Decision-makers’ logic of control and SME international performance

Karami, Masoud; Tang, Jintong

doi:10.1108/jbim-11-2020-0516

Cited by 16 publications

(14 citation statements)

References 103 publications

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“…Small- and medium-sized enterprises (SMEs) make a large contribution to the national economies in the developing countries (Ayyagari et al , 2011; Mendoza and Lau, 2014; Nguyen et al , 2019; Rahman and Mendy, 2019). In the context of globalisation, many SMEs attempt to export their products to international markets for survival and growth (Karami and Tang, 2022; Rahman and Mendy, 2019). However, the SMEs, especially those in developing countries, often face barriers to internationalisation (Al‐Hyari et al , 2012; Mittelstaedt et al , 2003; Rahman and Mendy, 2019).…”

Section: Introductionmentioning

confidence: 99%

Innovation and export: evidence from manufacturing SMEs in a developing economy

Tran

Thanh

Duy

2023

IJDI

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Purpose Innovation allows firms to gain or maintain their competitive advantages in both domestic and international markets. However, the findings on the association between innovation and export vary depending on countries, samples, time, variables and methods used for empirical analysis. The purpose of this study is to examine the influence of different types of innovation on export in small- and medium-sized enterprises (SMEs) in a developing economy in the context of global integration. Design/methodology/approach For empirical analysis, the authors use a sample of manufacturing SMEs in Vietnam in 2013 and 2015. Because the firms do not engage in innovation at random in the research sample, the authors use propensity score matching to account for self-selection bias. The authors also use different matching estimators to ensure robust results. Findings Innovation activities are found to be positively associated with the probability of engaging in export activities. The effects are mainly contributed by the adoption of new technology or process. Practical implications This research underscores the importance of public interventions and policies designed to promote innovation and export in the SMEs. Originality/value To the best of the authors’ knowledge, this research is one of the early attempts to examine the association between different types of innovation and export in SMEs in a developing economy.

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Section: Introductionmentioning

confidence: 99%

Innovation and export: evidence from manufacturing SMEs in a developing economy

Tran

Thanh

Duy

2023

IJDI

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“…Such decision-making logic focuses on the given means, attempts to control the future and maintains flexibility and cooperation. Entrepreneurs typically apply it to identify potential market opportunities in an uncertain environment (Laskovaia et al , 2017; Sarasvathy and Kotha, 2001; Karami and Tang, 2021). Compared with effectuation, the traditional decision-making logic is referred to as causation.…”

Section: Introductionmentioning

confidence: 99%

The impact of decision-making styles (effectuation logic and causation logic) on firm performance: a meta-analysis

Zhang

Sha

et al. 2022

JBIM

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Purpose As two essential styles of firm decision-making, the relationships among effectuation logic, causation logic and firm performance are unclear. It is helpful to deepen the understanding of reasoning theory and the process of decision-making. The purpose of this paper is to explore the relationship between effectuation logic, causation logic and firm performance. Design/methodology/approach Based on 31 independent empirical studies (including 11,600 samples) published by predecessors, meta-analysis is used to systematically integrate the impact of two decision-making styles on firm performance and explore the potential factors affecting their relationship. Findings The results show a positive correlation between two decision-making styles and firm performance and the influence of effectuation decision-making style in firm performance is slightly stronger. However, the application environment is different: in the emerging market, the causation decision-making style is more effective for firm performance management. When the firm chooses the effectuation decision-making style, it is more effective for performance management in the emerging market. In addition, the industry type, firm performance evaluation tools, national development level and firm scale and firm age can significantly moderate the impact of two decision-making styles on firm performance. Research limitations/implications Both decision-making logics are possible ways for firm to success. Still, the future needs to dig deeper into the black box that can unlock the decision-making styles to achieve firm performance or competitive advantage based on other factors of the decision-behavior-outcome business model, more longitudinal data and experiments. Originality/value To the best of the authors’ knowledge, this is the first study to explore the impact of decision-making styles (effectuation logic and causation logic) on firm performance using a meta-analysis.

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“…Recent studies grounded in RBV emphasize that entrepreneurs' decision logic determines their understanding of gathering external resources for BMI (Galkina & Jack, 2021; Ruiz‐Jiménez et al, 2021; Yu et al, 2021). It is proposed that entrepreneurs' decision logic is key mechanism to transforming entrepreneurial network resources into BMI (Karami & Tang, 2021; Zhou et al, 2022). Effectuation is a decision logic for achieving BMI that has recently been discussed in entrepreneurship and innovation research (Berends et al, 2014a; Fisher, 2012; Futterer et al, 2018; Pati et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

“…It is proposed that entrepreneurs' decision logic is key mechanism to transforming entrepreneurial network resources into BMI (Karami & Tang, 2021;Zhou et al, 2022). Effectuation is a decision logic for achieving BMI that has recently been discussed in entrepreneurship and innovation research (Berends et al, 2014a;Fisher, 2012;Futterer et al, 2018;Pati et al, 2021).…”

Section: Introductionmentioning

confidence: 99%

Entrepreneurial networks, effectuation and business model innovation of startups: The moderating role of environmental dynamism

Jie

Morrison

et al. 2022

Creat Innov Manage

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The effects of entrepreneurial networks and effectuation on business model innovation (BMI) are widely recognized. However, the existing researches focus on the driving of entrepreneurial networks (external factor) and effectuation (internal factor) on BMI separately. Few studies explore the combination of internal and external drivers. Consequently, how entrepreneurial networks' resource translates into the BMI in start-ups remains unclear. Based on RBV, this research explored the impacts of entrepreneurial networks on BMI through effectuation in dynamic environments. A survey of 408 start-ups in China reveals that (1) entrepreneurial networks have positive impacts on BMI. Particularly, network size and network strength positively impact BMI. (2) Effectuation plays a mediating role in the relationship between entrepreneurial networks and BMI. (3) Environmental dynamism strengthens the relationship between effectuation and BMI. The findings enrich the theoretical understanding of the relationships among entrepreneurial networks, effectuation and BMI and provide practical implications for start-up BMI in dynamic environments.

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Decision-makers’ logic of control and SME international performance

Cited by 16 publications

References 103 publications

Innovation and export: evidence from manufacturing SMEs in a developing economy

Innovation and export: evidence from manufacturing SMEs in a developing economy

The impact of decision-making styles (effectuation logic and causation logic) on firm performance: a meta-analysis

Entrepreneurial networks, effectuation and business model innovation of startups: The moderating role of environmental dynamism

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