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As potential business leaders, you are trained to think rationally and perhaps
admonished if you do not. This admonishment might be appropriate given the nature
of the task, but it appears that there is an alternate way of thinking that entrepreneurs
sometimes use, especially when thinking about opportunities. Professor Saras
Sarasvathy (from Darden, University of Virginia) has found that entrepreneurs do not
always think through a problem in a way that starts with a desired outcome and
focuses on the means to generate that outcome. Such a process is referred to as a causal
process. But, entrepreneurs sometimes use an effectuation process. Are there
particular problems or tasks in which thinking causally is likely to be superior to
effectuation? When might effectuation be superior to causal thinking? Explain with
practical examples.