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Decision-making in born globals - effectuation or causation?
Halmstad University, School of Business and Engineering (SET), Centre for Innovation, Entrepreneurship and Learning Research (CIEL), Centre for Technology, Innovation and Marketing Management (CTIM2).ORCID iD: 0000-0002-8194-2053
2011 (English)Conference paper, Published paper (Refereed)
Abstract [en]

Purpose

The purpose of this study is to enhance the understanding of a born global firm’s early internationalization process and the entrepreneur’s decisions regarding internationalization by using effectuation theory.

Design/methodology/approach

An explorative case study is used to explore if effectuation theory is a fruitful alternative perspective compared with the dominant paradigm (causation), which is primarily used in earlier studies on born globals.

Findings

The study shows how a born global company could enter many markets in short time, by co-operating with local network partners. The founders’ prior knowledge and networks were important to understand the rapid international expansion. Effectuation theory focuses on the entrepreneurs’ ability to create opportunities together with network partners and is a useful tool to understand the development in the born global firm.

Research limitations/implications

The study shows that effectuation theory holds promise for developing the international entrepreneurship area. Future research is recommended to focus not only on the entrepreneur’s competencies but also on the entrepreneur’s behaviour, including during the time before they started the firm.

Practical implications

Decision-makers in the early development of born global firms are recommended to use his/her own and his/her company’s resources and network. Also advantage should be taken of opportunities when they are recognized or created, instead of focusing on traditional planning activities.

Originality/value

There are few studies which have used effectuation theory as a basis for understanding the early development of a born global firm.

Place, publisher, year, edition, pages
2011.
Keyword [en]
International Entrepreneurship, Born Globals, Effectuation, Causation, Internationalization, Case study
National Category
Business Administration
Identifiers
URN: urn:nbn:se:hh:diva-15154OAI: oai:DiVA.org:hh-15154DiVA: diva2:419424
Conference
AIB-UKI 2011 Academy of International Business United Kingdom & Ireland Chapter, Edinburgh, April 14-16.
Available from: 2011-05-26 Created: 2011-05-26 Last updated: 2013-11-19Bibliographically approved

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf