Effectuation
A set of decision-making principles where entrepreneurs determine goals according to the resources in their possession, contrasted with 'causation', where entrepreneurs will determine goals to achieve and look for the resources to do so.
Origin
Saras D. Sarasvathy, a UVA Darden professor, discovered effectuation in the late 1990s through in-depth studies of expert entrepreneurs. She published foundational concepts in her 2001 paper "Causation and Effectuation: Towards a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency" in the Academy of Management Review. Her research, conducted under Nobel Laureate Herbert Simon, built on Simon's "bounded rationality" and "naturalistic decision-making." The paper became one of the most cited entrepreneurship articles of all time.