Mature Firm Innovation: Can Effectual Logic Be Emulated?
Issued Date
2022-01-01
Resource Type
ISSN
2325162X
eISSN
23251638
Scopus ID
2-s2.0-85136595019
Journal Title
International Journal of Design Management and Professional Practice
Volume
16
Issue
2
Start Page
23
End Page
33
Rights Holder(s)
SCOPUS
Bibliographic Citation
International Journal of Design Management and Professional Practice Vol.16 No.2 (2022) , 23-33
Suggested Citation
Miller L.N., Khamung R., Sakulsinlapakorn K., Prasertsakul D., Miller H.L. Mature Firm Innovation: Can Effectual Logic Be Emulated?. International Journal of Design Management and Professional Practice Vol.16 No.2 (2022) , 23-33. 33. doi:10.18848/2325-162X/CGP/v16i02/23-33 Retrieved from: https://repository.li.mahidol.ac.th/handle/20.500.14594/87487
Title
Mature Firm Innovation: Can Effectual Logic Be Emulated?
Author's Affiliation
Other Contributor(s)
Abstract
Effectuation is a theory of entrepreneurial expertise and decision-making. Effectual logic (EL) has been identified as an organizational creation process or strategy that is thought to be used by expert entrepreneurs when creating their new organizations. Sarasvathy spells out four principles that form the core of the theory of effectuation: (1) Affordable loss rather than expected returns. (2) Strategic alliances rather than competitive analyses. (3) Exploitation of contingencies rather than exploitation of preexisting knowledge. (4) Controlling an unpredictable future rather than predicting an uncertain one. The authors propose that these principles can be emulated during the product development process by mature firms to create transformative product innovations. Thus, mature firms that employ a strong resource orientation and utilize cross-functional teams on a portfolio of R&D projects while becoming proficient in prototyping done early, rapidly, and repetitiously can emulate EL and more probably be able to create transformative product innovations. Moreover, rather than working individually, the emulating techniques act synergistically to emulate the EL process used by entrepreneurs and to thereby increase the likelihood of successful transformative product innovation.