Global Strategic Management and Entrepreneurship: Causation and Effectuation

This essay discusses the concept of global strategic management and entrepreneurship, focusing on the determinants of entrepreneurship such as creation, innovation, and distinction within business activities. It explores the two key elements of entrepreneurship, causation and effectuation, and how they impact the success of entrepreneurial ventures. The essay also discusses the importance of developing effective alliances, adopting innovative marketing and promotion strategies, and creating a participative and collaborative culture at the workplace. The essay concludes by highlighting the future of entrepreneurship and the role of advanced technology and networking approaches in shaping the success of businesses.

Global Strategic
Management

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Conclusion ......................................................................................................................................4
References .......................................................................................................................................5

INTRODUCTION
Global strategic management emerges from the collection of globalization along with the
implications of globalization on the world of corporate. The landscape of business have been
changed because of growth of globalization. Basically, globalization is defined as the expansion
of business operations across the country. It has been found that there are several issues which
are faced by the business organisations while performing their business operations globally as
the environment is found as dynamic by nature. It is necessary for the management of business
organisation to develop the effective strategics so that they can face the contemporary issues in
global business environment (Arvidsson, Coudounaris and Arvidsson 2020). This essay is based
on the discussion on the major points of entrepreneurship research led by the Sarasvathy in one
of the most enlightening article named as Causation and Effectuation. In addition to this, it also
deals with the development of new business ventures by comparing with the traditional model of
entrepreneurship with suitable examples.
MAIN BODY
Entrepreneurship is consider as the concept which have several determinants such as the
thought of creation, innovation and distinction within the business activities by offering goods
and services in market. It has been found that several of conflicts, debates and arguments arises
because of different point of view of business insiders. According to the aspect of Sarasvathy
(2001), there are two important key elements which assist as the base for establishing the
business ventures, unit and company. These factors include Causation and effectuation.
Causation is defined as the situation wherein the pre set consequence is given to an individual
and the individual is required to select the most suitable operator or base which they want to take
into consideration for performing their operations. Effectuation is defined as a procedure wherein
predetermined implementation are passed to an individual and the individual is required to
choose the most liable event which is appropriate for them for the purpose of running a particular
function or action in the area of their working.
Mostly the entrepreneur would like to prefer causation as it assist accent upon
knowledge. On the other hand, effectuation is found as more gainful for entrepreneurs, if they
want to prefer to capitalise upon opportunities. Causation plays an important role in analysing
the certainties which are going to be presented in a business organisation in near future.
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It also leads to the idea that the capability of a enterprise to control an unsure occurrence
is dependent upon the ability of the same to predict that particular event. Effectuation plays an
important role in determining the feature which can be inhibited in an uncertain and
unpredictable future happening. It track an assertive approach which state the idea that the level
to which and venture is able to organize it’s environment and surroundings is the area to which it
will be able to cope up with the uncertain future which lies ahead of the same.
It has been found that each and every given business enterprise has its own collection of
strategy, process, base, value that it likes to agree to for the purpose of getting sustainability and
survive in the marketplace. There are several entrepreneurial ventures which are based on
effectuation and there are some which select causation. It is totally depend on the mindset and
skill set of the industrialist in thought that how they would like to operate the company (Bagheri,
Newman and Eva, 2020). In the earlier times, the entrepreneurship was a very unexploited idea
and it was not exploited by the individual as much as it is done today because the entrepreneurs
were not agree for taking any mandatory risks with their businesses. The business organisations
generally use causation method for the purpose of setting up and functioning their business
organization. But with the changing times, entrepreneurs are becoming extra flexible, convinced
and fervent in relation to there business which make easy them with the much needed coerce to
take higher risks and attain exceptionally glowing place in the market.
Transformation in the style of entrepreneurship can be analysed easily and this revolution
impacted as a positively to the global economy. It also enhance the scope of all types of business
in business environment. It has been found that the modern entrepreneurship is a concept driving
and path breaking concept. In the modern period, entrepreneur are not using mundane approach
and they are busy in identifying the new possibilities of performing business operations with the
purpose of gaining success effectively and expand their business in global market. Lack of
flexibility and higher rigidity have been observed in the traditional businesses. That time the
businesses were not able to use contingency handling approaches in a well effective manner.
Higher contingency can be observed in the modern businesses because the entrepreneur know
how to manage the risk, finance resources, strategic plans and manpower in an effective and
efficient manner.
