Abstracts
Abstract
The internationalization processes of innovative firms, employing distinct decision-making logics, differ from those of traditional companies in mature industries. Although recent studies have examined these approaches, our understanding of the decision-making logics specific to innovative firms throughout the internationalization process remains limited. Drawing on Sarasvathy’s (2001) causation and effectuation approach, we conducted a longitudinal study of the decision-making logics of five French innovative firms at different stages of their internationalization. Our results show that managers’ decision-making logics may shift multiple times throughout the internationalization process depending on the context and resources. This study contributes to the literature by elucidating the evolution of decision-making logic over time, particularly when firms are selecting their target market and subsequently entering that market.
Keywords:
- decision-making logic,
- effectuation,
- causation,
- internationalization,
- French innovative firms,
- longitudinal study
Résumé
Les processus d’internationalisation des entreprises innovantes, fondés sur des logiques de décision spécifiques, diffèrent de ceux des entreprises traditionnelles des secteurs matures. Malgré les travaux récents, la compréhension de ces logiques tout au long du processus reste limitée. En nous appuyant sur l’approche de causalité et d’effectuation de Sarasvathy (2001), nous avons mené une étude longitudinale auprès de cinq entreprises innovantes françaises à différents stades de leur internationalisation. Les résultats montrent que les logiques de décision des dirigeants évoluent au fil du processus, selon le contexte et les ressources disponibles. Cette recherche éclaire l’évolution temporelle des logiques de décision, notamment dans la sélection des marchés cibles et des modes d’entrée.
Mots-clés :
- logique de décision,
- effectuation,
- causalité,
- internationalisation,
- entreprises innovantes françaises,
- étude longitudinale
Resumen
Los procesos de internacionalización de las empresas innovadoras, basados en lógicas de decisión específicas, difieren de los de las empresas tradicionales de sectores maduros. Pese a los estudios recientes, la comprensión de estas lógicas a lo largo del proceso sigue siendo limitada. Basándonos en el enfoque de las lógicas causales y efectivos de Sarasvathy (2001), realizamos un estudio longitudinal de cinco empresas innovadoras francesas en distintas etapas de su internacionalización. Los resultados muestran que las lógicas de decisión de los directivos evolucionan según el contexto y los recursos disponibles. Este estudio aporta claridad sobre la evolución temporal de dichas lógicas, especialmente en la selección de mercados objetivo y los modos de entrada.
Palabras clave:
- lógica de decisión,
- efectividad,
- causales,
- internacionalización,
- empresas innovadoras francesas,
- estudio longitudinal
Appendices
Bibliography
- Arend, R. J., Sarooghi, H., & Burkemper, A. (2015). Effectuation as ineffectual? Applying the 3E theory-assessment framework to a proposed new theory of entrepreneurship. Academy of management Review, 40(4), 630-651. https://doi.org/10.5465/amr.2014.0455
- Berends, H., Jelinek, M., Reymen, I., & Stultiëns, R., (2014). Product innovation processes in small firms: Combining entrepreneurial effectuation and managerial causation. Journal of Product Innovation Management, 31(3), 616–635. https://doi.org/10.1111/jpim.12117
- Chandler, G. N., DeTienne, D. R., McKelvie, A., and Mumford, T. V. (2011). Causation and effectuation processes: A validation study. Journal of Business Venturing, 26(3), 375- 390. https://doi.org/10.1016/j.jbusvent.2009.10.006
- Cherbib, J. (2024). Exploring the interplay between entrepreneurial orientation, causation and effectuation under unexpected covid-19 uncertainty: Insights from large French banks. Technological Forecasting and Social Change, 200, 123090. https://doi.org/10.1016/j.techfore.2024.123090
- Chetty, S., Ojala, A. and Leppäaho, T. (2015). Effectuation and foreign market entry of entrepreneurial firms. European Journal of Marketing, 49(9-10), 1436-1459. https://doi.org/10.1108/EJM-11-2013-0630
- Child, J., & Hsieh, L. H. (2014). Decision mode, information and network attachment in the internationalization of SMEs: A configurational and contingency analysis. Journal of world Business, 49(4), 598-610. https://doi.org/10.1016/j.jwb.2013.12.012
- Coudounaris, D. N., & Arvidsson, H. G. (2022). How effectuation, causation and bricolage influence the international performance of firms via internationalisation strategy: a literature review. Review of International Business and Strategy, 32(2), 149-203. https://doi.org/10.1108/RIBS0820200092
- Crick, D. and Crick, J. (2014). The internationalization strategies of rapidly internationalizing high-tech UK SMEs: Planned and unplanned activities. European Business Review, 26(5), 421-448. https://doi.org/10.1108/EBR1220120073
- Davila, T., Epstein, M., & Shelton, R. (2012). Making innovation work: How to manage it, measure it, and profit from it. FT press.
