Sales channel strategy decision-making in Finnish B2B born globals

Abstract

Recently, academics have raised interest on the decision-making logic of international entrepreneurial firms. Literature on the subject indicates that normal causation-based decision-making logic does not explain the decision-making of entrepreneurial firms, such as born globals, but a decision-making logic called effectuation is a more fitting theory for the logic behind their decision-making. Furthermore, traditional approach to marketing is not effective for these firms so they tend to engage in Entrepreneurial Marketing (EM) approach, which has a more innovative and network-based approach to marketing.

The relationship of dominant decision-making logic and sales channel strategy was investigated in three Finnish-based B2B born global firms. A theoretical framework to indicate the relationship between the decision-making logic and sales channel structure, and the relationship between decision-making logic and the level of EM in the sales channel strategy was built based on previous theory. Data for the empirical analysis was collected through semi structured interviews and company publications. Empirical data of each case company was cross-analyzed and the theoretical framework was revised.

The results show that the use of effectuation positively influences a higher level of EM in born global sales channel strategy. However, it was found out that the dominant decision-making logic does not affect the sales channel structure. Instead, a pattern of born global sales channel structure development was identified.