This is probably one of the best papers I have seen on the subject. Although I did not perform a study on my own, I have had the pleasure of interacting with a bunch of entrepreneurs. The arguments in this paper nail it.

The paper makes an insightful distinction between causal reasoning and effectual reasoning.

Causal rationality begins with a pre-determined goal and a given set of means. In IT for example, causal reasoning is we need to built this architecture to support business X – here is how we are going to do it (step by step). Causal reasoning, according to this paper, is also what we learn in school.

Effectual reasoning does not begin with specific goals. Opposed to causal reasoning, there are a given set of means that allows goals to emerge contingently over time from the varied imaginations and diverse aspirations of the founders and the people they interact with. Basically navigating in unchartered waters in the hopes of discovery. Key word here is ‘discovery.’

This may sound a bit crazy. But then, I will reference a quote (not from this paper) that to me re-enforces this view:

“All progress depends on the unreasonable man” - George Bernard Shaw

Lastly, this paper has incredible humor, as can be seen by this note:

The paper can be found here.