- Dew, N., Sarasvathy, S., Read, S. and Wiltbank, R. (2009). Affordable loss: behavioral economic aspects of the plunge decision. Strategic Entrepreneurship Journal, 3(2), 105-126. https://doi.org/10.1002/sej.66
- Dew, N., Read, S., Sarasvathy, S. D., and Wiltbank, R. (2011). On the entrepreneurial genesis of new markets: effectual transformations versus causal search and selection. Journal of Evolutionary Economics, 21(2), 231-253. https://doi.org/10.1007/s0019101001851
- Dominguez, N., & Mayrhofer, U. (2017). Internationalization stages of traditional SMEs: Increasing, decreasing and re-increasing commitment to foreign markets. International Business Review, 26(6), 1051-1063. https://doi.org/10.1016/j.ibusrev.2017.03.010
- Du, J., Zhu, S., & Li, W. H. (2023). Innovation through internationalization: A systematic review and research agenda. Asia Pacific Journal of Management, 40(3), 1217-1251. https://doi.org/10.1007/s1049002209814z
- Eisenhardt, K. M. (1989). Building theories from case study research. Academy of management review, 14(4), 532-550. https://doi.org/10.5465/amr.1989.4308385
- Ferreira Ribeiro, F. C., Oliveira De Miranda Jr, M., Borini, F. M., & Bernardes, R. (2014). Accelerated internationalization in emerging markets: empirical evidence from Brazilian technology-based firms. Journal of technology management & innovation, 9(1), 1-12. https://doi.org/10.4067/S071827242014000100001
- Freeman, S., Vissak, T., Nummela, N., & Trudgen, R. (2023). Do technology-focused fast internationalizers’ performance measures change as they mature? International Business Review, 32(5), 102168. https://doi.org/10.1016/j.ibusrev.2023.102168
- Freixanet, J., & Federo, R. (2022). When born globals grow up: a review and agenda for research on the performance of maturing early internationalizers. Management International Review, 62(6), 817-857. https://doi.org/10.1007/s1157502200485y
- Gabrielsson, P., & Gabrielsson, M. (2013). A dynamic model of growth phases and survival in international business-to-business new ventures: The moderating effect of decision-making logic. Industrial Marketing Management, 42(8), 1357-1373. https://doi.org/10.1016/j.indmarman.2013.07.011
- Gabrielsson, M., Raatikainen, M., & Julkunen, S. (2022). Accelerated Internationalization Among Inexperienced Digital Entrepreneurs: Toward a Holistic Entrepreneurial Decision-Making Model. Management International Review, 1-32. https://doi.org/10.1007/s1157502200469y
- Galkina, T., & Chetty, S. (2015). Effectuation and networking of internationalizing SMEs. Management International Review, 55(5), 647-676. https://doi.org/10.1007/s115750150251x
- Galkina, T., Atkova, I., & Yang, M. (2022). From tensions to synergy: Causation and effectuation in the process of venture creation. Strategic Entrepreneurship Journal, 16(3), 573-601. https://doi.org/10.1002/sej.1413
- Garud, R., Kumaraswamy, A., & Karnøe, P. (2010). Path dependence or path creation? Journal of management studies, 47(4), 760-774. https://doi.org/10.1111/j.1467-6486.2009.00914.x
- Harms, R., & Schiele, H. (2012). Antecedents and consequences of effectuation and causation in the international new venture creation process. Journal of international entrepreneurship, 10(2), 95-116. https://doi.org/10.1007/s1084301200892
- Hsieh, L., Child, J., Narooz, R., Elbanna, S., Karmowska, J., Marinova, S., Puthusserry, P., Tsai, T. & Zhang, Y. (2019). A multidimensional perspective of SME internationalization speed: the influence of entrepreneurial characteristics. International Business Review, 28(2), pp. 268-283. https://doi.org/10.1016/j.ibusrev.2018.09.004
- Johanson, M., & Oliveira, L. (2024). The Performance of Decision-Making Strategies in SME Internationalization: The Role of Host Market’s Institutional Development. Management International Review, 64(2), 303-335. https://doi.org/10.1007/s11575‑024‑00534‑8
- Johanson, J., & Wiedersheim-Paul, F. (1975). The internationalization of the firm: Four Swedish cases. Journal of management studies, 12(3), 305-322. https://doi.org/10.1111/j.1467-6486.1975.tb00514.x
- Johanson, J., & Vahlne, J.-E. (1977). The internationalization process of the firm. Journal of International Business Studies, 8: 23–32. https://doi.org/10.1057/palgrave.jibs.8490676
- Johanson, J., & Vahlne, J. E. (2009). The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership, Journal of International Business Studies, 40(9), 1411-1431. https://doi.org/10.1057/jibs.2009.24
- Johanson, J., & Vahlne, J. E. (2011). Markets as networks: implications for strategy-making. Journal of the Academy of Marketing Science, 39(4), 484-491. https://doi.org/10.1007/s11747-010-0235-0
- Kalinic, I., & Forza, C. (2012). Rapid internationalization of traditional SMEs: Between gradualist models and born globals. International Business Review, 21(4), 694-707. https://doi.org/10.1016/j.ibusrev.2011.08.002
- Karami, M., Wooliscroft, B., & McNeill, L. (2020). Effectuation and internationalisation: A review and agenda for future research. Small Business Economics, 55(3), 777-811. https://doi.org/10.1007/s11187019001834
- Knight, G. A., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of international business studies, 35, 124-141. https://doi.org/10.1057/palgrave.jibs.8400071
- Kriz, A., Rumyantseva, M., & Welch, C. (2023). When does the internationalization process begin? Problematizing temporal boundaries in international business. Journal of World Business, 58(3), 101423. https://doi.org/10.1016/j.jwb.2022.101423
- Kuivalainen, O., Sundqvist, S., Saarenketo, S., & McNaughton, R. (2012). Internationalization patterns of small and medium-sized enterprises. International Marketing Review, 29(5), 448-465. https://doi.org/10.1108/02651331211260331
- Li, L., & Qian, G. (2008). Partnership or self-reliance entry modes: Large and small technology-based enterprises’ strategies in overseas markets. Journal of International Entrepreneurship, 6, 188-208. https://doi.org/10.1007/s1084300800293
- Lombardi, R., Tiscini, R., Trequattrini, R., & Martiniello, L. (2021). Strategic entrepreneurship: Personal values and characteristics influencing SMEs’ decision-making and outcomes. The Gemar Balloons case. Management Decision, 59(5), 1069-1084. https://doi.org/10.1108/MD1020191416
- Miles, M.B., & Huberman, A.M. (1994). Qualitative Data Analysis: An Expanded Sourcebook, Sage Publications, Thousand Oaks.
