Effectuation Logic within Family Entrepreneurship: Investigating Internationalization Route of Family-Based Start-Up

• Authors: Kamran Jannatli

Abstracts

EN

This article aims to contribute to the literature on effectuation theory, particularly from the perspective of the internationalization process of a family-based start-up. Qualitative in nature, the study involved the use of a single case study, based on an interview with a co-founder. An explorative case study was prepared to demonstrate the use of effectuation logic in the internationalization route of family entrepreneurship. The study shows the decision-making of a family-based start-up on entering foreign markets, while the effect of being a family on internationalization was investigated. During the interview, it was revealed that the founders of the start-up in the early stages of internationalization continued making decisions based on effectual logic. However, as the firm’s experiences increased in the internationalization process, the founders adopted causal logic. There are few studies that have explored effectuation theory from the perspective of family businesses. Moreover, considering internationalization, the originality of the research contributes to the development of effectuation theory.

Keywords

EN

decision-making; effectual logic; family business; family entrepreneurship; internationalization

• Publisher: Politechnika Częstochowska
• Journal: Zeszyty Naukowe Politechniki Częstochowskiej. Zarządzanie
• Year: 2024
• Volume: I
• Issue: 53
• Pages: 21-38

Dates

published

2024

Contributors

author

Kamran Jannatli

• Jagiellonian University, Doctoral School of Social Sciences

References

• Ahoroni, Y. (2015). The Foreign Investment Decision Process. In: P. Buckley, P. Ghauri, International Business Strategy: Theory and Practice (p. 10-20), Routledge.
• Andersson, S. (2011). International Entrepreneurship, Born Globals and the Theory of Effectuation. Journal of Small Business and Enterprise Development, 18(3), 627-643. DOI: 10.1108/14626001111155745
• Arregle, J.-L., Chirico, F., Kano, L., Majocchi, A., & Schulze, W. (2021). Family Firm Internationalization: Past Research and an Agenda for the Future. Journal of International Business Studies, 52, 1159-1198. DOI: 10.1057/s41267-021-00425-2
• Baranyai, T., & Kozma, M. (2019). Family Firms with New Leaders in the Global Market – A Potential Success Story?. Acta Oeconomica, 69(S2), 131-162. DOI: 10.1556/032.2019.69.s2.6
• Bauweraerts, J., Arzubiaga, U., & Diaz-Moriana, V. (2022). Unveiling the Global Focus-Performance Relationship in Family Firms: The Role of the Board of Directors. International Business Review, 31(4), 101977. DOI: 10.1016/j.ibusrev.2022.101977
• Bee, C., & Neubaum, D. (2014). The Role of Cognitive Appraisal and Emotions of Family Members in the Family Business System. Journal of Family Business Strategy, 5(3), 323-333. DOI: 10.1016/j.jfbs.2013.12.001
• Birley, S., & Westhead, P. (1990). Growth and Performance Contrasts between “Types” of Small Firms. Strategic Management Journal, 11(7), 535-557. http://www.jstor.org/stable/2486327
• Blomstermo, A., Eriksson, K., Lindstrand, A., & Sharma, D. (2004). The Perceived Usefulness of Network Experiential Knowledge in the Internationalizing Firm. Journal of International Management, 10(3), 355-373. DOI: 10.1016/j.intman.2004.05.004
• De Massis, A., Fang, H., Kotlar, J., Memili, E., & Chrisman, J. (2017). The Pursuit of International Opportunities in Family Firms: Generational Differences and the Role of Knowledge-Based Resources. Global Strategy Journal, 8(1), 136-157. DOI: 10.1002/gsj.1197
• Dew, N., Sarasathy, S., Read, S., & Wiltbank, R. (2009). Affordable Loss: Behavioral Economic Aspects of the Plunge Decision. Strategic Entrepreneurship Journal, 3(2), 105-126. DOI: 10.1002/sej.66
• Easterby-Smith, M., Thorpe, R., & Jackson, P. (2015). Management and Business Research. Sage Publications.
• Elo, S., & Kyngäs, H. (2008). The Qualitative Content Analysis Process. Journal of Advanced Nursing, 62(1), 107-115. DOI: 10.1111/j.1365-2648.2007.04569.x
• Fletcher, D., De Massis, A., & Nordqvist, M. (2016). Qualitative Research Practices and Family Business Scholarship: A Review and Future Research Agenda. Journal of Family Business Strategy, 7(1), 8-25. DOI: 10.1016/j.jfbs.2015.08.001
