Decision-Making during the Growth Process of an Organization. A case study of the factors influencing the logic employed in Clas Ohlson’s internationalization decisions

Abstract

Abstract By emphasizing the individual decision-maker, modern research has sought to improve our understanding of an organization’s internationalization decisions. However, limited attention has been given to the underlying reasoning and rationality behind these decisions, not least in a growing organization. In order to fill this research gap, effectuation theory is applied on a growing organization’s internationalization decisions. By conducting a single case study on Clas Ohlson, comprising of 12 interviews with managers involved in the company’s internationalization decisions, this thesis contributes with new insights on international decision-making, and decision-making logic in particular. Presented in the findings are four factors influencing decision-making logic in a growing organization, as well as how these factors develop during this growth process, and how they affect each other. More specifically, the findings show that organizational structure gains influence during the growth process to become a key-influencing factor on the logic employed in internationalization decisions. The relationship between the influencing factors further suggests that they should be considered collectively, in order to improve our understanding of an organization’s decision-making What is more, firms strive for employing causation logic in internationalization decisions, while a lack of relevant learnings may impede the organization’s ability to utilize this logic. However, as the firm grows and obtains more relevant experience on the international market, relevant learnings are increasingly developed which facilitate the adoption of causation logic.