New market creation through transformation

By S. Sarasvathy, Nicholas Dew. 2005

615 citations recorded by the source corpus.

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.

Subfields: Strategy and Management

View Paper: https://www.semanticscholar.org/paper/db46871817d352b808b7e0aac58a27ca19a19354

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In Strategy and Management

Citations in the corpus

Exploring the resource logic of student entrepreneurs (2012, background): “In this more emergent decision-model the focus is on the question of what can be done given possible means and imagined ends (Sarasvathy, 2001; Sarasvathy and Dew, 2005).”
Effectuation or causation: An fsQCA analysis of entrepreneurial passion, risk perception, and self-efficacy (2018, background): “In contrast, effectual entrepreneurs embrace the intrinsic ambiguity of the entrepreneurial context and follow a principle of affordable loss (Read & Sarasvathy, 2005).”
Social interaction via new social media: (How) can interactions on Twitter affect effectual thinking and behavior? (2011, background): “…interacts with other people to gain feedback and to co-create opportunities, which can lead to the gaining of commitment from new partners, the acquisition of new material resources, and the development of new goals on the part of the entrepreneur (Read et al., 2009b; Sarasvathy and Dew, 2005).”
The Coevolution of Institutional Entrepreneurship: A Tale of Two Theories (2010, positive): “…that markets constitute one of the most powerful forms of institutions that dominate modern societies, it is not surprising that entrepreneurship scholars of both sociological and economic persuasions are honing in on the creation of new markets (Santos & Eisenhardt, 2009; Sarasvathy & Dew, 2005).”
‘Expect the unexpected’: Implications of effectual logic on the internationalization process (2014, background): “Entrepreneurs may or may not recognize an opportunity, but they begin the venture based on who they are, what they know and whom they know (Sarasvathy & Dew, 2005).”
Networks and network resources in technological innovation systems: Towards a conceptual framework for system building (2012, background): “Findings from the entrepreneurship literaturemight be a promising starting point in this regard [33,70,85].”
Exploring environmental entrepreneurship: : Identity coupling, venture goals, and stakeholder incentives (2016, methodology): “Statements such as above offer a wide gambit of incentives so that a variety of stakeholders can self-select into the process and even interpret the goals to their liking (Fischer and Reuber, 2011; Sarasvathy and Dew, 2005b).”
Effectuation As Ineffectual? Applying the 3E Theory-Assessment Framework to a Proposed New Theory of Entrepreneurship (2015, background): “The mutual commitments of stakeholders create an initial network that can eventually transform extant reality into a new market (Sarasvathy & Dew, 2005).”
Digital Entrepreneurship: Toward a Digital Technology Perspective of Entrepreneurship (2017, background): “…the “effectuation” perspective (e.g., Sarasvathy, 2001) suggests an iterative process wherein the entrepreneur engages in continuous cognitive re-evaluation of the means available to them and their effects thereby gradually shaping the offering (Read, Song, & Smit, 2009; Sarasvathy & Dew, 2005).”
Career motives and entrepreneurial decision-making: examining preferences for causal and effectual logics in the early stage of new ventures (2011, methodology): “ Sarasvathy and Dew 2005 ) has suggested that the process may not be as ad-hoc as the original statement suggests.”
On the entrepreneurial genesis of new markets: effectual transformations versus causal search and selection (2011, positive): “In a recently published paper, Sarasvathy and Dew (2005) build on the view of endogenous growth offered by the likes of Schumpeter, Weitzman, evolutionary and “New Growth” (Romer 1994) scholars by considering the idea that entrepreneurs might have developed processes of turning an abundance of…”
Get It Together! Synergistic Effects of Causal and Effectual Decision-Making Logics on Venture Performance (2018, background): “In contrast, entrepreneurs who apply nonpredictive control (effectuation) make use of other principles, which were first documented by Sarasvathy (2001, 2008) and colleagues (e.g., Read & Sarasvathy, 2005; Sarasvathy & Dew, 2005; Sarasvathy, Dew, Read, & Wiltbank, 2008; Wiltbank et al., 2006).”
Creating the Future Together: Toward a Framework for Research Synthesis in Entrepreneurship (2014, background): “As such, a key notion in the narrative tradition is the notion of (entrepreneurial) action and sensemaking as genuinely creative acts (e.g., Berglund, 2007; Chiles, Bluedorn, & Gupta, 2007; Foss, Klein, Kor, & Mahoney, 2008; Sarasvathy & Dew, 2005).”