Abstract
New entrepreneurial logics such as effectuation, bricolage, and causation have become increasingly important in the entrepreneurship literature since the early 2000s. Whereas several studies have shown the compatibility of the three logics over time, few have focused on their combination in the context of the emergence and subsequent international growth of born global firms. Using qualitative research involving seven cases of French born globals, we studied the mix of their decision-making approaches over a period of 11 years. Findings reveal the complementarity of the three logics and their adoption depending on the company’s stage of development and the specific challenges it faces. They highlight the importance of entrepreneurs’ awareness of their dominant mind-set for decision-making and the need to develop their skills in relation to the other mind-sets. Finally, they stress the need to be able to identify the stakeholders’ mind-set to align mutual decision-making processes.
Resumé
Depuis le début des années 2000, de nouvelles logiques entrepreneuriales telles que l'effectuation, le bricolage et la planification ont pris une importance croissante dans la littérature en entrepreneuriat. Alors que plusieurs études ont montré la compatibilité de ces trois logiques dans le temps, peu d'entre elles se sont intéressées à leur combinaison dans le contexte de l'émergence et de la croissance internationale des entreprises nées globales. En mobilisant une recherche qualitative portant sur sept cas d'entreprises françaises nées globales, nous avons étudié la combinaison de leurs approches décisionnelles sur une période de onze années. Les résultats révèlent la complémentarité des trois logiques et leur adoption en fonction du stade de développement de l'entreprise et des défis spécifiques auxquels elles sont confrontées. Nous révélons l'importance de la prise de conscience par les entrepreneurs de leur logique dominante lors de la prise de décision et la nécessité de développer leurs compétences par rapport aux autres logiques. Enfin, nous soulignons la nécessité d'identifier la logique des parties prenantes pour aligner les processus de prise de décision requis.
Resumen
Desde principios de la década de los 2000, nuevas lógicas empresariales como la efectuación, el bricolaje y la planeación se han vuelto cada vez más importantes en la literatura en emprendimiento. Si bien varios estudios han demostrado la compatibilidad de las tres lógicas a lo largo del tiempo, pocos de ellos han analizado su combinación en el contexto del surgimiento y posterior crecimiento internacional de las empresas nacidas globales. Al movilizar una investigación cualitativa que involucró siete casos de empresas francesas nacidas globales, estudiamos la combinación de sus enfoques de toma de decisiones durante un período de once años. Los hallazgos revelan la complementariedad de las tres lógicas y su adopción según la etapa de desarrollo de la empresa y los desafíos específicos a los que se enfrenta. Revelan la importancia para los emprendedores de identificar su lógica dominante para la toma de decisiones y la necesidad de desarrollar sus habilidades en relación con las otras lógicas. Finalmente, destacan la necesidad de identificar la mentalidad de los grupos de interés para alinear los procesos de toma de decisiones requeridos.
