The concept of 'effectuation' can be used by executives to harness their entrepreneurial spirit, an academic has claimed.
Saras Sarasvathy, Isadore Horween research associate professor at the University of Virginia's Dardeen Business School, explained on Harvard Business Review that effectuation is based around the idea that people co-create the future, rather than predict what is going to happen.
She described how anyone can come up with "doable venture ideas" simply by using who they are, what they know and who they collaborate with; ensuring that they never invest any more than they can afford to lose.
In her opinion, this belief in a person's ability to invent or discover something is key to economic progress, making it a trait that people in executive interim management positions may wish to harness while on assignments.
Ms Sarasvathy said: "The idea that anyone can be taught to be an entrepreneur, to effect things for themselves, might seem ridiculous. But consider this. Every large organisation that exists today began as a small, entrepreneurial company started by ordinary people."
While everyone may have the capacity to produce a creative solution to a commercial problem, often the regulations in the market they work in can have an impact on their success. The Confederation of British Industry this week spoke out against new data protection reforms for precisely this reason.
Matthew Fell, director of the organisation, suggested the updated Data Protection Directive would be "restrictive" and add huge costs to the process of innovation, reported Computing.co.uk.