Recent Literature Review on Effectuation

The purpose of this study is to summarize the state of research in the theory of effectuation and to examine its strengths and weaknesses. In total 78 peer review articles are used in this study based on the effectuation which is a decision-making logic. Despite the fact the theory of effectuation was formulated in 2001, still to a large extent, it has not moved away from the realm of small entrepreneurial firms. The development of the effectuation logic has been accelerated in recent years, but still, the bulk of the research focuses on small entrepreneurial firms rather than towards the application of the theory on larger non-entrepreneurial firms. Furthermore, the effectuation theory would benefit from its evolution into the realm of psychology and sociology. The exponential growth of studies on effectuation during recent years i.e. 2017-2019 shows that researchers respond to the calls by leading authors that the effectuation theory is a field with a great potential for further theoretical developments. Conclusion, implications, limitations and future research avenues are discussed