Similar content being viewed by others
References
Adomako S, Frimpong K, Amankwah-Amoah J, Donbesuur F, Opoku RA (2021) Strategic decision speed and international performance: the roles of competitive intensity, resource flexibility, and structural organicity. Manag Int Rev 61(1):27–55
Alcalde H, Guerrero M (2016) Open business models in entrepreneurial stages: evidence from young Spanish firms during expansionary and recessionary periods. Int Entrep Manag J 12(2):393–413
Alsos GA, Clausen TH, Hytti U, Solvoll S (2016) Entrepreneurs’ social identity and the preference of causal and effectual behaviours in start-up processes. Entrep Reg Dev 28(3–4):234–258
Andersson S (2011) International entrepreneurship, born globals and the theory of effectuation. J Small Bus Enterp Dev 18(3):627–643
Andersson S, Wictor I (2003) Innovative internationalisation in new firms: born globals–the Swedish case. J Int Entrep 1(3):249–275
Ansoff HI (1980) Strategic issue management. Strateg Manag J 1(2):131–148
Aspelund A, Berg-Utby T, Skjevdal R (2005) Initial resources’ influence on new venture survival: a longitudinal study of new technology-based firms. Technovation 25(11):1337–1347
Baker T (2007) Resources in play: bricolage in the toy store (y). J Bus Ventur 22(5):694–711
Baker T, Miner AS, Eesley DT (2003) Improvising firms: bricolage, account giving and improvisational competencies in the founding process. Res Policy 32:255–276
Baker T & Nelson RE (2005) Creating something from nothing: Resource construction through entrepreneurial bricolage. Adm Sci Q 50(3):329–366
Beer S (1979) Brain of the firm. John Wiley & Sons Ltda, Chichester
Benevolo C, Penco L, Torre T (2021) Entrepreneurial decision-making for global strategies: a “heart–head” approach. Manag Decis. 59(5):1132–1157
Berends H, Jelinek M, Reymen I, Stultiëns R (2014) Product innovation processes in small firms: combining entrepreneurial effectuation and managerial causation. J Prod Innov Manag 31(3):616–635
Blank S (2013) Why the lean start-up changes everything. Harv Bus Rev 91(5):63–72
Byrne J, Delmar F, Fayolle A, Lamine W (2016) training corporate entrepreneurs: an action learning approach. J Small Bus Econ 47(2):479–506
Chandler G, DeTienne D, McKelvie A, Mumford T (2011) Causation and effectuation processes: a validation study. J Bus Ventur 26(3):375–390
Chetty S, Ojala A, Leppäaho T (2015) Effectuation and foreign market entry of entrepreneurial firms. Eur J Mark 49(9/10):1436–1459
Ciszewska-Mlinaric M, Obloj K, Wasowska A (2016) Effectuation and causation: two decision-making logics of INVs at the early stage of growth and internationalisation. J East Eur Manag Stud 21(3):275–297
Coviello NE (2006) The network dynamics of international new ventures. J Int Bus Stud 37(5):713–731
Crick D, Crick J (2014) The internationalization strategies of rapidly internationalizing high-tech UK SMEs: Planned and unplanned activities. Eur Bus Rev 26(5):421–448
Crick JM, Crick D, Chaudhry S (2020) Entrepreneurial marketing decision-making in rapidly internationalising and de-internationalising start-up firms. J Bus Res 113:158–167
Dane E, Pratt MG (2007) Exploring intuition and its role in managerial decision making. Acad Manag Rev 32(1):33–54
Daniel EM, Domenico MD, Sharma S (2015) Effectuation and home-based online business entrepreneurs. Int Small Bus J 33(8):799–823
De Clercq D, Zhou L (2014) Entrepreneurial strategic posture and performance in foreign markets: the critical role of international learning effort. J Int Mark 22(2):47–67
Delmar F, Shane S (2003) Does business planning facilitate the development of new ventures? Strateg Manag J 24(12):1165–1185
Desa G, Basu S (2013) Optimization or bricolage? Overcoming resource constraints in global social entrepreneurship. Strateg Entrep J 7(1):26–49
Dew N, Read S, Sarasvathy SD, Wiltbank R (2009) Effectual versus predictive logics in entrepreneurial decision-making: differences between experts and novices. J Bus Ventur 24(4):287–309
