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2022 | Book

The International Dimension of Entrepreneurial Decision-Making

Cultures, Contexts, and Behaviours

Editors: Andrea Caputo, Dr. Massimiliano M. Pellegrini, Marina Dabić, Prof. Léo-Paul Dana

Publisher: Springer International Publishing

Book Series: Contributions to Management Science

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About this book

This book focuses on understanding the international behaviours of SMEs, entrepreneurial ventures, and entrepreneurs. The collection of contributions gathered in the book highlights the importance of cultures, contexts and behaviours that pertain to the international entrepreneurship arena. The respective chapters address topics such as entrepreneurial cognition, international entrepreneurial ecosystems, innovation, international market entry decisions, family SMEs, international human resources management, cross-cultural and indigenous entrepreneurship, social capital and sustainability in international markets. All contributions are based on the latest empirical and theoretical research, and provide key findings and concrete recommendations for scholars, entrepreneurs, organizations and policy makers.

Table of Contents

Frontmatter
Introduction to The International Dimension of Entrepreneurial Decision-Making: Cultures, Contexts, and Behaviours
Abstract
This chapter introduces the content of the book, presenting the key insights from the contributed chapters. The book comprises 11 diverse and insightful contributions from nine different countries.
Andrea Caputo, Massimiliano M. Pellegrini, Marina Dabić, Léo-Paul Dana
Revitalizing the ‘International’ in International Entrepreneurship: The Promise of Culture and Cognition
Abstract
International entrepreneurship (IE) has emerged as its own domain—born out of the intersection of international business and entrepreneurship research. This fusion of disciplines has provided considerable value for international business by expanding its traditional focus beyond corporations to include new ventures. However, following an early period of rapid growth, evidence herein suggests that IEs impact and contributions have begun to wane. Through our analysis, we contend that there is a restrictive interpretation of what ‘international’ represents: cross-border dynamics are chiefly interpreted to mean geographic contexts for new venture outcomes. While valuable, this niche is limiting and leaves many of the foundational questions in entrepreneurship untouched. We argue that a shift in the directional focus of IE is required: to include intercultural dynamics as antecedents to entrepreneurial action, both international and domestic. Further, we discuss how adopting a broader international lens, used through management, can foster valuable insights from domains such as cross-cultural psychology and international organizational behaviour. This chapter outlines a research agenda for investigating how intercultural constructs underpinning cross-border dynamics influence the discovery, enactment, evaluation, and exploitation of opportunities at large.
Robert J. Pidduck, Daniel R. Clark, Lowell W. Busenitz
Uncovering Entrepreneurial Belief Systems Through Cognitive Causal Mapping
Abstract
This chapter discusses the grounds and methods of studying the knowledge structures (aka belief systems, cognitive maps, mental models) that underlie and guide entrepreneurs’ and entrepreneurial actors’ perceptions, intentions, decision-making and performance. Current entrepreneurial cognition research (ECR), largely emulating cognitive psychology, tends to emphasise individual cognitive processes, studying how entrepreneurs in general think and solve problems. This is important but underemphasises the also essential questions of what specific entrepreneurs know and think (or ignore); the contents, formation, relevance and consequences of their knowledge and beliefs. This chapter discusses some basic issues of cognition and the conditions of empirically studying knowledge or beliefs. It also presents an accessible and established method, cognitive comparative causal mapping (CCM), for revealing and analysing entrepreneurs’ and entrepreneurial actors’ belief systems, demonstrating it in the case of nascent micro entrepreneurs and small business advisors. In international entrepreneurship research, this approach facilitates, e.g., tracking the evolution of entrepreneurs’ thinking during internationalisation or comparing their belief systems in different cross-cultural or cross-national contexts. Such research is supported by CMAP3, a CCM specific software, by enabling studies where the data, such as interviews, use different languages, the coding and reporting a standard language like English.
Mauri Laukkanen, Francisco Liñán
International Entrepreneurial Ecosystem, Knowledge Exploitation and Innovation: Case of International Pharma-Biotech SME
Abstract
