Analysing the decision approach of the SME entrepreneurs relating to internationalisation of firms: the study of Kenyan SME entrepreneurs
Journal of Research in Marketing and Entrepreneurship
ISSN: 1471-5201
Article publication date: 22 June 2023
Issue publication date: 2 January 2024
Abstract
Purpose
The purpose of this study is to analyse the internationalisation decision-making process using causation and effectuation.
Design/methodology/approach
The proposed hypotheses are tested with a survey data set of 148 Kenyan small and medium-sized enterprises (SMEs) to assess the pre-internationalisation decision-making of the firm. Multinomial logistic regression has been used to predict the categories from total effectuation to total causation.
Findings
The results of this study show that firm resources and capability provide a solid basis for firms' internationalisation. The entrepreneur becomes more effectual commence as they assess the firm's resource and capability. Entrepreneurs with a high entrepreneurial self-efficacy use both causation and effectuation with a bias towards effectuation. Increasing environmental predictability led the firms to use less effectuation, and increasing psychic distance entails high effectuation relative to high causation in the Kenyan context.
Research limitations/implications
The sample choice of the category is Kenyan SMEs which may raise some questions. This study assumed that SMEs sampled had the same level of internationalisation experience regardless of the number of years in business.
Originality/value
This study theoretically advances the field of international business by combining the Uppsala internationalisation model with effectuation; this study defines four antecedents of decision-making to form its conceptual framework to study internationalisation decision-making approach for SMEs using the effectuation logic and adds to the stream of literature that has reviewed the factors that influence the internationalisation decision-making process for SMEs in developing countries.
Keywords
Acknowledgements
Erratum: It has come to the attention of the publisher that the article, Nabi, M.N.U., Nyaoro, B. and Zohora, F.T. (2023), “Analysing the decision approach of the SME entrepreneurs relating to internationalisation of firms: the study of Kenyan SME entrepreneurs title revised”, Journal of Research in Marketing and Entrepreneurship, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JRME-05-2021-0057, was published with an incorrect title. This error was introduced in the production process and has now been corrected in the online version. The publisher sincerely apologises for this error and for any inconvenience caused.
Citation
Nabi, M.N.U., Nyaoro, B. and Zohora, F.T. (2024), "Analysing the decision approach of the SME entrepreneurs relating to internationalisation of firms: the study of Kenyan SME entrepreneurs", Journal of Research in Marketing and Entrepreneurship, Vol. 26 No. 1, pp. 140-162. https://doi.org/10.1108/JRME-05-2021-0057
Publisher
:Emerald Publishing Limited
Copyright © 2023, Emerald Publishing Limited