Heuristic decision-making in firm internationalization: The influence of context-specific experience

Aleksi Niittymies

International Business Review, 2020, vol. 29, issue 6

Abstract: It is widely understood that the internationalization decisions made by companies are complex and constrained by uncertainty. While prior research has shown that heuristics can facilitate decision-making in complex and uncertain environments, the role of heuristic decision-making in internationalization decisions has not been studied in depth. In order to remedy this lacuna, the article uses a qualitative and inductive approach to track the development of heuristic decision-making processes in two Finnish SMEs as they conduct their first moves towards internationalization, explicating the influence of context-specific experience on developments. The emergent theoretical model indicates that while heuristic decision-making has a positive impact on internationalization strategy development, managers are unable to harness this at the beginning of their first internationalization. Indeed, the positive impact appears only after a certain level of context-specific experience is accumulated and when the stimulus of an unexpected event triggers its transformation into usable heuristics.

Keywords: Internationalization; Heuristics; Decision-making; Cognition; Experience (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:iburev:v:29:y:2020:i:6:s0969593120300974

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DOI: 10.1016/j.ibusrev.2020.101752

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