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New market creation through transformation

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  • Saras Sarasvathy

    ()

  • Nicholas Dew

    ()

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    Abstract

    Is new market creation a search and selectionprocess within the theoretical space of all possible markets? Or is it the outcome of a process of transformation of extant realities into new possibilities? In this article we consider new market creation as a process involving a new network of stakeholders. The network is initiated through an effectual commitment that sets in motion two concurrent cycles of expanding resources and convergingconstraints that result in the new market. The dynamic model was induced from two empirical investigations, a cognitive science-based investigation of entrepreneurial expertise, and a real time history of the RFID industry. Copyright Springer-Verlag Berlin/Heidelberg 2005

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Evolutionary Economics.

    Volume (Year): 15 (2005)
    Issue (Month): 5 (November)
    Pages: 533-565

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    Handle: RePEc:spr:joevec:v:15:y:2005:i:5:p:533-565

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    Related research

    Keywords: New market creation; Effectuation; Networks; Entrepreneurship;

    References

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    Citations

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    Cited by:
    1. Nicholas Dew & Stuart Read & Saras Sarasvathy & Robert Wiltbank, 2011. "On the entrepreneurial genesis of new markets: effectual transformations versus causal search and selection," Journal of Evolutionary Economics, Springer, vol. 21(2), pages 231-253, May.
    2. Kathryn Pavlovich & Patricia Corner, 2014. "Conscious Enterprise Emergence: Shared Value Creation Through Expanded Conscious Awareness," Journal of Business Ethics, Springer, vol. 121(3), pages 341-351, May.
    3. Brush, Candida G. & Ceru, Dennis J. & Blackburn, Robert, 2009. "Pathways to entrepreneurial growth: The influence of management, marketing, and money," Business Horizons, Elsevier, vol. 52(5), pages 481-491, September.
    4. Steffen Korsgaard, 2011. "Opportunity formation in social entrepreneurship," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing, vol. 5(2), pages 265-285, September.
    5. Tuija Mainela & Vesa Puhakka, 2009. "Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets," Journal of International Entrepreneurship, Springer, vol. 7(2), pages 111-134, June.
    6. Wiltbank, Robert & Read, Stuart & Dew, Nicholas & Sarasvathy, Saras D., 2009. "Prediction and control under uncertainty: Outcomes in angel investing," Journal of Business Venturing, Elsevier, vol. 24(2), pages 116-133, March.
    7. Nicholas Dew & Saras Sarasvathy, 2007. "Innovations, Stakeholders & Entrepreneurship," Journal of Business Ethics, Springer, vol. 74(3), pages 267-283, September.
    8. repec:eme:jecpps:v:5:y:2011:i:4:p:265-285 is not listed on IDEAS
    9. Dorado, Silvia & Ventresca, Marc J., 2013. "Crescive entrepreneurship in complex social problems: Institutional conditions for entrepreneurial engagement," Journal of Business Venturing, Elsevier, vol. 28(1), pages 69-82.
    10. Berg, Nathan, 2010. "Success from Satisficing and Imitation: Entrepreneurs’ Location Choice and Implications of Heuristics for Local Economic Development," MPRA Paper 26594, University Library of Munich, Germany.
    11. Jonas Gabrielsson & Diamanto Politis, 2011. "Career motives and entrepreneurial decision-making: examining preferences for causal and effectual logics in the early stage of new ventures," Small Business Economics, Springer, vol. 36(3), pages 281-298, April.
    12. Dew, Nicholas & Read, Stuart & Sarasvathy, Saras D. & Wiltbank, Robert, 2008. "Outlines of a behavioral theory of the entrepreneurial firm," Journal of Economic Behavior & Organization, Elsevier, vol. 66(1), pages 37-59, April.
    13. Kraaijenbrink, Jeroen & Spender, JC & Groen, Aard, 2009. "The resource-based view: A review and assessment of its critiques," MPRA Paper 21442, University Library of Munich, Germany.
    14. York, Jeffrey G. & Venkataraman, S., 2010. "The entrepreneur-environment nexus: Uncertainty, innovation, and allocation," Journal of Business Venturing, Elsevier, vol. 25(5), pages 449-463, September.
    15. Anthony Endres & Christine Woods, 2010. "Schumpeter’s ‘conduct model of the dynamic entrepreneur’: scope and distinctiveness," Journal of Evolutionary Economics, Springer, vol. 20(4), pages 583-607, August.
    16. Fischer, Eileen & Reuber, A. Rebecca, 2011. "Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior?," Journal of Business Venturing, Elsevier, vol. 26(1), pages 1-18, January.
    17. Harris, Jared D. & Sapienza, Harry J. & Bowie, Norman E., 2009. "Ethics and entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(5), pages 407-418, September.

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