Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies

Niina Nummela (), Sami Saarenketo, Päivi Jokela and Sharon Loane
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Niina Nummela: University of Turku
Sami Saarenketo: Lappeenranta University of Technology
Päivi Jokela: University of Turku

Management International Review, 2014, vol. 54, issue 4, No 5, 527-550

Abstract: Abstract This paper extends current understanding on international growth process of born global firms from the perspective of strategic decision-making. The data were collected from three software companies in Finland, Ireland and Israel both in real-time and retrospectively, and data triangulation was employed to increase the validity of the findings. With a longitudinal approach, we captured the dynamics of the post-entry international growth process and the critical events that act as decision-making triggers. The decision-making of born global firms seems to be characterised by alternating periods of causation- and effectuation-based logics. Triggers for amending the logic include, for example, change of key persons and the search for external funding. Co-existence of the two decision-making logics is possible, due to different degrees of uncertainty in market and technology or multiple decision-makers involved. The contribution of the study is threefold: first, it addresses gaps in international entrepreneurship research by describing how born global firms make strategic decisions and who are involved in the decision-making. Second, it identifies critical incidents which trigger a change in the decision-making process of a born global firm. Third, it provides alternative insights to why decision-making logic may change or why two decision-making logics may co-exist.

Keywords: Born global; Decision-making; Effectuation; Causation; Software; Longitudinal study (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (54)

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DOI: 10.1007/s11575-014-0211-x

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