Entrepreneurial Logics in International Entry Mode Decisions

Abstract

The aim of this paper is, through a two-staged literature review, to identify the role and impact of causation, effectuation, and bricolage logics during internationalization and, in particular, in entry-mode choice. The results show that entrepreneurs in their internationalization decisions can follow one, a combination, or a sequence of logics depending on the venture's or its international lifecycle and experience, the (perceptions of) internal and external context, and network relations. Likewise, entry modes such as JVs, strategic alliances, and export can be driven by different logics or their combination, while foreign direct investment is predominantly driven by causation logic. Bricolage has received little attention in extant work and, thus, is a future avenue for research. Research, although growing in importance, falls short of longitudinal studies, which are necessary to identify shifts, and, importantly, performance consequences of different decision-making logics.