L3

Question 1

Sumarize Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency (Sarasvathy)

Answer 1

Effectuation focus on starting with the means you have instead of the goal you have
Most optimal when the context is very unclear and uncertain

Question 2

principles of effectuation

Answer 2

1. What do I have?
   
   2. Focus on downside risk and limiting these
   3. Strategic alliances rather than competitive analyses
   4. Exploit surprise factors, see them as opportunities instead of avoiding
2. Focus on controllable activities instead of trying to predict further

Question 3

Critique effactuation

Answer 3

Real novelty/radical ideas might be where you either know goals or means
Competition and entry barriers is completely excluded
There are no guidelines on when you should stop
Finding innovation seems to be because of slumps

Question 4

Sumarize “Simultaneous experimentation as a learning strategy: business model development under uncertainty” (Andries, Debackere, Looy)

Answer 4

Ventures that operates under uncertainty either have a focused commitment or a simultaneous experimentation
Second options grow slower in beginning but is better for long-term survival

Question 5

Why does ventures have a focused commitment? What is the result and consequences?

Answer 5

Clarity of value proposition increase mobilizing power
Reduces uncertainty and increase growth in beginning because of learning from the market
Lot of expenditures
When assumptions are showed to be wrong it is difficult to change the business model
Investors doesn’t want to bring more capital

Question 6

Why does ventures have a simultaneous experimentation? What is result?

Answer 6

Because of uncertainty different paths are taken at same time
Portfolio with overlapping business models that give spill-over effects
Learning about market and gradual narrowing down range of options
Generate potential to support longer term development of other activities