Although the literature has generally well defined the actors and their roles within international entrepreneurial ecosystems, more insight is needed on how SMEs fit into these networks and use them to broaden their knowledge exploitation frontiers and leverage their international innovation. This study draws upon knowledge-based theory and an international perspective on entrepreneurship and entrepreneurial ecosystems to examine how collaboration between actors within an international entrepreneurial ecosystem (IEE) stimulates knowledge exploitation and, consequently, the success of international SME innovation and commercialization. To this end, we examined an international pharma-biotech SME and collected primary data from in-depth interviews with its top management team and triangulated the interview data with secondary data. The study was initiated before the onset of the COVID-19 pandemic and continued 11 months after. Our research findings contribute to the theory that the diversity of an IEE’s actors and the intensity of collaboration between them are fundamental to the dynamics of scientific, technological, market, and institutional knowledge exploitation and to international innovation success. Further, the dynamics of this knowledge exploitation can support the development of business agility, that is, adapting quickly and efficiently—and even gaining an advantage in pursuing new opportunities—in turbulent context such as the COVID-19 pandemic.
Naïma Cherchem, Christian Keen
Ignorance and International Entrepreneurship. Two Sides of a Blade in the Decision to Enter a Foreign Market
Abstract
The aim of this chapter is to further explore and understand the role of a topic seldom discussed so far in the decision to enter a foreign market for entrepreneurs, namely ignorance. Rather than providing an extensive literature review of the topic, we will explore why entrepreneurship scholars so far neglected the topic of how entrepreneurs, and their firms, “don’t know.” Specifically, this chapter will be focused on the entrepreneur as an individual when making the decision to enter a foreign market. Throughout this chapter, we shall analyze ignorance from different perspectives when foreign entry decisions on an individual level have to be made. We will discuss that widespread international knowledge may not naturally advance International Entrepreneurship opportunities, point out the idea that individual decisions are cognitively influenced by ignorance, and point to the relevance of knowing what you do not know in IE. Finally, the chapter calls for an integration of ignorance within the decision-making framework in IE.
Bob Bastian, Antonella Zucchella
Risk or Opportunity? Exploring the Relationship Between Entrepreneurial Decision and the Use of Equity Crowdfunding Campaigns in Less- and Well-Developed Regions in Italy
Abstract
Entrepreneurial decision-making is a complex area that impacts the creation and development of new ventures and is one of the main subjects of entrepreneurial research. Our study focuses on the impact of regional disparities on the entrepreneurial decision-making process regarding the adoption of alternative funding sources such as crowdfunding. Crowdfunding has recently garnered considerable interest because of its ability to “democratize” access to capital. Using a least-squares method (OLS) and inferential t-test statistics, we analyze how the entrepreneurial decision-making process differs across Italian regions on the adoption of equity crowdfunding campaigns as fundraising tools. Our results show that regional disparities matter in the entrepreneur’s decision-making process, pushing it towards alternative tools such as crowdfunding. Overall, we provide evidence that crowdfunding has gained prominence in Italy in recent years and may be a viable option for entrepreneurs operating in less developed regions to bridge the traditional regional disparity gap.
Simona Leonelli, Filippo Marchesani, Francesca Masciarelli
The Internationalization of Family SMEs: A Literature Review and Research Agenda
Abstract
The chapter intends to stimulate a debate on the internationalization processes of small and medium-sized family businesses (family SMEs), which is a specific topic that business literature has only recently deepened. Several research works are dealing with internationalization strategies, but only a few studies focus on SMEs’ internationalization. The chapter aims to discuss the state of the art of the field, which seems to be increasingly explored by academics. Our focus was to identify the factors which can positively or negatively impact SMEs’ internationalization processes. Moreover, we intend to fill the research gap in terms of literature review on the field. The methodology is based on a systematic literature review regarding 29 articles published in the last two decades, whilst most of them are written in more recent years. The study discusses background theories and key contributions of the field. A part of the findings unanimously suggests that there are factors that positively (or negatively) impact SMEs’ degree of internationalization (DOI), instead, the effect of other determinants seems to be controversial, and should be better examined by future research works. Consequently, we then propose a research agenda to identify research gaps that should be explored.
Franco Ernesto Rubino, Claudio Multari, Giuseppe Valenza
Internationalising HRM Framework for SMEs: Transcending High-Performance Organisation Theory’s Economic Utilitarianism Towards Humanism
Abstract
