Entrepreneurial orientation and international opportunity development by SMEs: The mediating role of decision-making logic

Abstract

Research on international entrepreneurship has studied entrepreneurial orientation’s influence on the international performance of small and medium-sized firms (SMEs), but scholars need to learn more about the mechanisms that allow a firm to translate its entrepreneurial orientation into new opportunities to enter foreign markets. In this study, we employ effectuation theory to investigate this association and to enhance the understanding of international opportunity development by resource-poor SMEs. Our analysis of 164 SMEs in New Zealand supported the mediating role of effectual and causal decision-making logics in the association between entrepreneurial orientation and international opportunity. Our study contributes to the literature on international entrepreneurship and entrepreneurial orientation and helps SMEs to successfully translate their entrepreneurial orientation to foreign market entries.

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