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Rationality and dynamism on entrepreneurial orientation to the pace of internationalization: The moderating role of environmental munificence

Author

Listed:
  • Anas Hakeem

    (Umm Al Qura University)

  • Nizar Raissi

    (Umm Al Qura University
    University of Tunis)

  • Henda Matoussi

    (Jeddah International College (JICollege))

Abstract

The study aims to explore the relationship between entrepreneurial orientation (EO), organizational information processing through procedural rationality, and its impact on strategic decision-making (SDM). Additionally, it investigates how procedural rationality in SDM influences the pace of internationalization, with a focus on the moderating effects of environmental munificence. It employs an analytical approach, utilizing structural equation modeling through partial least squares (PLS-SEM). This method allows for a comprehensive examination of the complex relationships between the variables under investigation. Data for this study were gathered from a sample of 105 micro, small, and medium-sized enterprises (MSMEs) in Saudi Arabia. The inclusion of diverse MSMEs ensures a nuanced understanding of the phenomena within the specific business context. The analytical framework involves structural relations path analysis, revealing nuanced insights into the interplay of EO, procedural rationality, and their impact on SDM and internationalization pace. The findings highlight a significant positive relationship between EO and procedural rationality in SDM. Moreover, the study identifies a substantial influence of high procedural rationality levels on the pace of internationalization. Interestingly, no discernible impact of environmental munificence on the relationship between procedural rationality and internationalization pace was observed. Based on the results, organizations are encouraged to nurture EO, as it enhances the role of procedural rationality in SDM, ultimately expediting the internationalization process. Practically, the findings guide practitioners to focus on procedural rationality as a strategic tool for effective decision-making, especially in internationalization. Policymakers can leverage these insights to craft policies, supporting the growth and internationalization of MSMEs.

Suggested Citation

  • Anas Hakeem & Nizar Raissi & Henda Matoussi, 2024. "Rationality and dynamism on entrepreneurial orientation to the pace of internationalization: The moderating role of environmental munificence," Journal of International Entrepreneurship, Springer, vol. 22(2), pages 213-247, June.
    • Handle: RePEc:kap:jinten:v:22:y:2024:i:2:d:10.1007_s10843-024-00359-4
    DOI: 10.1007/s10843-024-00359-4
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