Effectuation Network Relationship Vis-A-Vis Causation Network Relationship: A Study from High-Tech SMES in Malaysia

The aim of this paper is to enhance the understanding of high technology Small and Medium (SME) internationalisation by looking at initial international opportunity discovery process using effectuation theory. Drawing from the effectuation theory, we examine the extent to which different types of network relationships and individual cultural differences impacts the process of international opportunity discovery in Malaysia. Multiple case analysis were used to explore to see the effectiveness of different forms of network relationships and compare the effectuation approach with the causation approach. The result shows that the SMEs entrepreneurs tend to follow effectuation rather than causation at the initial stage of their internationalisation particularly in their opportunity discovery process. Their initial relationship with co-partners such as friends and local communities allowed them to enter the international market in a short time. This study contributes to the field in several ways. First, it provides an empirical research from developing country perspective which remained unexplored. Second, it provides a clear explanation about key antecedents under the effectuation theoretical lens and adequate investigation for the rise of the phenomenon. Pages 289 to 306