Abstract
This paper explores the role of heuristics (specifically availability and representativeness) and decision rationality in international business entry mode choice, and how their interaction influences decision effectiveness and subsequent international performance. Following the core premise of dual process theories, the study hypothesizes relationships between heuristics, decision rationality, decision effectiveness, and international performance. Using a quantitative survey-based approach, it measures the application of heuristics in decision making. The study evidences that managers can strategically exploit availability heuristics in conjunction with analytic, rational decision-making approaches to improve the effectiveness of their internationalization decisions. However, the combination of analytic decision model with representativeness heuristics can compromise decision effectiveness. The findings offer crucial insights for managers operating in global environments, underscoring the value of integrating heuristic and analytic strategies in the decision-making process for international market entry. Extending the dual-process theories in international business, this study enriches our understanding of the cognitive strategies behind entry mode choice and their bearings on overall business performance.
| Original language | English |
|---|---|
| Title of host publication | 49th Conference of the European International Business Academy : The Changing Global Power Balance: Challenges for European Firms |
| Publication date | 2023 |
| Publication status | Published - 2023 |
| MoE publication type | A4 Article in conference proceedings |
| Event | Conference of the European International Business Academy (EIBA): The Changing Global Power Balance: Challenges for European Firms - Lisbon School of Economics & Management of University of Lisbon, Lisbon, Portugal Duration: 15.12.2023 → 17.12.2023 https://eiba2023.eiba.org/ |
Keywords
- 512 Business and Management
