Slides of an interactive lecture in effectuation; theory and practice. Presented in the course Entrepreneurial Behavior @ SAMK university, pori, Finland for students in Toerism Management.

1. Entrepreneurial Behavior
(theory and interactive practice on effectuation)
Pori, 7 – 8 April 2014, Finland
Ing. Matthijs H.M. Hammer M.Sc.
Senior lecturer Entrepreneurship
School of Business, Building & Technology
PhD Researcher
Faculty of Product Innovation Management

2. • Short general introduction
• Theory:
• What is Entrepreneurship?
• How to behave like them?
• How to learn this?
• Practice:
• Casus: You!
Menu

3. About Saxion Universities
Enschede
ApeldoornDeventer

4. Three locations in the
eastern part of the country:
• Enschede
• Deventer
• Apeldoorn
Bridge position between the
Netherlands and Germany

5. Saxion University of Applied
Sciences
History as a Textile region

6. Characteristics of Saxion:
• Comprehensive university, predominantly
undergraduate level
• Focus on profession-oriented education through
teaching & undergraduate research
• Professional Masters’ programmes in key fields
• Regional focus for all programmes, national profile
in key fields
• Quality education under public scrutiny and
accreditation
Public funding, History dates back to 1875
23,125 students, 2,232 faculty and staff
12 Schools, 6 research centres

7. Schools and academic programs
• School of Business Building &
Technology
• School of Governance & Law
• School of Health
• School of Applied Psychology
and Human Resources
Management
• School of Social Work
• School of Education
• School of Creativity & Technology
• School of Finance & Accounting
• Hospitality Business School
• School of Life Science, Engineering &
Design
• School of Marketing & International
Management
• School of Environmental Planning &
Building
12 Schools:
•125 Bachelor / Master programmes in Dutch.
•27 Bachelor / Master international programmes in English.
•Various Bachelor / Master programmes in German
•Non-degree programmes

8. Small Business & Retail Management
• For the last 12 years
continually chosen as the
best Entrepreneurship
program in the country.
(Source: Studiegids Hoger Onderwijs Ministry
of Education the Netherlands, 2011)
• Voted in October 2009 as
the best performing study
program in the entire field
of commerce/economy in
The Netherlands (8.3 out of
10) (Source: Elsevier, october 2009)

9. Winner of Dutch
Wijnand Wijnen
education award for
most innovative
university program
concept.
Small Business & Retail Management

10. Winner of several
innovation awards for
student companies
Small Business & Retail Management

11. A kind question for you
Do you want to co-operate in applied research on
Entrepreneurship?
Please fill-out the form provided.
First part is about your thoughts on entrepreneurship
Second part for statistical processing.
Thank you.

12. Task 1
Individual task,
please do NOT co-operate!
Take a blank piece of paper
Take a pen
Draw an entrepreneur

13. results
>99% human being
Where from: >80% Man
Where from: >80% Suite
Where from: >80% Tie
Where from: >80% Smiling / success

14. Task 2
Please do co-operate now
Make small groups
Draw an entrepreneur

15. Results
3 levels:
• Items above personal level (common wealth /
added value).
• Items on personal level (happiness / lucky /
good life)
• Items below personal level (money/ office /
factory)

16. What is the item below?

17. Prototyping
+ +

18. Prototyping

19. What is an entrepreneur?

20. Prototyping
• Object or pattern recognition (Matlin, 2002)
• Combination of attributes associated with an object or
pattern (Solso, 1999)
Question?
• What is a prototype of an business opportunity?

21. Entrepreneurial process
VALUE
CREATION
Opportunity
recognition
Opportunity
preparation
Opportunity
exploitation
(Shane & Venkataraman, 2000)

22. Example
See possibilities Tackle opportunities
Know where to find it. Successful application

23. VALUE
CREATION
Opportunity
recognition
Opportunity
preparation
Opportunity
exploitation
CTO/COO
Culture Capital
CFO
Economic Capital
CEO
Strategic Capital
CMO
Social Capital
Relates to
knowledge, technology
organization, culture,
Relates to vision, mission
Influence, power
Relates to finance,
cash flow, costs
Relates to networks on
multiple aggregation
Levels in markets

24. But remember…..
Vision
without
Action
Action
without
Vision
Daydream Nightmare

25. The Competent Egg
Knowledge
Application
Behaviour
Talent
Source: N. Vloon, 2002
Structure
Context

26. What suites You?
• What do You like?
• What distinguishes You?
• What is appreciated?
Problem:
You don´t know for yourself.

27. Different ways of development
Falcon
Source: N. Vloon, 2002Goose

28. Summery
1. Determine what your motivation is; what make you
have fun.
2. Determine your relevant talents.
3. Determine what is your goal.
4. Create training activities in another professional
context.
5. Do it! (with motivation and drive)

29. Step up to Saxion.
Effectuation
(decision making heuristics learned by expert
entrepreneurs in uncertain, disruptive situations)
Matthijs Hammer, senior lecturer Entrepreneurship
Source: Stuart Read, Professor of Marketing
www.effectuation.org

30. Step up to Saxion.
Where to Start
• Causal principles (blue) what is taught
in business school
• Effectual principles are always in red

31. Step up to Saxion.
• Means. The basis for decisions
and new opportunities:
– Who I am
– What I know
– Whom I know
Where to Start
• Goals. Given (based on predictions)

32. Step up to Saxion.
• Affordable Loss.
Calculate downside potential and risk
no more than you can afford to lose.
Risk, Return and Resources
• Expected Return.
Calculate upside potential
and pursue the (risk
adjusted) best opportunity.

33. Step up to Saxion.
Partnership. Build your “future” together with
customers, suppliers and even prospective
competitors.
Attitude Toward Others
Competition. Set up
transactional
relationships with customers
and
suppliers.

34. Step up to Saxion.
34
Surprise
• Leverage Surprises.
Surprises can present new opportunities.
• Avoid Surprises.

35. Step up to Saxion.
Underlying Logic & What to
Do
To the extent we can predict the
future, we can control it.
 PLAN
To the extent we can control the
future, we don’t need to predict it.
 CO-CREATE

36. Step up to Saxion.
Effectuation
(decision making heuristics learned by expert
entrepreneurs in uncertain, disruptive situations)

37. Step up to Saxion.

38. Step up to Saxion.

39. Step up to Saxion.

40. Step up to Saxion.
Task
1. Make small groups.
2. Respond to the request:
From the city of Pori you are asked to
develop a brand new / innovative and low
cost-risk toerism attraction, museum, park
or concept.
3. Prepare a pitch of 1 minute.

41. Thank You
for your
Attention