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

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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.

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Authors and Affiliations

  1. Turku School of Economics, University of Turku, Turku, Finland

    Niina Nummela & Päivi Jokela

  2. School of Business, Lappeenranta University of Technology, Lappeenranta, Finland

    Sami Saarenketo

  3. Ulster Business School, University of Ulster, Londonderry, UK

    Sharon Loane

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  1. Niina Nummela
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  2. Sami Saarenketo
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  3. Päivi Jokela
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  4. Sharon Loane
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Correspondence to Niina Nummela.

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Nummela, N., Saarenketo, S., Jokela, P. et al. Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies. Manag Int Rev 54, 527–550 (2014). https://doi.org/10.1007/s11575-014-0211-x

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  • DOI: https://doi.org/10.1007/s11575-014-0211-x

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