The Role of Munificence-Hostility on Decision-making Logic of Internationalizing SMEs: A Comparative Study

The study identifies and examines patterns in decision-making logics in the context of SME’s internationalisation in munificent-hostile business environments. The study adopts a process approach to case study research, by examining 169 internationalisation decision events in four SMEs in two emerging economies; Qatar and Egypt. The study establishes that decision-makers employ hybrid decision-making logics and shift from one dominant logic to another. The shifts are explained by identifying the role of munificence-hostility in shaping SME’s resource positions. We move beyond the classical convention that effectuation is a proactive and emergent way of dealing with uncertain environments and advance a hybrid perspective of causal and effectual logics in SME internationalisation decision-making. The study broadens current understandings on the drivers of effectuation and causation beyond the classical view which associates effectual decision-making logic to uncertainty and prior entrepreneurial experiences and provides grounded propositions for further empirical testing.