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 whether
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 a 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 behavior, 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 that have used effectuation theory as a basis for
understanding the early development of a born global firm.
Emerald Group Publishing Limited, 2011. Vol. 18, no 3, p. 627-643