Effectuation, causation and the revised uppsala model: A behavioral analysis of Iranian SMEs’ internationalization

Abstract

This study examines the boundary conditions of the emerging international entrepreneurship theories in explaining the internationalization of firms in the novel context of Iran. For this purpose, the alternate template strategy is employed to assess the extent to which the behaviors undertaken by the Iranian Small and Medium Enterprises (SMEs) to enter international markets are consistent with the emerging theories of international entrepreneurship, namely causation, effectuation and the revised Uppsala model. Our multiple case study approach indicates that behaviours suggested by the similar theories of effectuation and revised Uppsala model are dominant among the cases; yet when firms perceive lower level of uncertainty in a market or are not faced with the lack of resource availability, they show causal behaviour. These results provide a better understanding of the process of SMEs’ internationalization in developing countries.