Effectuation, domestic network strength, institutional voids and accelerated internationalizationevidence from latin american smes

Resumen

This thesis investigates the type of domestic network strength and type of decision-making logic as causal conditions for achieving accelerated internationalisation in small and medium enterprises (SMEs) located in context of institutional voids. Furthermore, this dissertation explore the micro-mechanisms that connect the impact institutional voids, effectual networking and networks strength on the accelerated internationalisation of SMEs from Latin America. The existing literature shows discrepancies among researchers about the individual effect of networks strength, decision-making logic and institutional voids on accelerated internationalisation. Moreover, scholars argue that accelerated internationalization is a complex phenomenon that should be studied by identifying the complex relations among variables. However, it seems that no studies have explore this complex interaction and the connection among these factors. Consequently, researchers advise to increase the investigation about the effects of these variables on the accelerated internationalisation of SMEs. They have also suggest to incorporate effectuation and institutional voids to clarify these discrepancies. On this matter, researches warn that research on effectuation and internationalization is an emerging scientific field that lacks conceptual clarity. Recent studies also advice to move beyond foreign networks to explore the role of domestic networks on accelerated internationalization. Finally, there have been calls to advance research on Latin America that usually has been neglected in the existing literature. Therefore, this thesis aims to provide an approach based on three different methodologies: First, a bibliometric analysis to contribute to classify the literature of effectuation and internationalization, and identify its structure and key trends. Second, a fuzzy-set qualitative comparative analysis (fsQCA) to investigates which causal conditions contribute to accelerated internationalization among 33 contrarian cases (21 from Colombia and 12 from Peru) of SMEs from context with institutional voids. Results show 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 behaviour lead to accelerated internationalization of SMEs with greater resource constraints. Based on these findings, an integrative model that linked the causal configurations to reach accelerated internationalization is developed. Finally, an ordered logistic regression of 2.987 SMEs from Argentina, Colombia and Peru, to examine the micro-mechanisms that connect institutional voids, effectual networking, networks strength and location on the accelerated internationalisation of SMEs from Latin America. Results show that (1) rural cities, instead of first- and second-tier cities, accelerated the internationalization process of the firm. (2) Institutional voids, effectual networks and strong local ties increase the likelihood of accelerated internationalization. Finally, (3) we found a robust and high interaction effect between effectual networking, significant institutional voids, strong local ties, size of the firm and rural cities location on accelerated internationalization. Based on the findings, a conceptual model is presented.