Management Control Systems and International Entrepreneurship in Small, Young Firms from Resource-Based Theory, Contingence, and Effectuation Approach Perspectives

Abstract

This study analyses how entrepreneurs adapt or change international control management and organisation structures in response to their resources and capabilities and the context of the situation, from the resource-based theory (RBT) and contingency and effectuation framework approaches, taking the dynamism from knowledge-intensive services (KIS) into consideration. A multiple case study has been performed, based on semi-structured interviews with nine founders (entrepreneurs) of less-than 5-year-old international businesses who are actively involved in the management. All the interviews have been recorded, coded, and analysed through factsheets. The findings suggest that there is a relation between entrepreneurship and the characteristics of the entrepreneur; the character of owners or founders is key to embarking on this kind of business challenge. Furthermore, the age and nature of the manager—entrepreneur or non-entrepreneur—influence the business direction. This research analyses the role of the founder, owner, and/or management depending on the resources, capabilities, and uncertain contexts of the small, young firms. The age of the organisation’s and the degree of professionalism of the management’s impact on the management style and the use of control mechanisms are scarcely analysed yet, which could improve the relationships in MCS to achieve local and global control needs.

Balance or Combine? Ambidextrous Innovation Strategy Selection of International Entrepreneurial-Oriented Enterprises in China

“…Due to the differences in factor endowment, development priorities, and the labor productivity of different countries, the international competitiveness of various industries is different [28]. Contingency theory holds that factors such as innovation strategies, organizational structures, and corporate culture that are highly compatible with enterprises can positively moderate the promoting effect of innovation on enterprise performance; contrastingly, an inappropriate strategic choice can inhibit the promoting effect [29,30]. Scholars attempt to utilize the contingency theory as a method of addressing the problems of intensified competition and high uncertainty faced by enterprises in the internationalization process, and they utilize the contingency theory to explain the leadership characteristics [30] and social networks [10] that affect international entrepreneurial-oriented enterprises in the operation process.…”

“…Contingency theory holds that factors such as innovation strategies, organizational structures, and corporate culture that are highly compatible with enterprises can positively moderate the promoting effect of innovation on enterprise performance; contrastingly, an inappropriate strategic choice can inhibit the promoting effect [29,30]. Scholars attempt to utilize the contingency theory as a method of addressing the problems of intensified competition and high uncertainty faced by enterprises in the internationalization process, and they utilize the contingency theory to explain the leadership characteristics [30] and social networks [10] that affect international entrepreneurial-oriented enterprises in the operation process. International entrepreneurial-oriented enterprises should respond to changes in the internal and external environment and formulate appropriate innovation strategies.…”