Bringing People to the Table in New Ventures: An Effectual Approach

Abstract

When building new ventures, entrepreneurs confront the three problems of Knightian uncertainty, goal ambiguity, and isotropy. The literature on effectuation offers a framework for action, interaction, and reaction within the prediction control space that can help entrepreneurs tackle the above three problems. In this article, we offer a framework consisting of four approaches to negotiation that populate the prediction-control space, namely, Pitch, Help, Deal, and (Effectual) Ask. While we emphasize the effectual quadrant, we examine all four from a practical perspective informed by theory, while forging important connections with established works in negotiation research. Along the way, we offer illustrative examples as well as ideas for future research at the nexus of entrepreneurship and negotiation.