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Effectuation and causation: Two decision-making logics of INVs at the early stage of growth and internationalisation

Author

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  • Ciszewska-Mlinaric, Mariola
  • Obloj, Krzysztof
  • Wasowska, Aleksandra

Abstract

The purpose of this study is to explore what decision-making logic (effectual or causal) is dominant in the new venture internationalisation process and what influences its changes over time. To this end, we present a case study of a Polish international new venture (INV) operating in the audiobook industry. The study’s findings reveal that decision-making logic at the early stage of company growth and internationalisation cannot be assigned to one type of logic, but rather may shift from effectuation to causation and vice versa. Moreover, we argue that INVs may apply two logics simultaneously, depending on the characteristics of the problem space.

Suggested Citation

  • Ciszewska-Mlinaric, Mariola & Obloj, Krzysztof & Wasowska, Aleksandra, 2016. "Effectuation and causation: Two decision-making logics of INVs at the early stage of growth and internationalisation," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 21(3), pages 275-297.
    • Handle: RePEc:nms:joeems:jeems-2016-ciszewska-mlinaric
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    File URL: https://www.nomos-elibrary.de/10.5771/0949-6181-2016-3-275
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    Citations

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    Cited by:

    1. Elżbieta Duliniec, 2018. "Mechanizmy decyzyjne w przedsiębiorstwach wcześnie umiędzynarodowionych," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 2, pages 99-128.
    2. Vuorio, Anna & Torkkeli, Lasse, 2023. "Dynamic managerial capability portfolios in early internationalising firms," International Business Review, Elsevier, vol. 32(1).
    3. Ipsmiller, Edith & Dikova, Desislava, 2021. "Internationalization from Central and Eastern Europe: A systematic literature review," Journal of International Management, Elsevier, vol. 27(4).
    4. Dafnis N. Coudounaris & Henrik G.S. Arvidsson, 2021. "Relationships between the Big-5 Model and Effectuation versus Causation Logics of Entrepreneurs in New Ventures: The Estonian IT Sector," Administrative Sciences, MDPI, vol. 11(4), pages 1-25, September.
    5. Masoud Karami & Ben Wooliscroft & Lisa McNeill, 2020. "Effectuation and internationalisation: a review and agenda for future research," Small Business Economics, Springer, vol. 55(3), pages 777-811, October.
    6. Alexander McKelvie & Gaylen N. Chandler & Dawn R. DeTienne & Anette Johansson, 2020. "The measurement of effectuation: highlighting research tensions and opportunities for the future," Small Business Economics, Springer, vol. 54(3), pages 689-720, March.
    7. Hamid Etemad, 2022. "Perspective on early internationalizing firms: Three decades of international entrepreneurship developments," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 195-217, June.
    8. Angela Rocha & Vítor Corado Simões & Renato Cotta Mello & Jorge Carneiro, 2017. "From global start-ups to the borderless firm: Why and how to build a worldwide value system," Journal of International Entrepreneurship, Springer, vol. 15(2), pages 121-144, June.
    9. Scazziota, Vanessa & Serra, Fernando & Sarkar, Soumodip & Guerrazzi, Luiz, 2023. "The antecedents of entrepreneurial action: A meta-synthesis on effectuation and bricolage," Journal of Business Research, Elsevier, vol. 155(PA).
    10. Kankan Wen & Noha Alessa & Karifala Marah & Kwame Kyeremeh & Emmanuel Sampson Ansah & Vincent Tawiah, 2023. "The Impact of Corporate Governance and International Orientation on Firm Performance in SMEs: Evidence from a Developing Country," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    11. Vinciane Servantie & Martine Hlady-Rispal, 2022. "Born globals’ decision-making logics during their entrepreneurial process," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 255-281, June.
    12. Maryia Akulava & Maribel Guerrero, 2023. "Entrepreneurial gendered ambidexterity in Belarusian SMEs," The Journal of Technology Transfer, Springer, vol. 48(6), pages 1919-1944, December.
    13. Adrian Hauser & Fabian Eggers & Stefan Güldenberg, 2020. "Strategic decision-making in SMEs: effectuation, causation, and the absence of strategy," Small Business Economics, Springer, vol. 54(3), pages 775-790, March.

    More about this item

    Keywords

    international new ventures; internationalisation; decision-making; effectuation; causation; international entrepreneurship;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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