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

: Nummela N, Saarenketo S, Jokela P, Loane S

Publisher: Springer

: 2014

: Management International Review

: MIR

: 5

: 54

: 4

: 527

: 550

: 24

: 0938-8249

: 1861-8901

DOI: https://doi.org/10.1007/s11575-014-0211-x

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 decisionmaking
logic may change or why two decision-making logics may co-exist.
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 decisionmaking logic may change or why two decision-making logics may co-exist.