Clarice Zimmermann, Silvio Luis de Vasconcellos, Kadigia Faccin, Gerson Tontini and Ronaldo Couto Parente
We aim to explore the role of the interplay between intuition and rationality in the causation-effectuation decision-making processes of small creative businesses during their…
Abstract
Purpose
We aim to explore the role of the interplay between intuition and rationality in the causation-effectuation decision-making processes of small creative businesses during their international expansion.
Design/methodology/approach
We developed process research to investigate the causation-effectuation decision-making processes during the internationalization of a creativity-intensive small business located in Brazil. In just three years, its cartoon reached screens in 80 countries.
Findings
We discovered an orthogonal relationship between causation and effectuation moderated by the balance between intuition and rationality, enabling small creative businesses to successfully navigate internationalization by adapting to contractual demands and exploring creative opportunities. To explain these relationships, we offer five process-based propositions for further studies.
Research limitations/implications
We reconstructed the internationalization process based on retrospective interviews, so eliminating all biases from rationalization may have been impossible. We elucidate the interrelationship between causation-effectuation decision-making logic and demystify that decision-making effectuation logic is predominantly intuitive. We provide evidence that rational thinking permeates the entire decision-making process as a process of building the future.
Practical implications
Understanding causation-effectuation decision-making processes in creativity-intensive small businesses can be helpful for other businesses because they nurture production on a large scale.
Social implications
The study emphasizes the importance of creativity-intensive small businesses to countries’ economies. Creativity-intensive businesses grow in other industries and generate many jobs in mature industries.
Originality/value
We demystify the decision-making assumption that effectuation logic is predominantly intuitive while causation logic is rational. Instead, we show that these logics coexist and interact orthogonally and dynamically.
Details
Keywords
Jefferson Marlon Monticelli, Ivan Lapuente Garrido and Silvio Luis de Vasconcellos
The purpose of this study is to understand the role institutions play in driving the internationalization of firms in an emerging country through promotion of coopetition…
Abstract
Purpose
The purpose of this study is to understand the role institutions play in driving the internationalization of firms in an emerging country through promotion of coopetition. Investigating the relationships between coopetition, institutions and internationalization, especially among firms in emerging countries, is an important approach that has received little attention.
Design/methodology/approach
This study has used a single case study interviewing managers of Brazilian wineries and representatives of formal institutions in an emerging economy. A research framework taking an institutions-based view of strategy and applying it to study coopetition and internationalization is proposed.
Findings
Formal institutions are the most important players in the promotion of coopetition between firms in the Brazilian wine industry. Coopetition enables firms to access new resources and capabilities, promoting and facilitating internationalization, while also increasing firms’ competitiveness in the domestic market. The study also found evidence of certain limiting factors within these relationships, caused by the heterogeneous nature of the firms involved and by the asymmetries in their perceptions of the gains achieved.
Research limitations/implications
As a consequence of the methodology adopted, the results of this study are limited to the Brazilian wine industry. Future research should extend the approach to data collected in different countries and industries. Another promising avenue for research is to explore how decisions of a political nature influence the institutions that coordinate an industry, which would provide a new perspective on the internationalization of the firms involved.
Practical implications
The results offer governments and institutions an opportunity to better understand, and therefore to better manage, their actions in relation to their role in the promotion of the competitiveness of firms and industries, both in international and domestic markets. For firms, the results offer insights into the possible gains and the limitations of coopetition strategies, contributing to their decision-making on involvement. The study also contributes to understanding the competitiveness of the industry investigated.
Originality/value
This study approaches coopetition from the institutional perspective. It also focuses on internationalization of firms from an emerging country, which is characterized by a lack of firm-specific resources. The proposed framework seems promising for future research investigating coopetition and institutions within an integrated analytical framework.