When do domestic networks cause accelerated internationalization under different decision-making logic?: Evidence from weak institutional environment

• Published in: European business review 2020-01, Vol.32 (2), p.227-256
• Main Authors: Gil-Barragan, Juan M., Belso-Martínez, José A., Mas-Verdú, Francisco
• Format: Article
• Language: English
• Subjects: Causality; Decision making; Developing countries; Globalization; LDCs; Sales; Variables
• ISSN: 0955-534X; 1758-7107
• DOI: 10.1108/EBR-11-2018-0191

PurposeGiven the unresolved question about which causal conditions contribute to accelerated internationalization among small and medium enterprises (SMEs) from weak institutional environment, this paper aims to combine theoretically relevant antecedents of domestic networks relationships (weak or strong domestic ties) and decision-making logic (effectuation or causation) to explore the configurations that are the most promising for explaining accelerated internationalization.Design/methodology/approachThis study uses fuzzy-set qualitative comparative analysis (fsQCA) to examine the accelerated internationalization of 33 contrarian cases of SMEs located in weak institutional environment. The data set has been collected through in-depth interviews with managers in Colombia (21 cases) and Peru (12 cases). Building on the findings, an integrative model for accelerated internationalization is presented.FindingsThe authors found that the combination of weak domestic ties and effectuation logic accelerated the internationalization of SMEs with fewer resource constraints. In contrast, strong domestic ties and causation behavior lead to accelerated internationalization of SMEs with greater resource constraints. They propose a model to help enrich the existing literature about the causal configurations for achieving accelerated internationalization in SMEs from weak institutional environment.Originality/valueThe contribution of this study is to provide empirical evidence to address three shortcomings in the literature. First, the mixed results regarding the impact of strong and weak domestic ties and decision-making logic in the accelerated internationalization of SMEs; second, the limited research on domestic networks; and third, the scarce investigation in weak institutional environment, where the emphasis on constrained resources is higher.