Entrepreneurial articles - Brettel et al.: Corporate effectuation: entrepreneurial action and its impact on R&D project performance

8 important questions on Entrepreneurial articles - Brettel et al.: Corporate effectuation: entrepreneurial action and its impact on R&D project performance

What is effectuation? (Brettel)

Processes that start with 'a set of mean as given and focus on selecting between possible effects that can be created with that set of means'. Effectuation is a general theory of decision making in uncertain situations that focus on human actions as the predominant factor shaping the future.

Explain how effectuation works according to Brettel?

Effectuation is creating on something new with existing means. Relevance sources may be existing competencies and project experiences (Who I am), skilled employees and experts in R&D (What I know), relationships with partners through R&D networks (whom I know), and financial means and tangible assets lik R&D equipment (what I have).
> These resources are the initial basis for projects.

What are the findings of Brettel?

The findings indicate that a goals-driven approach is significantly more strongly related to R&D output when innovativeness is low (than when it's high).
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What was the objective of the study of Brettel?

To analyze the effects of effectuation and causation practices in the corporate R&D context.

How can managers deal with projects with high levels of innovativeness? (Brettel)

Via effectuation: managers need to rethink internal processes in favor of forming effectual cells that allow for a more means-oriented innovation approach. Leaving room for individual projects that are means-based (entrepreneurial) may be they key to driving corporate innovation capabilities.

What is the core conclusion of Brettel?

Effectuation works in highly innovative environments. Causation better in normal environments.

Effectuation vs Causation is 4 comparisons? (Brettel)

Means driven vs project targets
Advance commitments vs expected returns
Partnerships vs competitor analysis
Unexpected opportunities vs moves to reach targets

What does Brettel means with the fuzzy front-end?

The periode between the opportunity recognitions and first judgment.

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