In the concept of entrepreneurial ventures, it has been observed that a start up
which is following effectuation may fail on the initial stage where the investment in business is
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low. The entrepreneurial ventures with causation have high risk efforts along with profit as
compare to these firms because of analysation of effectuation which is defined as a way of
providing wide opportunities available to a start up in the economic market which are trying
harder for the purpose of gaining success.
It has been analysed that mostly the entrepreneurial ventures select effectuation
phenomena as compared to the causation while planning to start a business. For the purpose of
gaining proper support and assistance, the entrepreneurial ventures have to focus on developing
effective alliances as it will help them by providing leverage within the market which also leads
to the developing good rapport and camaraderie with their competitors. Several of businesses
form strategic alliances as it help the businesses in enhancing the profitability, profitability and
market share of organisation (Donbesuur, Boso and Hultman 2020). For example: Uber and
Spotify. The strategic alliance of both companies help in gaining it's benchmarks.
In the terms of decision making, modern businesses are constantly focusing on adopting
innovations in order to perform marketing and promotion 0f their products and services.
Entrepreneurs are not applying the traditional methods or approaches in their businesses because
they are not suitable as per the current dynamic and competitive business environment. The
aggressive and competition can easily be identified n the business environment which also leads
to the increment in the needs for business in the terms of retaliatory strategies for the purpose of
rival companies. Due to the high competition, the business organisation is required to create,
formulate, implement and control the market practices. The businesses are becoming more
smarter as they increase the efficiency of flexibility, adaptability and relatability to the target
market. For instance, the marketing campaigns are found as really attractive and innovative. The
company performing the marketing activities and advertisement project by involving celebrity. It
attract the people to invest in their business and costumes buy their products.
While discussing regarding the finance decisions, the entrepreneur are majorly focusing
on aiming short term benefits. The traditional businesses always focused on the long term
profitability which is found as the primary goal of modern businesses (Bagheri, Newman and
Eva 2020). They are majorly focus on experimenting their business as it help them in attracting
the customers and achieve the short term goals. Participative and collaborative culture at work
place has been found as essential fore modern entrepreneurial ventures in today's world because
the development of participative culture at workplace develop a sense of communication, respect
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and imitative within the employees of organisation. As a result, the employees can share their
viewpoints and thoughts with each other. Employees will motivate towards the business
enterprise with enhancing the effectiveness in their working performance. Google company is
the best example of developing participative environment at work place. The employees of
Google can raise their voice and views in the respect to the firm and their operations.
Conclusion
From the above essay, it has been concluded that the entrepreneurship is consider as an
integral portion of global business. Entrepreneurs plays an important role in the growth of
businesses in global environment because all the outcomes or success of enterprise is depend on
the the efforts of entrepreneur towards the business as it will uplift it. It has been found that the
most of entrepreneurial ventures following effectuation have to face the situation of failure. In
ancient time, the entrepreneurs have inherent abilities of response, overcoming and eliminating
the failures in an effective and efficient manner. Entrepreneurs work on their capabilities through
which they can convert their ideas into a potential business strategies for the purpose of
satisfying the needs and requirements of customers in and earn profit. Modern entrepreneurs are
more diverse as compared to the ancient entrepreneurs. In addition to this, it has been also
analysed that the future enterprises will be high active and responsive as they will use the
advance technology. Their networking approaches also add the values in the business.
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References
Arvidsson, H.G., Coudounaris, D.N. and Arvidsson, R., 2020. The shift from causation to
effectuation for international entrepreneurs: Attitudes and attitude change versus social
representations. International Journal of Entrepreneurship, 24(3), pp.1-23.
Bagheri, A., Newman, A. and Eva, N., 2020. Entrepreneurial leadership of CEOs and
employees’ innovative behavior in high-technology new ventures. Journal of Small
Business Management, pp.1-23.
Donbesuur, F., Boso, N. and Hultman, M., 2020. The effect of entrepreneurial orientation on
new venture performance: Contingency roles of entrepreneurial actions. Journal of
Business Research, 118, pp.150-161.
Buccieri, D., Javalgi, R.G. and Jancenelle, V.E., 2021. Dynamic capabilities and performance of
emerging market international new ventures: Does international entrepreneurial culture
matter?. International Small Business Journal, 39(5), pp.474-499.
Kowalik, I., Danik, L. and Francioni, B., 2020. Specialized marketing capabilities and foreign
expansion of the international new ventures. Journal of Small Business Management,
pp.1-39.
Guccieri, D., Javalgi, R.G. and Cavusgil, E., 2020. International new venture performance: Role
of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing
capabilities. International Business Review, 29(2), p.101639
Online
Causation and Effectuation: Toward A Theoretical Shift from Economic Inevitability to
Entrepreneurial Contingency, (2001),[Online] Retrieved from;
<https://www.researchgate.net/publication/228264546_Causation_and_Effectuation_Toward_A_
Theoretical_Shift_from_Economic_Inevitability_to_Entrepreneurial_Contingency>
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