Entrepreneurial international decision-making in conditions of high uncertainty and goal ambiguity: an effectuation point of view

For the entrepreneurs of Small-Medium Enterprises (SMEs) international context is often characterized by high level of uncertainty and goal ambiguity. In other words, the information available is limited, the international experience is scarce and the future is not predictable and the entrepreneurs operate without a clear and precise plan of action. In such a context, we study the entrepreneurial decision-making that guides SMEs‘ internationalization. By analysing five case studies, we found evidence that through Effectuation lens we are able to explain what would be considered irrational behaviour of the entrepreneurs. Effectuation is a logic used by entrepreneurs to resolve problems in highly uncertain environments. Entrepreneurs can learn to think and act effectually, thus increasing the chances to perform successfully.By adopting an entrepreneurship theory (i.e. Effectuation) that embraces holistic perspective, the present work enhances the International Entrepreneurship theoretical apparatus.