Introduction
International new venture creation
International new venture creation as a process
Causation | Effectuation | |
---|---|---|
Goals are … | Pre-defined | Emerging |
Decision parameters include … | Maximization of expected return | Affordable loss |
Dealing with uncertain future through … | Business planning and competitive analysis | Pre-commitment and alliances |
Exploitation of … | Capabilities and resources | Environmental contingencies |
Causation- and effectuation-based approaches to international new venture creation
A process model of causation and effectuation in INVC in SME
Illustrating the model
Antecedents to causation– or effectuation-based INVC
Entry mode selection of causation- and effectuation-based INVC
Method
Sample
Operationalization
Antecedents
Process variables: Causation and effectuation
Dependent variable
Method of analysis
Results
Antecedents to causation and effectuation
Causation | Effectuation | |
---|---|---|
Constant | ||
Age of firm (year of foundation) | .006 (.586) | .038 (.768) |
Size (turnover mio. Euro) | .019 (.658) | .122 (.179) |
Psychic distance | .525 (.000)*** | .188 (.231) |
Dynamism—technical | −.035 (.758) | .223 (.093)* |
Dynamism—general | .159 (.220) | .199 (.177) |
International experience | −.391 (.000)*** | .243 (.089)* |
Internationalization experience | .120 (.320) | .292 (.042)** |
R
2 = .480*** |
R
2 = .152, n.s. | |
df = 65 |
df = 64 | |
F = 4.205 |
F = 1.156 |
Ia:C. | Ib:E. | Ic:C. | Id:E. | IIa:C | IIb:E | IIc. C | IId:E | IIIa:C | IIIb:E | IIIc:C | IIId:E | |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Constant | ||||||||||||
Age of firm | −.013 (.667) | −.008 (.836) | .001 (.932) | .023 (.665) | −.024 (.663) | .015 (.884) | .035 (533) | .003 (.976) | .003 (.976) | .043 (.424) | .010 (.722) | −.007 (.672) |
Size | .037 (.779) | .165 (.276) | .017 (.599) | .116 (.262) | .065 (.578) | .158 (.324) | .022 (.687) | .118 (277) | −.003 (.902) | .160 (.243) | .020 (.701) | .107 (.252) |
PD | .487 (.000)**** | .096 (.349) | .542 (.000)**** | .185 (274) | .404 (.003)*** | .093 (.594) | .493 (.000)**** | .227 (.211) | .561 (.000)**** | .124 (.301) | .516 (.000)**** | .278 (.062)* |
DT | .011 (.763) | .333 (.024)** | −.026 (.691) | .253 (.087)* | .002 (.993) | .252 (.084)* | −.035 (.569) | .223 (.288)* | −.061 (.481) | .269 (.047)** | −.041 (.554) | .290 (.047)** |
DG | .168 (.245) | .221 (.105) | .153 (.303) | .181 (.323) | .160 (.212) | .200 (.132) | .172 (.332) | .182 (.309) | .158 (.311) | .201 (.288) | .152 (.300) | .273 (.071)** |
International experience | −400 (.000)**** | .221 (.093)* | −.398(.000)**** | .222 (.091)* | −.333(.003)*** | .289 (.047)** | −.384(.000)**** | .234 (.075)* | −.327(.004)*** | .130 (.305) | −.390(.000)**** | .223 (.084)* |
Internationalization experience | .136 (.232) | .331 (.042)** | .121 (.288) | .293 (.047)** | .158 (.231) | .322 (.029)** | .183 (.062)* | .216 (4.32) | .116 (.370) | .300 (.040)** | .115 (.287) | .353 (.003)*** |
PD × international experience | .136 (.233) | .328 (.041)** | ||||||||||
PD × internationalization experience | −.048 (.722) | −.158 (.259) | ||||||||||
DT × international experience | −.293 (.033)** | −.231 (.104) | ||||||||||
DT × internationalization experience | .168 (.198) | −.205 (.103) | ||||||||||
DG × international experience | .141 (.265) | −.244 (.092)* | ||||||||||
DG × internationalization experience | −.023 (.410) | .254 (.088)* | ||||||||||
R
2 = .493**** |
R
2 = .233** |
R
2 = .482**** |
R
2 = .181 |
R
2 = .538**** |
R
2 = .193 |
R
2 = .503**** |
R
2 = .191 |
R
2 = .494**** |
R
2 = .199 |
R
2 = .503**** |
R
2 = .191 | |
df = 65 |
df = 64 |
df = 65 |
df = 64 |
df = 64 |
df = 64 |
df = 64 |
df = 64 |
df = 64 |
df = 64 |
df = 64 |
df = 64 | |
F = 3.994 |
F = 2.304 |
F = 3.935 |
F = 1.301 |
F = 4.103 |
F = 1.419 |
F = 3.995 |
F = 1.416 |
F = .3993 |
F = 1.422 |
F = 3.995 |
F = 1.419 |
Effects of causation and effectuation on EMS
B
| S.E. | |
---|---|---|
Age of firm (year of foundation) | .021 | .014 |
Size (turnover mio. Euro) | .002 | .001 |
Psychic distance | −.532 | .459 |
Dynamism—technical | .416 | .380 |
Dynamism—general | −.435 | .385 |
International experience | .009 | .035 |
Internationalization experience | −.061 | .047 |
Causation | −1.514 | .565** |
Effectuation | .216 | .240 |
Discussion and conclusion
Discussion
Expected | Result | |||
---|---|---|---|---|
H1a | Psychic distance—effectuation | ↑ | n.s. | Not confirmed |
H1b | Psychic distance—causation | ↓ | ↑ | |
H2a | Dynamism—effectuation | ↑ | ↑ | Partially confirmed |
H2b | Dynamism—causation | ↓ | n.s. | |
H3a | International experience—effectuation | ↑ | ↑ | Confirmed |
H3b | International experience—causation | ↓ | ↓ | |
H4a | Internationalization experience—effectuation | ↑ | n.s. | Partially confirmed |
H4b | Internationalization experience—causation | ↓ | ↓ | |
H5a | Experience × dynamism: effectuation | + | (+) | Partially confirmed |
H5b | Experience × dynamism: causation | − | (−) | |
H6a | Effectuation—export | ↑ | n.s. | Not confirmed |
H6b | Causation—equity involvement | ↑ | ↓ |