Title: Narratives of Entrepreneurial Ecosystem in Cambodia and Its Impact on Entrepreneur’s Decision-Making Logic

Authors: Mostafa Rezayi and Pisey Vuthy

Level: Master Thesis, 30 hp

Background: Entrepreneurial activities are impacted by various elements in an entrepreneurship ecosystem (EE). The interplay of such factors produces narratives that display the condition of EEs. Moreover, ecosystem narratives (EN) have significant impacts on the advancement of EEs and can determine entrepreneurs' decisions in establishing and expanding new ventures. Entrepreneurs in environments with fast and continual changes use either effectual or casual logic to make decisions based on various factors such as uncertainty, culture, and resource availability. The impact of EN on the decision-making logic of entrepreneurs has been investigated in supportive and developed EEs, such research, however, has not been undertaken in less developed EEs. Considering that EEs operate differently due to the differences in their elements, this study aims to identify ENs and investigate their impacts on entrepreneurs’ decision-making logic in Cambodian EE, which is less developed than the regional and global competitors.

Research questions: What are the narratives of the entrepreneurial ecosystem in Cambodia? How do narratives of the entrepreneurial ecosystem hinder or encourage effectuation and causation in Cambodian entrepreneurs?

Purpose: This study aims to (1) identify the narratives of the entrepreneurial ecosystem in Cambodia and (2) explain how the narratives affect entrepreneurs’ decision-making logic, whether it leads to effectuation or causation.Theoretical framework: Articles used for this thesis were meticulously chosen, focusing on reliable sources and quality content that cover the theoretical background of EE, EN, and effectuation and causation. This chapter included theories and findings on EEs and their main elements, which formed the basis of the interview guide and themes used to analyze the collected data. Further, information about the causes and effects of narratives in EEs was provided. Lastly, the concepts of causation and effectuation were discussed following the elements in the EE.

Method: This study adopted the interpretive approach to creating new, richer understandings and interpretations of issues related to the impacts of narratives on the decision-making logic of entrepreneurs. The Cambodian EE is studied as a case to obtain detailed data and answer the research questions. A qualitative method was implemented to conduct ENs, and adequate data were collected through semi-structured interviews with 12 key actors in the EE. The gathered data were analyzed through a thematic narrative analysis method. Lastly, this paper followed an abductive reasoning approach.

Findings: The common narratives within the Cambodian EE were identified through 12 semi-structured interviews with Cambodian entrepreneurs, venture capitalists, angel investors, and business incubators. The identified narratives illuminated that Cambodian entrepreneurs rely more on the effectual logic than the casual one to establish and expand their firms. This is due to narratives about, for instance, poor developed physical infrastructure, lack of essential resources, low social and moral support, and underdeveloped training and education system.

Originality/Value: This is the first research investigating the impact of common narratives in a nascent and underdeveloped EE on entrepreneurs’ decision-making logic.

Keywords: Entrepreneurial ecosystem, Ecosystem narratives, Decision-making logic, Effectuation, Causation.