The Decision-Making Process of Swedish Born Global Video Game Developers – Effectuation and Causation

Abstract

The increasing globalisation of the modern world has made it possible for companies to internationalise far more rapidly than before (Andersson & Wictor, 2003) The term Born Global is an example of companies that are international almost directly after their foundation. Video game developers are good examples of Born Globals, i.e. since a large part of their business processes are global from inception (Strömbäck & Kroon, 2013). We therefore find that these companies’ internationalisation process is slightly vague and that it is of interest to explore their decision-making process rather than their internationalisation process. Earlier research suggests that internationalisation can be portrayed as a problem of decision-making (Schweizer, forthcoming). In order to explore the area of decision-making we have chosen to investigate and apply the theory of effectuation and causation by Sarasvathy (2001). The aim of this thesis is to create further understanding of internationalisation-related decision-making processes in the context of Swedish Born Global companies in the video game developing industry by applying the theory of effectuation and causation by Sarasvathy (2001). To enhance the understanding, we aim to investigate factors that potentially can affect the mentality behind the decision-making. Additionally, the purpose of this thesis is to give a contribution to the already existing literature on effectuation and causation decision-making by analysing how and why companies in this specific context use this kind of underlying methodology. In order to fulfil the aim of this thesis, we have chosen a qualitative research approach. The qualitative research consists of five minor case studies made on the following companies; Digital Illusions CE, Avalanche Studios, Paradox Interactive, Fatshark and Image & Form. Our final findings conclude that the companies studied in this thesis do not follow a specific pattern of causal or effectual reasoning, but rather tend to switch logic alternately as they go. We also found tendencies of a possible linkage between specific characteristics and decision-related reasoning. Furthermore, this study confirms that the factors “Networks”, “Globalisation”, “Competitors” and “Individuals at Management Level” influence the decisions and underlying methodology to differing degrees.