IT Enabled Frugal Effectuation

Abstract

To succeed, entrepreneurs operating in frugal contexts tend to adopt an effectual logic of action. Such entrepreneurs also increasingly rely on digital technologies to pursue opportunities.Yet, despite a flurry of scholarly attention to effectuation tactics and their outcomes, surprisingly little is known about how digital technologies support effectuation, and with what outcomes. This paper sketches a theoretical model of how IT affordances support effectuation in frugal contexts.The model extends entrepreneurship and information systems theories of frugal entrepreneurship by linking specific IT affordances to dimensions of effectuation. The paper also discusses how the model could be refined by empirical studies and extended across levels of analysis.