A1 Journal article (refereed), original research

The Interplay of Effectuation and Causation in Decision Making: Russian SMEs under Institutional Uncertainty


LUT Authors / Editors

Publication Details
Authors: Laine Igor, Galkina Tamara
Publisher: Springer Verlag (Germany)
Publication year: 2017
Language: English
Related Journal or Series Information: International Entrepreneurship and Management Journal
Volume number: 13
Issue number: 3
Start page: 905
End page: 941
Number of pages: 37
ISSN: 1554-7191
JUFO-Level of this publication: 1
Open Access: Not an Open Access publication

Abstract
The institutional context of Russia and the recent regime of foreign trade sanctionsmakes it a natural laboratory to study change in decision making regarding theinternational activities of SMEs. This research explores how the increased institutionaluncertainty is evaluated, enacted and responded to by SMEs that are heavily involvedin relations with international suppliers. This longitudinal multiple-case study revealsthat although firms simultaneously use both causation and effectuation in their decisionmaking, an increase of institutional uncertainty boosts effectuation. The study showsthat the intensity of both types of decision-making logic varies along the studied periodin accordance to changing perceptions of institutional uncertainty. Also, the studiedfirms use effectuation logic differently enabling us to distinguish two types ofeffectuation with contrasting performance implications: opportunity-driven effectuationand survival effectuation.

Last updated on 2018-19-10 at 07:55