The dynamic evolution of means and goals during the early internationalisation of South African small and medium-sized enterprises

Abstract

This study examines how the transformation and evolution of means influence the internationalisation goals of South African small and medium-sized enterprises during their early internationalisation, using effectuation theory. According to this theory, during periods of scarce resources and uncertainty, firms start internationalising by increasing their means—such as identity, knowledge, and networks—influencing their goals. While scholars have started to examine this means-goal relationship, they often overlook the dynamics of this process. The findings of this study should prompt early internationalising small and medium-sized enterprises to reconsider goal setting as a process influenced by their means. Small and medium-sized enterprises often struggle with scarce resources and uncertainty during their early internationalisation. Furthermore, understanding how they reconfigure and increase their means and how this influences their goals remains complex. Thus, effectuation theory was relevant for this study, as it addresses these challenges. This study contributes to effectuation theory in three ways. I offer a more precise categorisation of the goals that emerge during the process of effectuation. I confirm the current effectuation literature that the goals of the firm evolve when its means evolve. Finally, I show that this process of means and goals evolution is dynamic during effectuation. How does evolving means enable small and medium-sized enterprises to evolve their internationalisation goals was the main research question asked in this study. A case study on eight early internationalising South African small and medium-sized enterprises was conducted. Evidence suggests that during early internationalisation, means and goals evolve dynamically. Goals may range from general to more specified in no particular order, influenced by increased or decreased means. This study contributes to the literature by showing that means and goals evolve dynamically during effectuation. Firms should set general goals rather than specified goals when facing scarce resources and uncertainty during early internationalisation. The process perspective of this study provides methodological contributions to the literature. Future studies can incorporate the goal-setting literature into this study or test my findings in more developed markets over an extended period of time.