The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty

Igor Laine () and Tamara Galkina ()
Additional contact information
Igor Laine: Lappeenranta University of Technology
Tamara Galkina: University of Vaasa

International Entrepreneurship and Management Journal, 37 pages

Abstract: Abstract The institutional context of Russia and the recent regime of foreign trade sanctions makes it a natural laboratory to study change in decision making regarding the international activities of SMEs. This research explores how the increased institutional uncertainty is evaluated, enacted and responded to by SMEs that are heavily involved in relations with international suppliers. This longitudinal multiple-case study reveals that although firms simultaneously use both causation and effectuation in their decision making, an increase of institutional uncertainty boosts effectuation. The study shows that the intensity of both types of decision-making logic varies along the studied period in accordance to changing perceptions of institutional uncertainty. Also, the studied firms use effectuation logic differently enabling us to distinguish two types of effectuation with contrasting performance implications: opportunity-driven effectuation and survival effectuation.

Keywords: Effectuation; Causation; Decision making; Institutional uncertainty; Russia (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://link.springer.com/10.1007/s11365-016-0423-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intemj:v::y::i::d:10.1007_s11365-016-0423-6

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/11365

DOI: 10.1007/s11365-016-0423-6

Access Statistics for this article

International Entrepreneurship and Management Journal is currently edited by Salvador Roig

More articles in International Entrepreneurship and Management Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().