Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets

Mainela, Tuija; Puhakka, Vesa

doi:10.1007/s10843-008-0034-6

Cited by 75 publications

(48 citation statements)

References 51 publications

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“…The final theme for Type A entrepreneurship research shows a continuous and creative process in which entrepreneurial managers are absorbed into the emerging social community of the international venture (Mainela and Puhakka, 2009). Opportunity recognition is linked to the personal initiatives of the managers, i.e.…”

Section: Entrepreneurship (Emerged 1997)mentioning

confidence: 99%

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

Jones

Coviello

Tang

2011

Journal of Business Venturing

967

573

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Section: Entrepreneurship (Emerged 1997)mentioning

confidence: 99%

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

Jones

Coviello

Tang

2011

Journal of Business Venturing

967

573

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“…In other words, a hostile environment in particular calls for the development of networks (Chakravarthy 1997). Furthermore, turbulent foreign environments specifically call for proactive networking and the use of relationships (Mainela and Puhakka 2009) in order to absorb the high-entry risks (Li and Qian 2008). Welch and Welch (2004) found that the structure of the networks of internationalized firms vary depending on environmental characteristics such as the industry structure and governmental involvement.…”

Section: A Review Of the Literaturementioning

confidence: 99%

The effect of network competence and environmental hostility on the internationalization of SMEs

et al. 2012

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Research findings suggest that networks offer small and medium-sized enterprises (SMEs) opportunities to internationalize successfully. However, the role of internal organizational competence in the process of developing and maintaining such networks in hostile external environments has received little attention. The aim of this study is to shed light on the relationship by examining the positive influence that the network competence of SMEs has on their propensity to internationalize, and on their subsequent international performance. Given that the willingness of firms to enter and perform well in markets appears to also depend on environmental hostilities, this external influence on SME internationalization is incorporated into the study. We also examine whether the level of environmental hostility moderates the relationship between network competence and SME internationalization. The empirical part of the study comprises a web survey of 298 Finnish SMEs representing five different industry sectors: metal, food, furniture, software, and knowledge-intensive business services. Confirmatory factor analysis and regression models are used in the analysis. The results indicate that higher levels of network competence are positively related to the propensity of SMEs to internationalize, as well as to their international performance. Conversely, the level of environmental hostility has a negative effect on the performance measure, but not on the internationalization propensity. Additionally, the influence of network competence is not moderated by environmental hostility. The results indicate that internal network competence and external environmental hostility play a role in SME internationalization, and that the positive influence of network competence exists independently of the hostility in the environment.

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“…Furthermore, we build on previous research that has initiated the process of integrating effectuation and internationalization process (see Mainela and Puhakka, 2009;Sarasvathy et al 2014;Schweizer et al, 2010). Both effectuation approach and Uppsala model have relationships as a central focus to provide knowledge and opportunity (Johanson and Vahlne, 2009;Sarasvathy, 2001).…”

Section: Introductionmentioning

confidence: 99%

Effectuation and foreign market entry of entrepreneurial firms

Chetty

Ojala

Leppäaho

2015

European Journal of Marketing

112

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Purpose: The purpose of this study is to examine the decision-making process for entrepreneurial firms when entering foreign markets and how and why they entered those markets.Design/methodology/approach: We combine a nascent theory in entrepreneurship called effectuation with internationalization process theory as the conceptual framework to study decision-making under uncertainty. The central concept in both these theories is relationships and how they can be used to gain knowledge and thus reduce uncertainty and in the case of effectuation to co-create opportunities to enter foreign markets. The research design involves a multiple case study of software firms from Finland and New Zealand. Findings:We found that entrepreneurs differentiate between foreign market selection and foreign market entry during their internationalization process, potentially using different decision-making processes in them. They tend to interweave effectuation and causation logics as substitutes in their decision-making. Uncertainty during foreign market entry is not always a barrier because it can provide opportunities depending on the logic used. In addition, we have evidence that entrepreneurs who have existing relationships in foreign markets tend to use effectuation to select and enter foreign markets.2 Originality/value: This paper transposes effectuation from its original field of entrepreneurship research to the context of internationalizing entrepreneurial firms. Consequently, it contributes towards understanding the decision-making process for selecting and entering foreign markets.

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Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets

Abstract: Opportunity discovery, Entrepreneurial behaviour, International joint venture, Process,

Cited by 75 publications

References 51 publications

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

The effect of network competence and environmental hostility on the internationalization of SMEs

Effectuation and foreign market entry of entrepreneurial firms

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