مطالعات مدیریت راهبردی (Sep 2023)
The impact of effectuation decision-making on internationalization speed with the effect of environmental uncertainty
Abstract
Introduction: The concept of "speed" becomes very important in internationalization literature. Internationalization is a time-based process of entrepreneurial behavior. Hence, entrepreneurs who turn to effective logic tend to develop a new network that helps them quickly enter the international market. Internationalization is one of the methods through which companies can enjoy the benefits of operating in the international market. In other words, Firms using causal logic tend to learn faster about international markets than firms using effective logic. The internationalization process of Export companies is determined by the factors relevant to the entrepreneur’s internal decision-making dynamic as well as by external environment-specific factors. International entrepreneurs’ selection of effectuation decision-making logic may impact the speed at which he makes foreign market entry outside the domestic market. Moreover, the uncertainty in the environment causes entrepreneurs to adopt effectuation logic. The purpose of this study was to investigate the effect of effectuation decision-making on internationalization speed with the moderating effect of environmental uncertainty.Methodology: In the present study, the survey method was used to collect data, and the correlation method was used for data analysis. The statistical population of this research was all active export companies in Urmia city, the number of which was 349 companies. According to the sample size from the Morgan table, 185 companies were selected by simple random sampling. The research is a descriptive survey in terms of research method and in the category of correlation research and in terms of data collection method is field method (questionnaire). Data were analyzed using SPSS version 23 and SMART-PLS version 2 software. First, the normality of the variables was checked through the Kolmogorov-Smirnov (K-S) test. Considering that some variables were non-normal, the PLS method was used to model structural equations. It should be noted that the questionnaire of this research consists of two parts. The first part includes demographic questions and the second part includes the main questions of the questionnaire. Also, the sample of the current research was 185 export companies, and 1 questionnaire was completed and collected in each company by its managers.Results and Discussion: The results indicate that effectuation decision-making has a positive and significant effect on internationalization speed and also environmental uncertainty has a positive and significant moderating effect on the relationship between effectuation decision-making and internationalization speed. Also, the results of the descriptive analysis of the respondents' data show that among the 185 respondents, 168 (91%) are men and 17 (9%) are women. Also, the frequency distributions of the respondents according to their age, people under 30 years were 21%, 30 to 40 years 38%, 41 to 50 years 22% and 51 years and above 17%. On the other hand, considering that the appropriate criterion for Cronbach's alpha and composite reliability is 0.7 and for convergent validity is 0.5, according to the findings, all these criteria about endogenous variables have obtained the appropriate value, so it can be it confirmed the appropriateness of the reliability and convergent validity of the present study.Conclusion: It shown that effective decision-making has an effect on the speed of internationalization in export companies. Effectiveness is a thriving concept in decision logic and has recently been increasingly used to develop frameworks to explain internationalization. The findings have shown the positive role of decision-making logic in accelerating or increasing the speed of entering international markets. Introducing internationalization speed into the effectiveness literature is a valuable and enlightening addition to the literature, as very few studies have dealt with such perspectives. Previous studies have mainly been conducted with qualitative studies and case study methods, as well as conceptual papers focusing on effectiveness in the context of internationalization. The faster the managers of exporting companies can adapt their organizational structures and processes according to international standards, the faster they can enter international markets. Therefore, the degree of uncertainty about international markets is an important moderator for the realization of the initial entry process. Therefore, it can be claimed that uncertainty in interaction with effective decision making logic helps the rapid internationalization of the company. In fact, an entrepreneur can adapt to these risks and uncertainties through effectiveness decisions. The faster the entrepreneur can adapt his organizational structures and processes according to international standards, the faster the entrepreneur can enter the international market. Therefore, the level of uncertainty about foreign markets is an important moderating factor in the entrepreneur's tendency to allocate resources to fulfill the initial entry process. Therefore, it can be said that uncertainty in interaction with effective decision-making logic helps the rapid internationalization of export companies.
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