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Article Quote

Bingham, C. B. (2009). Oscillating improvisation: How entrepreneurial firms create success in foreign market entries over time. Strategic Entrepreneurship Journal, 3(4), 321-345.

Original

“Data in this study, however, show that a more improvised approach leads to a less successful foreign market entry process over time. Instead, data support the importance of using a less improvised approach” (p.326).

“Sequencing brings the present and future together in a way that creates team alignment and channels the energy and attention of organizational members. This helps firms get into a flow and move forward in a coordinated fashion” (p.331).

“sequencing helps firms build experience in an appropriate order. Just as the order of assembly is crucial when building a home or baking a soufflé, data here suggest that the order of experience is critical when developing a foreign market entry process. That is, particular countries are appropriate at specific times in internationalization” (p.331).

“[…] sequencing creates continuity between experiences. When engaging in heterogeneous experiences such as foreign market entries, the present and future often become disconnected because of divergent foci. While some executives concentrate on operations in current countries, others attend to entering new countries” (p.331).

“They [the results] indicate that more improvisation in opportunity selection may result in less successful country entries, since it encourages leaders to pursue immediate opportunities when other opportunities generating greater long-term value exist. More improvisation in opportunity selection also encourages leaders to quickly accumulate experience in ways that fail to build off the past. The hurriedness to capture emergent opportunities faster than other firms may, ironically, be the very thing that decreases opportunities to see connections across opportunities which are critical for generating performance advantages” (p.339).

References “Sequencing also improves sensemaking and problem

solving. Research suggests that effective problem solving involves defining three elements: (1) an initial state; (2) a goal state; and (3) a set of steps necessary to move from the initial state to the goal state (Newell and Simon, 1972). In a like manner, creating a sequence for county entries

enables leaders to understand where they are now, where they want to go, and the steps to get there.” (p.332)

“More broadly, the use of sequencing reflects greater cognitive sophistication. Research shows that while critical, temporal understandings do not form all at once. Instead, they develop over time as individuals gain insight about how events should be ordered (Fraisse, 1982). Indeed, a critical difference between experts and novices is that experts tend to follow temporal sequences of principles toward solutions, whereas novices do not (Larkin, McDermott, Simon & Simon, 1980)” (p.332).

“Some research suggests that the foreign market entry process in entrepreneurial firms will be more successful

if it involves more improvisation. It argues that because many entrepreneurial firms operate in dynamic environments, where opportunities are fast moving and transient, effective internationalization comes as organizational leaders enter new countries quickly and opportunistically based on emergent customer demand (Oviatt and McDougall, 1994; Zahra, 2005)” (p.326). “Consistent with others, I define sequencing as following a specified order of country entries (Delios and Henisz, 2003; Ellis, 2008)” (p.326).

Extant studies generally portray two sequence patterns: (1) one from culturally similar countries to more culturally distant countries (Johanson and Vahlne, 1977; Hofstede, 1980; Kogut and Singh, 1988); and (2) one from bigger countries to smaller countries (Davidson, 1980; Ellis, 2008).

“These studies also explicitly argue that the goal of sequencing is to maximize internal learning. Therefore, learning is more effective when firms follow a series of incremental steps (e.g., entering more culturally distant countries over time) so that leaders can gradually gain more knowledge and expand their absorptive capacity (Delios and Henisz, 2003)” (p.326).

“A primary contribution is offering insight into the relationship between improvisation and performance, an important stream in the strategy and entrepreneurship literatures (Brown and Eisenhardt 1997; Weick, 1998; Miner et al., 2001).4 First, data suggest the importance of less improvisation in opportunity selection (see Figure 2). While research argues that entrepreneurial firms should be opportunistic and improvise the selection of new opportunities (Kirzner, 1997; Shane, 2000), data in this study portray a different view.

Bingham, C. B., & Davis, J. P. (2012). Learning sequences: their existence, effect, and evolution. Academy of Management Journal, 55(3), 611-641.

References

“One common direct learning process discussed in the literature, trial-and-error learning, is defined as the process by which firm executives undertake a course of action, and the consequences of that completed action lead to change in the firm’s action or knowledge base (Argyris & Schön, 1978; Baum & Dahlin, 2007; Greve, 2003)” (p.612).

“Experimental learning is another direct learning process. Experimental learning takes place in controlled situations that organizations use to test causal propositions and create new knowledge (Cook & Campbell, 1979)” (p.612).

“Scholars have further argued that this off-line nature of experimental learning sets it apart from other direct learning processes such as trial and error (Miner et al., 2001). Thus, in experimental learning, variation in conditions is planned and intentionally introduced to produce insights about input-output relations” (p.613).

“A common indirect learning process—that is, a process of learning from others’ experience rather than firsthand—is vicarious learning (Huber, 1991; Kalnins, Swaminathan, & Mitchell, 2006; Levitt & March, 1988; Srinivasan et al., 2007), which generally occurs when firms alter their behaviors or cognition in response to the actions of competitors (Kim & Miner, 2007). Through observation, decision makers gather information about the characteristics and outcomes of competitors. The frequent result is imitation of seemingly successful practices (Denrell, 2003)”

Appendix 3

– Systematic Literature Review Slack within