Dutton JE, Ottensmeyer E (1987) Strategic issue management systems: forms, functions, and contexts. Acad Manag Rev 12(2):355–365
Evers N, O’Gorman C (2011) Improvised internationalization in new ventures: the role of prior knowledge and networks. Entrep Reg Dev 23(7–8):549–574
Fisher G (2012) Effectuation, causation and bricolage: a behavioral comparison of emerging theories in entrepreneurship research. Entrep Theory Pract 36(5):1019–1051
Fuerst S, Zettinig P (2015) Knowledge creation dynamics within the international new venture. Eur Bus Rev 27(2):182–213
Gabrielsson P, Gabrielsson M (2013) A dynamic model of growth phases and survival in international business-to-business new ventures: the moderating effect of decision-making logic. Ind Mark Manag 42:1357–1373
Gabrielsson M, Gabrielsson P, Dimitratos P (2014) International entrepreneurial culture and growth of international new ventures. Manag Int Rev 54(4):445–471
Gartner WB (1985) A conceptual framework for describing the phenomenon of new venture creation. Acad Manag Rev 10(4):696–706
Gartner WB (2007) Entrepreneurial narrative and a science of the imagination. J Bus Ventur 22:613–627
Garud R, Karnøe P (2003) Bricolage versus breakthrough: distributed and embedded agency in technology entrepreneurship. Res Policy 32(2):277–300
Glaister AJ, Liu Y, Sahadev S, Gomes E (2014) Externalizing, internalizing and fostering commitment: the case of born-global firms in emerging economies. Manag Int Rev 54(4):473–496
Gray B, Farminer A (2014) And no birds sing—reviving the romance with international entrepreneurship. J Int Entrep 12(2):115–128
Greiner LE (1972) Revolution and evolution as an organization grows. Harv Bus Rev 50(4):37–46
Gundry LK, Kickul JR, Griffiths MD, Bacq SC (2011) Creating social change out of nothing: the role of entrepreneurial bricolage in social entrepreneurs' catalytic innovations. In: Lumpkin GT, Katz JA (Ed.) Social and Sustainable Entrepreneurship (Advances in Entrepreneurship, Firm Emergence and Growth, Vol. 13), Emerald Group Publishing Limited, Bingley, 1–24.
Harms R, Schiele H (2012) Antecedents and consequences of effectuation and causation in the international new venture creation process. J Int Entrep 10(2):95–116
Hauser A, Eggers F, Güldenberg S (2020) Strategic decision-making in SMEs: effectuation, causation, and the absence of strategy. Small Bus Econ 54(3):775–790
Hindle K, Senderovitz M (2010) Unifying the three principal contending approaches to explaining early stage entrepreneurial decision-making and behaviour. Front Entrep Res 30(6):9–12
Hlady Rispal M, Servantie V (2017) Business Models impacting social change in violent and poverty-stricken neighbourhoods: a case study in Colombia. Int Small Bus J 35(4):427–448
Janssen F, Fayolle A, Wuilaume A (2018) Researching bricolage in social entrepreneurship. Entrep Reg Dev 30(3–4):450–470
Kazanjian RK (1988) Relation of dominant problems to stages of growth in technology-based new ventures. Acad Manag J 31(2):257–279
Kerr J, Coviello N (2019) Formation and constitution of effectual networks: a systematic review and synthesis. Int J Manag Rev 21(3):370–397
Kihlstrom RE, Laffont JJ (1979) A general equilibrium entrepreneurial theory of firm formation based on risk aversion. J Polit Econ 87(4):719–748
Laanti R, Gabrielsson M, Gabrielsson P (2007) The globalization strategies of business-to-business born globals firms in the wireless technology industry. Ind Mark Manag 36(8):1104–1117
Laine I, Galkina T (2017) The interplay of effectuation and causation in decision making: Russian SMEs under institutional uncertainty. Int Entrep Manag J 13(3):905–941
Le Loarne-Lemaire S, Maalaoui A (2015) How high-tech entrepreneurs bricole the evolution of business process management for their activities. Bus Process Manag J 21(1):152–171
