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International network formation, home market institutional support and post-entry performance of international new ventures

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Version 2 2022-01-21, 15:26
Version 1 2021-12-17, 09:41
journal contribution
posted on 2022-01-21, 15:25 authored by Francis Donbesuur, Nadia Zahoor, Nathaniel Boso
Effectuation and causation decision-making logics are noted to be major alternative approaches to international network formation. However, knowledge is lacking on how and the conditions under which the two approaches contribute to post-entry performance of international new ventures (INVs). We integrate the theory of effectuation and institutional development logic to explain how effectuation and causation approaches to international network formation individually and jointly contribute to post-entry performance under varying conditions of home market institutional support. We test our proposed framework on primary data from 228 INVs in a sub-Saharan African economy. Results suggest that greater uses of both effectuation and causation approaches to international network formation are associated with stronger post-entry performance. More interestingly, results show that the joint effect of the two international network formation approaches on post-entry performance is amplified under conditions of low home market institutional support. Our findings provide theoretical and managerial insights on the importance of complementing effectual and causal reasoning in international network formation in weak home market institutional environments.

History

School

  • Business and Economics

Department

  • Business

Published in

International Business Review

Volume

31

Issue

3

Publisher

Elsevier

Version

  • AM (Accepted Manuscript)

Rights holder

© Crown. Published by Elsevier

Publisher statement

This paper was accepted for publication in the journal International Business Review and the definitive published version is available at https://doi.org/10.1016/j.ibusrev.2021.101968

Acceptance date

2021-12-15

Publication date

2021-12-23

Copyright date

2021

ISSN

0969-5931

Language

  • en

Depositor

Dr FRANCIS DONBESUUR. Deposit date: 16 December 2021

Article number

101968

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