Title: Inclination for internationalisation - a key driver to explain the speed of international market entry through the moderation of effectuation decision logic: a study on small and medium software firms of Bangladesh

Authors: Imtiaz Masroor; Md. Nur Alam; Khan Abdullah Adnan; Israt Jahan

Addresses: Department of Business Administration, Northern University of Business and Technology Khulna, 41-42, Akunjee Tower, Majid Sarani, Khulna, Bangladesh ' Business Administration Discipline, Management and Business Administration School, Khulna University, Khulna, Bangladesh ' Banglalink Digital Communications Ltd., Tigers Den, Gulshan – 1, Dhaka, Bangladesh ' Foreign Exchange Policy Department, Bangladesh Bank, Khulna, Bangladesh

Abstract: Inclination for internationalisation refers to the extent to which the entrepreneurs intend to expand business in international market which has an impact on the entry speed to the international market. Behavioural intent usually leads the entrepreneur to take real action which is also affected by the decision-making approach taken by the entrepreneurs. Moreover, the interplay between behavioural intent and speed of internationalisation can be moderated by the decision-making approach as it helps entrepreneurs to process the information. The purpose of this paper is to capture the complex interplay among the inclination to internationalise, internationalisation speed and effectuation. The data of the study were collected through a structured questionnaire from 150 IT entrepreneurs of Bangladesh which selected using non-probability convenient and judgmental sampling during April-June 2016. Structural equation modelling (SEM) has been used to find the relationship between constructs. The study result has showed a positive association between inclination for internationalisation and internationalisation speed. The study has also showed significant moderating impact of the effectuation decision-making approach on the relationship between the inclination for internationalisation and internationalisation speed. Effectuation decision approach positively moderates the relationship between the inclination for internationalisation and internationalisation speed.

Keywords: inclination for internationalisation; effectuation; PLSSEM; internationalisation speed; decision-making approach.

DOI: 10.1504/JIBED.2020.106191

Journal for International Business and Entrepreneurship Development, 2020 Vol.12 No.2/3, pp.183 - 198

Received: 24 Aug 2019
Accepted: 24 Aug 2019
Published online: 01 Apr 2020 *

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