My question is simple, how do you view decision making in SME who are in the process of internationalisation or has already passed the stage of internationalisation. Is there any difference compared to larger firms? Is sarasvathy ( 2001) right in her assumption that firms dealing with a high level of uncertainty often opt for an effectual logic?
I co- authored an article about this that can be found here:
https://www.researchgate.net/publication/343738656_The_shift_from_causation_to_effectuation_for_international_entrepreneurs_Attitudes_and_attitude_change_versus_social_representations_online_on_25092020_httpswwwabacademiesorgjournalsinternational-jour
Dear @Henrik G.S. Arvidsson, I agree with @Dag Bennett.
I also would like to say... irrespective of size, the willingness to take risk differs. Therefore, though important, size is not the only decision-making variable.
Having worked with SMEs and conmpanies in business incubators, the biggest difference I've seen is that the smaller firms, lacking the resources to do much sophisticated market screening/exploration/risk assessment/due diligence, tend to make instinctual or gut level decisions. In this, the thing they mainly pay attention to is the size and growth rate of the market. It is satisficing decision-making--it's not seen to be ideal, but can be effective.
Dear @Henrik G.S. Arvidsson, I agree with @Dag Bennett.
I also would like to say... irrespective of size, the willingness to take risk differs. Therefore, though important, size is not the only decision-making variable.
Catastrophic parameter can be also considered before taking any decisions related to SMEs and one must also consider the growth stage of SMEs too.
I worked in multinational companies, there the decisions are taken at top level, whereas SME, it is limited to a few people. They may be qualified to take decisions but lack accuracy. In the process of internationalization , they need to consider many factors ie cross country dimensions. It depends on the top management who govern the organization.
Making decisions in these organizations involves a high degree of risk and uncertainty. Therefore, it requires the formation of teams with various specializations that identify and study any project, obtain facts, identify problems and how to solve them before making any decision.
In Italy we face a big issue due to the governance. We have even "M" sized firms with the entrepreneur that decides. A huge problem is the lack of management culture and operations when we talk about internationalization.
The key area of difference between larger corporations and smaller enterprises is that additional expertise and data are available to larger firms. Smaller firms have to rely on entrepreneurial instincts and limited business advice. At the end of it strategy is not applied wholesomely, and the cost and profit consideration are paramount
La toma de decisiones en la PyMES a la plataforma internacional, seria buena cuando las medianas empresas involucren a las pequeñas empresas a aprovechar la oportunidad internacional, pienso que se tiene que agrupar y por rubros y ver las necesidades de sus productos en el mercado internacional y cerrar las brechas de los impedimentos, las fichas técnicas, las normas, garantías, y observar las normas del país origen
I would like to suggest that SMEs should know their strengths in financial and market competition before taking decision relating to internationalization of business. Although, such decision can be based on certain parameters like interest in joint venture, market expansion, technical know- how etc. But being an SME, it is advisable to involve nternational business analyst when taking such a great decision to avoid blunder due to limited business capacity.
I share the idea that making decisions in SMEs involves a high degree of risk and uncertainty, but on the other hand, I believe that these organizations have a higher level of flexibility and capability of focusing the right target when they analize their market. All of them, are able to do great efforts for improving the quality of their products and procceses and offenly, have a quick fit and answer to the international requirements.
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