• Fuerst, S., & Zettinig, P. (2015). Knowledge Creation Dynamics within the International New Venture. European Business Review, 27(2), 182-213. DOI: 10.1108/EBR-03-2013-0036
• Fuller, T., Warren, L., & Welter, F. (February, 2008). An Emergence Perspective On Entrepreneurship: Processes, Structure And Methodology. (Discussion Papers in Centre for Operational Research, Management Science and Information Systems, CORMSIS-08-02) University of Southampton.
• Gallo, M. A., & Pont, C. G. (1996). Important Factors in Family Business Internationalization. Family Business Review, 9(1), 45-59. https://api.semanticscholar.org/CorpusID:153858572
• Goede, W., Floriani, D. E., & Furtado, A. (2017). Family Influence on Internationalization: An Analysis of Risk Acceptance. Revista de Negócios, 22(1), 8-19. DOI: 10.7867/1980-4431.2017v22n1p8-19
• Gomez-Mejia, L., Cruz, C., Berrone, P., & De Castro, J. (2011). The Bind That Ties: Socioemotional Wealth Preservation in Family Firms. The Academy of Management Annals, 5(1), 653-707. DOI: 10.5465/19416520.2011.593320
• Granatabadi, F. (2005). Internationalization of Small and Medium-Sized Enterpresis in Iran. Lulea University of Technology, Departman of Business Administiration and Social Sciences. https://urn.kb.se/resolve?urn=urn%3Anbn%3Ase%3Altu%3Adiva-18202 (accessed: 04.01.2024).
• Graves, C., & Thomas, J. (2008). Determinants of the Internationalization Pathways of Family Firms: an Examination of Family Influence. Family Business Review, 21(2), 151-167. DOI: 10.1111/j.1741-6248.2008.00119.x
• Hamilton, E., Cruz, A. D., & Jack, S. (2017). Re-Framing the Status of Narrative in Family Business Research: Towards an Understanding of Families in Business. Journal of Family Business Strategy, 8(1), 3-12. DOI: 10.1016/j.jfbs.2016.11.001
• Johanson, J., & Vahlne, J.-E. (1990). The Mechanism of Internationalisation. International Marketing Review, 7(4), 7-17. DOI: 10.1108/02651339010137414
• Jones, M., Coviello, N., & Tang, Y. K. (2011). International Entrepreneurship Research (1989-2009): A Domain Ontology and Thematic Analysis. Journal of Business Venturing, 26(6), 632-659. DOI: 10.1016/j.jbusvent.2011.04.001
• Jones, O., & Li, H. (2017). Effectual Entrepreneuring: Sensemaking in a Family-Based Start-up. Entrepreneurship & Regional Development, 29(1), 467-499. DOI: 10.1080/08985626.2017.1297854
• Kellermanns, F., & Eddleston, K. (2004). Feuding Families: When Conflict Does a Family Firm Good. Entrepreneurship Theory and Practice, 28(3), 209-228. DOI: 10.1111/j.1540-6520.2004.00040.x
• Keupp, M. M., & Gassmann, O. (2009). The Past and the Future of International Entrepreneurship: A Review and Suggestions for Developing the Field. Journal of Management, 35(3), 600-633. DOI: 10.1177/0149206308330558
• Kontinen, T., & Ojala, A. (2010). The Internationalization of Family Businesses: A Review of Extant Research. Journal of Family Business Strategy, 1(2), 97-107. DOI: 10.1016/j.jfbs.2010.04.001
• Kraus, S., Harms, R., & Fink, M. (2011). Family Firm Research: Sketching a Research Field. International Journal of Entrepreneurship and Innovation Management, 13(1), 32-47. DOI: 10.1504/IJEIM.2011.038446
• Mura, L. (2019). Entrepreneurship Internationalization – Case of Slovak Family Businesses. Journal of Interdisciplinary Research, 9(1), 222-226. DOI: 10.37335/ijek.v9i2.147
• Le Breton-Miller I., & Miller, D. (2021). Family Businesses under COVID-19: Inspiring Models. Family Business Strategy, 13(2), 100452. DOI: 10.1016%2Fj.jfbs.2021.100452
• Li, L., Li, D., & Dalgıç, T. (2004). Internationalization Process of Small and Medium-Sized Enterprises: Toward a Hybrid Model of Experiental Learning and Planning. Management International Review, 44(1), 93-115. http://www.jstor.org/stable/40835979 (accessed: 04.01.2024).
• Littunen, H. (2000). Entrepreneurship and The Characteristics of The Entrepreneurial Personality. International Journal of Entrepreneurial Behaviour and Research, 6(6), 295-310. DOI: 10.1108/13552550010362741
• Mathews, J. A. (2006). Dragon Multinationals: New Players in 21st Century Globalization. Asia Pacific Journal of Management, 23, 5-27. DOI: 10.1007/s10490-006-6113-0
