Entrepreneurial approaches: A comparative study of Thai and swiss business founders

Abstract

This paper aims to analyze (1) the entrepreneurial approaches of decision-makers in SMEs, specifically exploring whether they apply principles of causation or effectuation when establishing new business ventures, and (2) it delves into contextual studies to explore the influence of national cultural values on decision-making approaches in SMEs regarding whether Thai and Swiss entrepreneurs apply the principles of causation or effectuation in establishing new business ventures differently. Specifically, it investigates whether entrepreneurs from Thailand and Switzerland, two countries with significant cultural differences according to Hofstede's cultural value dimensions (Hofstede, 1998; 2011), exhibit variations in their approaches and the underlying principles they utilize in the venture creation process. Forty-six in-depth interviews were conducted. The findings reveal that entrepreneurs from both countries tend to blend elements of effectual and causal reasoning when establishing their ventures. They focus on leveraging available resources to evaluate potential business opportunities, establish valuable partnerships and collaborations, and emphasize the importance of social networks, particularly with family and friends. The findings indicate that the national cultural context influences entrepreneurs’ preferences on causal and/or effectual reasoning applied to launching and growing new ventures. Thai entrepreneurs exhibited a stronger orientation toward achieving financial results, embracing unexpected opportunities while being open to risks, and placing a greater emphasis on maximizing anticipated returns on investment. In contrast, Swiss entrepreneurs considered the concept of affordable losses as an integral part of their decision-making process.