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Effectuation and Over–Trust: Debating Goel and Karri

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  • Saras Sarasvathy
  • Nicholas Dew

Abstract

In their article on entrepreneurship, effectuation, and over–trust, Goel and Karri suggest relationships between effectuation, over–trust, and certain psychological characteristics of entrepreneurs. In this response we debate their article. Goel and Karri are correct in claiming that effectuation supposes over–trust. However, we argue that effectual logic works in a different way than they presented because it neither predicts nor assumes trust. Goel and Karri's article also draws attention to the behavioral assumptions underlying constructs such as over–(under) trust. Our suggestion is that effectuation is based on alternative behavioral assumptions that open up interesting avenues for future research in entrepreneurship.

Suggested Citation

  • Saras Sarasvathy & Nicholas Dew, 2008. "Effectuation and Over–Trust: Debating Goel and Karri," Entrepreneurship Theory and Practice, , vol. 32(4), pages 727-737, July.
    • Handle: RePEc:sae:entthe:v:32:y:2008:i:4:p:727-737
    DOI: 10.1111/j.1540-6520.2008.00250.x
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    References listed on IDEAS

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    8. Strøm,Steinar (ed.), 1999. "Econometrics and Economic Theory in the 20th Century," Cambridge Books, Cambridge University Press, number 9780521633239.
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    Cited by:

    1. Hawa, Joelle & Baker, Jonathan & Plewa, Carolin, 2020. "Composing markets: A framework of intentionality in market-shaping," Journal of Business Research, Elsevier, vol. 121(C), pages 47-57.
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    3. Martín-Navarro, Alicia & Velicia-Martín, Felix & Medina-Garrido, José Aurelio & Palos-Sánchez, Pedro R., 2023. "Impact of effectual propensity on entrepreneurial intention," Journal of Business Research, Elsevier, vol. 157(C).
    4. Onwuegbuzie, Henrietta N. & Mafimisebi, Oluwasoye P., 2021. "Global relevance of scaling African indigenous entrepreneurship," Technological Forecasting and Social Change, Elsevier, vol. 166(C).

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