• Menendez-Requejo, S. (2005). Growth and Internationalisation of Family Business. International Journal of Globalisation and Small Business, 1(2), 122-133. DOI: 10.1504/IJGSB.2005.008009
• Miles, M., & Huberman, A. (1994). Qualitative Data Analysis: An Expanded Sourcebook (2nd ed.). Sage Publications.
• Miller, C., Cardinal, L., & Glick, W. (1997). Retrospective Reports in Organizational Research: A Reexamination of Recent Evidence. Academy of Management Journal, 40(1), 189-204. DOI: 10.2307/256935
• Miller, D., Steier, L., & Le Breton-Miller, I. (2016). What Can Scholars of Entrepreneurship Learn from Sound Family Businesses?. Entrepreneurship Theory and Practice, 40(3),445-455. DOI: 10.1111/etap.12231
• Oviatt, B., & McDougall, P. (2005). Defining International Entrepreneurship and Modeling the Speed of Internationalization. Entrepreneurship Theory and Practice, 29(5), 537-553. DOI: 10.1111/j.1540-6520.2005.00097.x
• Perry, J., Chandler, G., & Markova, G. (2011). Entrepreneurial Effectuation: A Review and Suggestions for Future Research. Entrepreneurship: Theory and Practice, 36(4), 837-861. DOI: 10.1111/j.1540-6520.2010.00435.x
• Pierce, J., & Jussila, I. (2010). Collective Psychological Ownership within the Work and Organizational Context: Construct Introduction and Elaboration. Journal of Organizational Behavior, 31(6), 810-834. DOI: 10.1002/job.628
• Pongelli, C., Caroli, M. G., & Cucculelli, M. (2016). Family Business Going Abroad: The Effect of Family Ownership on Foreign Market Entry Mode Decisions. Small Business Economics, 47(3), 787-801. http://www.jstor.org/stable/26154669 (accessed: 04.01.2024).
• Pukall, T., & Calabrò, A. (2013). The Internationalization of Family Firms: A Critical Review and Integrative Model. Family Business Review, 27(2), 103-125. DOI: 10.1177/0894486513491423
• Ratten, V., Ramadani, V., Dana, L.-P., Hoy, F., & Ferreira, J. (2017). Family Entrepreneurship and Internationalization Strategies. Review of International Business and Strategy, 27(2), 150-160.
• Sarasvathy, S. D. (2001). Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency. Academy of Management Review, 26(2), 243-263. DOI: 10.2307/259121
• Sarasvathy, S. D. (2008). Effectuation Elements of Entrepreneurial Expertise. Edward Elgar Publishing Limited. DOI: 10.4337/9781848440197
• Sarasvathy, S. D., Dew, N. (2013). Without Judgment: An Empirically-Based Entrepreneurial Theory of the Firm. The Review of Austrian Economic, 26, 277-296. DOI: 10.1007/s11138-011-0170-4
• Sarasvathy, S., York, J., & Bhagavatula, S. (2014). An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities. Theory & Practice, 38(1), 71-93. DOI: 10.1111/etap.12088
• Selden, P., & Fletcher, D. (2015). The Entrepreneurial Journey as an Emergent Hierarchical System of Artifact-Creating Processes. Journal of Business Venturing, 30(4), 603-615. DOI: 10.1016/j.jbusvent.2014.09.002
• Sharma, P., Chrisman, J., & Chua, J. (1997). Strategic Management of the Family Business: Past Research and Future Challenges. Family Business Review, 10(1), 1-35. DOI: 10.1111/j.1741-6248.1997.00001.x
• Stinchcombe, A. (1965). Social Structure and Organizations. In: Handbook of Organtzatlons (p. 142-193). Rand McNally.
• Toni, A., & Nassimbeni, G. (2001). The Export Propensity of Small Firms. International Journal of Entrepreneurial Behavior and Research, 7(4), 132-147. DOI: 10.1108/EUM0000000005762
• Wang, C., & Chugh, H. (2013). Entrepreneurial Learning: Past Research and Future Challenges. International Journal of Management Reviews, 16(1), 24-61. DOI: 10.1111/ijmr.12007
• Wolff, J., Pett, T., & Ring, J. (2015). Small Firm Growth as a Function of Both Learning Orientation and Entrepreneurial Orientation. International Journal of Entrepreneurial Behavior and Research, 21(5), 709-730. DOI: 10.1108/IJEBR-12-2014-0221
• Zahra, S. (2005). Entrepreneurial Risk Taking in Family Firms. Family Business Review, 31(2), 23-40. DOI: 10.1111/j.1741-6248.2005.00028.x
• Zellweger, T., Chrisman, J., Chua, J., & Steier, L. (2019). Social Structures, Social Relationships, and Family Firms. Entrepreneurship Theory and Practice, 43(2), 207-223. DOI: 10.1177/1042258718792290
• Zucchella, A., Hagen, B., & Serapio, M. (2018). International Entrepreneurship. Edward Elgar.

Identifiers

DOI

10.17512/znpcz.2024.1.02

Biblioteka Nauki

40678233