving and managing business risks: differences between entrepreneurs and bankers," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 207-225, January.
    7. Norris F. Krueger Jr., 2007. "What Lies Beneath? The Experiential Essence of Entrepreneurial Thinking," Entrepreneurship Theory and Practice, , vol. 31(1), pages 123-138, January.
    8. Norris F. Krueger Jr., 2000. "The Cognitive Infrastructure of Opportunity Emergence," Entrepreneurship Theory and Practice, , vol. 24(3), pages 5-24, April.
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    Cited by:

    1. Nair, Sujith & Blomquist, Tomas, 2021. "Exploring docility: A behavioral approach to interventions in business incubation," Research Policy, Elsevier, vol. 50(7).
    2. Oliveira, Luis & Johanson, Martin, 2021. "Trust and firm internationalization: Dark-side effects on internationalization speed and how to alleviate them," Journal of Business Research, Elsevier, vol. 133(C), pages 1-12.
    3. Mumford, Jonathan Van & Zettinig, Peter, 2022. "Co-creation in effectuation processes: A stakeholder perspective on commitment reasoning," Journal of Business Venturing, Elsevier, vol. 37(4).

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