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Effectuation and foreign market entry of entrepreneurial firms
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Business Studies. Univ Otago, Sch Business, Entrepreneurship, Dunedin, New Zealand..
Univ Jyvaskyla, Sch Business & Econ, Jyvaskyla, Finland..
Univ Jyvaskyla, Sch Business & Econ, Entrepreneurship & Int Business, Jyvaskyla, Finland..
2015 (English)In: European Journal of Marketing, ISSN 0309-0566, E-ISSN 1758-7123, Vol. 49, no 9-10, 1436-1459 p.Article in journal (Refereed) PublishedText
Abstract [en]

Purpose - The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets. Design/methodology/approach - A nascent theory in entrepreneurship called effectuation is combined with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Zealand. Findings - It was found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process, potentially using different decision-making processes in them. They tend to interweave effectuation and causation logics as substitutes in their decision-making. Uncertainty during foreign market entry is not always a barrier because it can provide opportunities depending on the logic used. In addition, there is evidence that entrepreneurs who have existing relationships in foreign markets tend to use effectuation to select and enter foreign markets. Originality/value - This paper transposes effectuation from its original field of entrepreneurship research to the context of internationalizing entrepreneurial firms. Consequently, it contributes toward understanding the decision-making process for selecting and entering foreign markets.

Place, publisher, year, edition, pages
2015. Vol. 49, no 9-10, 1436-1459 p.
Keyword [en]
Entrepreneurship, Effectuation, Internationalization, Networks, Causation, Foreign market entry
National Category
Economics and Business
URN: urn:nbn:se:uu:diva-272427DOI: 10.1108/EJM-11-2013-0630ISI: 000366494400005OAI: oai:DiVA.org:uu-272427DiVA: diva2:894544
Available from: 2016-01-15 Created: 2016-01-13 Last updated: 2016-01-15Bibliographically approved

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