Lévi-Strauss C (1966) The savage mind. University of Chicago Press, Chicago
March JG (1991) Exploration and exploitation in organizational learning. Organ Sci 2(1):71–87
Martina RA (2018) Toward a theory of affordable loss. Small Bus Econ 54(3):751–774
McDougall P, Oviatt B (2000) International entrepreneurship: the intersection of two research paths. Acad Manag J 43(5):902–906
Mintzberg H (1978) Patterns in strategy formation. Manag Sci 24(9):934–948
Nadkarni S, Narayanan VK (2007) Strategic schemas, strategic flexibility, and firm performance: The moderating role of industry clockspeed. Strateg Manag J 28(3):243–270
Nummela N, Saarenketo S, Jokela P, Loane S (2014) Strategic decision-making of a born global: a comparative study from three small open economies. Manag Int Rev 54(4):527–550
Oviatt BM, McDougall PP (1994) Towards a theory of international new ventures. J Int Bus Stud 25(1):45–64
Perry JT, Chandler GN, Markova G (2012) Entrepreneurial effectuation: a review and suggestions for future research. Entrep Theory Pract 36(4):837–861
Prashantham S, Kumar K, Bhagavatula S, Sarasvathy SD (2019) Effectuation, network-building and internationalisation speed. Int Small Bus J 37(1):3–21
Read S, Song M, Smit W (2009) A meta-analytic review of effectuation and venture performance. J Bus Ventur 24(6):573–587
Renko M (2013) Early challenges of nascent social entrepreneurs. Entrep Theory Pract 37(5):1045–1069
Reynolds PD (2007) Entrepreneurship in the United States. Springer, New York
Sarasvathy SD (2001) Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency. Acad Manag Rev 26(2):243–288
Sarasvathy SD (2008) Effectuation: elements of entrepreneurial expertise. Edward Elgar Publishing, Northampton, p 368
Sarasvathy SD, Dew N (2008) Effectuation and over-trust: debating Goel and Karri. Entrep Theory Pract 32(4):727–737
Sarasvathy SD, Venkataraman S (2011) Entrepreneurship as method: open questions for an entrepreneurial future. Entrep Theory Pract 35(1):113–135
Sarasvathy SD, Kumar K, York JG, Bhagavatula S (2014) An effectual approach to international entrepreneurship: overlaps, challenges, and provocative possibilities. Entrep Theory Pract 38(1):71–93
Servantie V, Hlady Rispal M (2018) Bricolage, effectuation, and causation shifts over time in the context of social entrepreneurship. Entrep Reg Dev 30(3–4):310–335
Servantie V, Cabrol M, Guieu G, Boissin JP (2016) Is international entrepreneurship a field? A bibliometric analysis of the literature (1989–2015). J Int Entrep 14(2):168–212
Shane S (2012) Reflections on the 2010 AMR decade award: delivering on the promise of entrepreneurship as a field of research. Acad Manag Rev 37(1):10–20
Shane S, Venkataraman S (2000) The promise of entrepreneurship as a field of research. Acad Manag Rev 25(1):217–226
Simon M, Houghton SM, Aquino K (2000) Cognitive biases, risk perception, and venture formation: how individuals decide to start companies. J Bus Ventur 15(2):113–134
Smolka KM, Verheul I, Burmeister-Lamp K, Heugens PP (2018) Get it together! Synergistic effects of causal and effectual decision–making logics on venture performance. Entrep Theory Pract 42(4):571–604
Spence M, Crick D (2006) A comparative investigation into the internationalisation of Canadian and UK high-tech SMEs. Int Mark Rev 23(5):524–548
Sullivan Mort G, Weerawardena J (2006) Networking capability and international entrepreneurship: how networks function in Australian born global firms. Int Mark Rev 23(5):549–572
Tasavori M, Kwong C, Pruthi S (2018) Resource bricolage and growth of product and market scope in social enterprises. Entrep Reg Dev 30(3–4):336–361
Villani E, Linder C, Grimaldi R (2018) Effectuation and causation in science-based new venture creation: a configurational approach. J Bus Res 83:173–185
Webb J, Ireland R, Hitt M et al (2011) Where is the opportunity without the customer? An integration of marketing activities, the entrepreneurship process, and institutional theory. J Acad Mark Sci 39(4):537–554