Previous Business and Management studies’ decades-long focus on an economic utilitarian approach has neglected human-centric issues such as staff and management resilience building and socio-cultural competence capacity in addressing SMEs’ performance-related challenges during internationalisation. Such prolonged omission in the debates has partially led to the wrong measures being adopted and SMEs’ unsustainability when they trade across borders. By critiquing and applying High-Performance Organisation Theory’s characteristics of management planning, commitment, productivity, compliance and collaboration onto SMEs’ internationalisation, this chapter highlights the dual theory-practice gap of people-centric and economic barriers which have contributed to the fundamental management and staff performance challenges faced by SMEs. To contribute to both the SME internationalisation literature and resolve this gap, this chapter proposes an ‘Internationalising HRM’ framework consisting of four interdependent cardinal principles which highlight four aspects that are crucial in resolving SMEs’ internationalisation challenges, namely competency, R & TD, social and resilience capacity. Each of these aspects highlights what the economic utilitarian approach of HPO Theory has missed over the years and develops a framework that can help SMEs’ managers and decision-makers to address both the economic and human elements that are vital for a more sustainable SMEs’ internationalisation. The chapter also contributes to facilitating a more resilient SME internationalisation culture as it shifts the focus from economics to people given the increasing need for smaller firms’ member to develop sustainable resilience to perform in the longer term. This perspective is new and should be included in international HRM, Strategic HRM and SMEs’ entrepreneurship. Implications of the study’s findings, its framework and future research areas are highlighted.
John Mendy
Cross-cultural Tribes, Community and Indigenous Entrepreneurship
Abstract
This chapter distinguishes between “clan entrepreneurship”, “kindred entrepreneurship”, “tribal entrepreneurship”, “community entrepreneurship” and nomadic entrepreneurship” within the broader theory of indigenous entrepreneurship. Using the case study of West African popular tribes of Igbo, Fulani, Hausa, and Yoruba, the unique cultural and indigenous elements of entrepreneurial behaviours have been examined and compared to advance indigenous entrepreneurship theories. The findings reveal that indigenous people have motives or drives for entrepreneurship, risk-taking, wealth-seeking and entrepreneurial learning that develop through indigenous cultures similar to modern entrepreneurship behaviours.
Paul Agu Igwe
Sustainable Initiatives in International Markets
Abstract
This chapter makes a novel contribution analyzing the necessary actions in education to generate professionals who can propose, implement and manage sustainability initiatives in companies for global markets. Likewise, various examples of industries that have been implementing initiatives that contribute to sustainable development are presented; thus, the actions that are being developed in the hospitality industry are presented, mentioning the research results and the examples of the most important hotels in the world regarding their sustainability reports. The initiatives in the supply chain management with a sustainable approach are also presented, mentioning its link with industry 4.0. Likewise, the components of sustainable transport were detailed, emphasizing sustainable ports and the use of electricity-based transport as an energy source. Finally, the sustainable plastic management strategies by some companies are mentioned.
Aldo Alvarez-Risco, Shyla Del-Aguila-Arcentales
Social Capital and the Morphogenesis of Actors: Lessons from International Social Entrepreneurs
Abstract
Social entrepreneurs tackle so far insufficiently addressed social and environmental challenges with the aim to create positive societal change. Numerous anecdotal and empirical cases underline the significant role played by personal or vicarious experience in identifying innovative ways of solving societal challenges. Against this background, international social entrepreneurs—social entrepreneurs who are foreigners in the country they set up their venture—pose an interesting conundrum that has so far not been sufficiently—if at all—addressed in the social entrepreneurship literature: how do social entrepreneurs navigate their new environment? By implementing morphogenetic and social capital theories, this chapter engages with illustrative examples from international social entrepreneurs operating in the Netherlands to develop a Social-Capital-Morphogenetic model, which serves to illuminate the role of social capital accumulation in navigating new environments. This chapter calls for greater emphasis on complexity and the systems level in further social entrepreneurship research to draw attention to the contextual complexities of social change and the implications of these complexities on the social entrepreneurship process.
Emilio Costales, Anica Zeyen
Determinants of the Internationalisation Process of Colombian Firms
Abstract
Internationalisation is recognised as a fundamental strategy for the sustainability of firms in an increasingly globalised environment. However, this is a complex process that requires to develop internal capabilities. Despite its importance, evidence of internationalisation processes in emerging countries is scarce. In that sense, the objective of this study is to analyse the determinants of the internationalisation process in Colombia. For the purposes of this study, the sample is made up of Colombians who responded to the 2015 GEM Adult Population Survey (APS). Our results indicate that the decision to internationalise is associated with ease of doing business, reference models and public media about successful new businesses.
Vanessa Pertuz, Luis Francisco Miranda, Arturo Charris-Fontanilla, Javier Viloria Escobar
Metadata
Title
The International Dimension of Entrepreneurial Decision-Making
Editors
Andrea Caputo
Dr. Massimiliano M. Pellegrini
Marina Dabić
Prof. Léo-Paul Dana
Copyright Year
2022
Electronic ISBN
978-3-030-85950-3
Print ISBN
978-3-030-85949-7
DOI
https://doi.org/10.1007/978-3-030-85950-3

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