- Miles, M. B. & Huberman, A. M. (2003). Qualitative Data Analysis: A Methods Sourcebook. Sage Publications.
- OECD/Eurostat (2005), Oslo Manual, Guidelines for Collecting and Interpreting Innovation Data, Paris: OECD.
- Oviatt, B. M., & McDougall, P. P. (2014). Toward a theory of international new ventures. Journal of International Business Studies, 25, 45-64. https://doi.org/10.1057/palgrave.jibs.8490193
- Piva, E., Rossi-Lamastra, C., & De Massis, A. (2013). Family firms and internationalization: An exploratory study on high-tech entrepreneurial ventures. Journal of International Entrepreneurship, 11, 108-129. https://doi.org/10.1007/s108430120100y
- Read, S., Song, M., & Smit, W. (2009). A meta-analytic review of effectuation and venture performance. Journal of Business Venturing, 24(6), 573–587. https://doi.org/10.1016/j.jbusvent.2008.02.005
- Read, S. & Sarasvathy, S. D. (2005). Knowing what to do and doing what you know: effectuation as a form of entrepreneurial expertise. The Journal of Private Equity, 9(1), 45-62. https://doi.org/10.3905/jpe.2005.605370
- Read, S., Sarasvathy, S. D., Dew, N. & Wiltbank, R. (2016). Response to Arend, Sarooghi, and Burkemper (2015): Co-creating effectual entrepreneurship research. Academy of Management Review, 41(3), 528-556. https://doi.org/10.5465/amr.2015.0180
- RuizJiménez, J. M., RuizArroyo, M., & del Mar FuentesFuentes, M. (2021). The impact of effectuation, causation, and resources on new venture performance: Novice versus expert entrepreneurs. Small Business Economics, 57(4), 17611781. https://doi.org/10.1007/s11187-020-00371-7
- Sarasvathy, S. D. (2001). Causation and effectuation: Toward a theoretical shift from economic inevitability to entrepreneurial contingency. Academy of Management Review, 26(2), 242-263. https://doi.org/10.5465/amr.2001.4378020
- Sarasvathy, S., & Dew, N. (2008). Effectuation and over–trust: Debating Goel and Karri. Entrepreneurship theory and practice, 32(4), 727-737. https://doi.org/10.1111/j.1540-6520.2008.00250.x
- Sarasvathy, S., Kumar, K., York, J. G., & Bhagavatula, S. (2014). An effectual approach to international entrepreneurship: Overlaps, challenges, and provocative possibilities. Entrepreneurship Theory and Practice, 38(1), 71-93. https://doi.org/10.1111/etap.12088
- Thai, M. T. T., & Chong, L. C. (2013). Dynamic experimental internationalization: Strategy of SMEs from a transition economy. Journal of International Entrepreneurship, 11, 370-399. https://doi.org/10.1007/s1084301301104
- Tolstoy, D., Nordman, E. R., Hånell, S. M., & Özbek, N. (2021). The development of international e-commerce in retail SMEs: An effectuation perspective. Journal of World Business, 56(3), 101165. https://doi.org/10.1016/j.jwb.2020.101165
- Vahlne, J. E., & Johanson, J. (2017). From internationalization to evolution: The Uppsala model at 40 years. Journal of International Business Studies, 48, 1087-1102. https://doi.org/10.1057/s4126701701077
- Welch, C., Paavilainen-Mäntymäki, E., Piekkari, R., & Plakoyiannaki, E. (2022). Reconciling theory and context: How the case study can set a new agenda for international business research. Journal of International Business Studies, 53(1), 4-26. https://doi.org/10.1057/s41267021004845
- Yin, R. K. (1994). Case Study Research: Design and Methods, Sage Publication, London.
- Yin, R. K. (2003). Designing case studies. Qualitative research methods, 5(14), 359-386.