Welch C, Paavilainen-Mäntymäki E (2014) Putting process (back) in: research on the internationalization process of the firm. Int J Manag Rev 16(2):2–23
Welter C, Mauer R, Wuebker RJ (2016) Bridging behavioral models and theoretical concepts: effectuation and bricolage in the opportunity creation framework. Strateg Entrep J 10(1):5–20
Wiltbank R, Dew N, Read S, Sarasvathy SD (2006) What to do next? The case for non-predictive strategy. Strateg Manag J 27(10):981–998
Worren N, Moore K, Cardona P (2002) Modularity, strategic flexibility, and firm performance: a study of the home appliance industry. Strateg Manag J 23(12):1123–1140
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendix 1. Synthesis of cases
Appendix 1. Synthesis of cases
F1 | F2 | F3 | F4 | F5 | F6 | F7 | |
---|---|---|---|---|---|---|---|
Year of creation | 2005 | 2004 | 2003 | 2008 | 2007 | 2002 | 2004 |
Year of first sales | 2007 | 2006 | 2004 | 2008 | 2007 | 2005 | 2004 |
Year of first exports | 2007 | 2006 | 2004 | 2009 | 2009 | 2005 | 2004 |
Current situation | Bankrupt (2014) | Bankrupt (2011) | Sold (2015) | Sold (2014) | Still performing | Bankrupt (2014) | Sold part of Business Unit (2016) |
Interviews (length) | 16/07/2009 (2h30) 14/10/2009 (2 h) 15/10/2009 (50 min) 25/11/2009 (1 h) 16/06/2016 (1 h) | 16/07/2009 (1h45) 16/10/2009 (1h30) 23/11/2009 (1h30) 24/06/2016 (1H) | 21/07/2009 (1h35) 24/11/2009 (1h15) | 08/07/2009 (1 h) 25/11/2009 (50 min) | 08/10/2009 (1 h) 25/11/2009 (45 min) | 16/10/2009 (1h30) 24/11/2009 (1h45) 8/6/2016 (2 h) 13/6/2016 (1 h) | 23/1/2007 (1h05) 8/3/2008 (45 min) 22/9/2009 (2h00) 22/3/2016 (45 min) 29/6/2016 (1h15) October 2018 (mail) |
Industry | Medical devices | Biotechnology | Biotechnology | Cosmetics | Internet | Electronic | Chemistry |
Offer | R&D in rachis | Large scale Industrial production of RNA | Cell-activity analysis services | Natural capillary treatment for smooth hair | Jobs search meta-motor | Tactile multitouch technology | Production and sales of rare molecules for R&D |
Head office | France | France | France | France | France | France | France |
Markets | USA, UK, Denmark, Germany, France, Turkey | France, Canada, Finland, Germany, USA, Australia | France, USA, UK, Belgium, Netherlands Denmark, Switzerland | France, Spain, Belgium, Switzerland, Italy, Greece, Morocco, Senegal, Tunisia, USA | France, Belgium, UK, Spain, USA, Australia | Germany, UK, Denmark, Sweden, USA, Canada, Mexico, Argentina, South Africa, Japan, Taiwan | USA, Germany, Switzerland, Sweden, Italy, India, South Korea, Japan, China |
Ownership structure | S.A.S | S.A | S.A | Sarl | Sarl | S.A.S | S.A.S |
Manager's profile | Chirurgien/Management 15Y exp. in ind 15Y exp. in int. Markets no exp. in Eship Fluent English | Biology/Management 0Y exp. in ind 1Y exp. in int. Markets no exp. in Eship Fluent English | Biochemical/Management 3Y exp. in ind 0Y exp. in int. Markets no exp. in Eship English correct | Computer Science 1Y exp. in ind 20Y exp. in int. Markets 1 previous exp. in Eship Fluent English, Port | Mgmt. / computer Sc 3Y exp. in ind 0.5Y exp. in int. Markets no exp. in Eship English / SP correct | Physics / Music eng. / electronic 0Y exp. in ind 0Y exp. in int. Markets no exp. in Eship Bad English | Chemistry 10Y exp. in ind 15Y exp. in int. Markets no exp. in Eship Bad English |
Average sales per year (2009) | 1 million euros | 0.6 million euros | 2 million euros | n.c | 0.2 million euros | 1.3 million euros | 1 million euros |
Number of employees | 9 | 11 | 17 | 5 | 4 | 35 | 2 |
Rights and permissions
About this article
Cite this article
Servantie, V., Hlady-Rispal, M. Born globals’ decision-making logics during their entrepreneurial process. J Int Entrep 20, 255–281 (2022). https://doi.org/10.1007/s10843-021-00301-y
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10843-021-00301-y