Antecedents and consequences of effectuation and causation in the international new venture creation process

Abstract

The selection of the entry mode in an international market is of key importance for the venture. A process-based perspective on entry mode selection can add to the International Business and International Entrepreneurship literature. Framing the international market entry as an entrepreneurial process, this paper analyzes the antecedents and consequences of causation and effectuation in the entry mode selection. For the analysis, regression-based techniques were used on a sample of 65 gazelles. The results indicate that experienced entrepreneurs tend to apply effectuation rather than causation, while uncertainty does not have a systematic influence. Entrepreneurs using causation-based international new venture creation processes tend to engage in export-type entry modes, while effectuation-based international new venture creation processes do not predetermine the entry mode.

Alerta Empreendedor e as abordagens causation e effectuation sobre empreendedorismo

“…Cabe ressaltar que não é possível estabelecer uma abordagem como melhor. A adoção de cada processo e os resultados obtidos por meio deles dependerá de cada situação e de suas particularidades (Harms & Schiele, 2012). Além disso, de acordo com Fisher (2012), as abordagens não são excludentes, podendo ser combinadas para um maior sucesso na constituição e na condução de novos empreendimentos.…”

A time-based process model of international entrepreneurial opportunity evaluation

“…The effectuation perspective, derived from the entrepreneurial decision-making research, is a problem-solving approach that eschews prediction or planning and uses practices aimed to control uncertainty, including the affordable-loss principle, contingency leveraging, and market cocreation with stakeholders Sarasvathy, 2001). The small body of internationalization research that employs the effectuation lens has studied the extent of effectuation in international new venture creation (Harms & Schiele, 2012), the application of effectuation on internationalization (Chetty, Ojala, & Leppäaho, 2015;Andersson, 2011), and the implications of effectuation on the internationalization process (Kalinic, Sarasvathy, & Forza, 2014). Despite their valuable contributions to internationalization research, these studies largely impose the effectuation concept on data (rather than 'letting the data speak' to inform theory development), and they focus on the static, atemporal aspect of the entrepreneur's decision-making.…”

Antecedents of Entrepreneurial Processes of Causation and Opportunity Recognition in Building Material Retail Trade in Nigeria

“…Most of the entrepreneurial studies so far have been conducted in Western countries (Lau, Can, & Ho, 2004;Zhao & Aram, 1995;Lin, 1998) and our study will be among the first few to be conducted in Nigeria exploring the antecedences of causation. Previous study on antecedents of causation was conducted on a smaller sample of 65 companies in Germany (Harms & Schiele, 2012). The framework used in this study is presented in Figure 1.1.…”

“…Consequently, previous studies are qualitative, conceptual and experimental. To date the antecedents of causation remains unexplored (Harms & Schiele, 2012). The main objective of this study is (1) to explore factors that can predict the causation process and (2) examine the influence of entrepreneurial causation process on opportunity recognition process.…”

“…The findings suggest that entrepreneurial causation process is significant predictor of opportunity recognition. Harms and Schiele (2012) is the only study that considered antecedents of causation and effectuation in International New Venture Creation process. The present study departed from Harms and Schiele's study by identifying antecedents of Causation in small business enterprises (Retail business).…”