Effectuation, network-building and internationalisation speed

Abstract

We extend research on the speed of new venture internationalisation by distinguishing between effectual and non-effectual (i.e. causal) network-building approaches, and conceptualising their differential effects on the dimensions of initial entry speed, country (i.e. international) scope speed and international commitment speed. Drawing upon the extant literature on internationalisation speed, network building and effectuation theory, we argue that an effectual approach to networkbuilding is positively associated with initial entry speed and international scope speed, but negatively associated with international commitment speed, while a causal approach is negatively associated with initial entry speed and international scope speed, but positively associated with international commitment speed. In addition, we contribute to effectuation scholarship by elaborating on the causal-effectual distinction in network-building and offering internationalisation speed as an important and interesting outcome variable.

Well-trodden highways and roads less traveled: Entrepreneurial-oriented behavior and identity construction in international entrepreneurship narratives

“…Starting from an attempt to complement our view of IE with a sense-making perspective (Weick 1995;Rasmussen et al 2001)-hence to include alternative interpretations of individual entrepreneurial behavior-we sought to apply our methods in such a way as to encompass the Bfragile, emerging and provisional character of any kind of 'unit' that emerges from and is embedded within a process ( Steyaert 2007: 459). We also applied principles of narrative inquiry into human life experiences (Polkinghorne 1988;Riessman 1993), which see as having made major contributions to the study of human cognition, by drawing upon script theory and autobiographic memory (Hiles and Cermák 2008). Accordingly, we made use of life narratives as Bscripts^ (McAdams 2006).…”

“…In this sense, the interviews themselves exist as opportunities for B(re)constructing narratives in different ways, evolving different perspectives on the past, leading to different understandings of the present, with implications for the future^ (Birch and Miller 2000: 93; referring also to Ricoeur 1991;Rosenthal 1993). Overall, there is a well-theorized and thoroughly analyzed link between the construction of identity (Bruner 1995;Riessman 1993) and the mental representations of individuals structured in terms of narratives (Polkinghorne 1988). Of particular relevance for this study is the recognition of narrative as fundamental in the formation of entrepreneurial identity (Jones et al 2008;Mills and Pawson 2006;Nielsen and Lassen 2012;Yitshaki and Kropp 2016).…”

“…In general, life experiences as narratives are seen as a fruitful source for describing human actions and experiences. The intrinsic interpretation of life experiences (Polkinghorne 1988) serves as the basic organizing principle of human cognition (Boland and Tenkasi 1995). Moreover, such life narratives give prominence to human agency (Riessman 1993).…”

“…Subsequent behavior is driven by the (now deeper) beliefs, adopted on the basis of the cognitive structures previously formed (Krueger 2007). Accordingly, in our analysis of the narratives (Polkinghorne 1988), we sought to follow the progressions through which founder-CEOs made sense of their early and ongoing experiences, forming a developing sense of their selves relative to their actions (McAdams 2013) within the stream of experiences relating to their IE journeys. Figure 1 encompasses the above-mentioned concepts.…”

Building of Academics’ Networks—An analysis based on Causation and Effectuation theory

“…It has been suggested that entrepreneurs are able to shift between the use of effectuation and causation (Schreier and Senn 2018;Andersson 2011). The effectual approach to network-building has been explained to be positively associated with initial entry speed and international scope speed while a causal approach is negatively associated with initial entry speed and international scope speed (Prashantham et al 2019). Galkina and Chetty (2015) also show that entrepreneurs of small and medium enterprises network with interested partners, instead of carefully selecting international partners according to predefined network goals.…”