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Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies

Author

Listed:
  • Niina Nummela

    (University of Turku)

  • Sami Saarenketo

    (Lappeenranta University of Technology)

  • Päivi Jokela

    (University of Turku)

  • Sharon Loane

    (University of Ulster)

Abstract

This paper extends current understanding on international growth process of born global firms from the perspective of strategic decision-making. The data were collected from three software companies in Finland, Ireland and Israel both in real-time and retrospectively, and data triangulation was employed to increase the validity of the findings. With a longitudinal approach, we captured the dynamics of the post-entry international growth process and the critical events that act as decision-making triggers. The decision-making of born global firms seems to be characterised by alternating periods of causation- and effectuation-based logics. Triggers for amending the logic include, for example, change of key persons and the search for external funding. Co-existence of the two decision-making logics is possible, due to different degrees of uncertainty in market and technology or multiple decision-makers involved. The contribution of the study is threefold: first, it addresses gaps in international entrepreneurship research by describing how born global firms make strategic decisions and who are involved in the decision-making. Second, it identifies critical incidents which trigger a change in the decision-making process of a born global firm. Third, it provides alternative insights to why decision-making logic may change or why two decision-making logics may co-exist.

Suggested Citation

  • Niina Nummela & Sami Saarenketo & Päivi Jokela & Sharon Loane, 2014. "Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies," Management International Review, Springer, vol. 54(4), pages 527-550, August.
    • Handle: RePEc:spr:manint:v:54:y:2014:i:4:d:10.1007_s11575-014-0211-x
    DOI: 10.1007/s11575-014-0211-x
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