The IRE Framework: Entrepreneurial Decision-Making and Risk in International Expansion. A Multiple-Case Study

Abstract

This study explored how the concept of entrepreneurial decision-making and risk is reflected in the process of internationalization. By conducting thorough review of key research from authors such as Sarasvathy, Cavusgil et al. and Simon, a research gap was identified; The lack of integrating internationalization, risk and entrepreneurial decision-making in one cohesive framework. As a consequence of the gap, entrepreneurs may struggle to make informed decisions and miss opportunities in their international expansion. This gap led to the formulation of the research question “How are entrepreneurial decision-making and risks reflected in the process of internationalization”. The aim of the study was to identify connections between companies' entrepreneurial decisions with consideration of risks in international context. To address this, a qualitative and abductive methodology was applied. Eight semi-structured interviews were conducted with entrepreneurs active in various industries, selected through applying purposive and convenience sampling. The results from the interviews show that entrepreneurs frequently apply effectual principles operating in uncertain environments, adapting their strategies dynamically in response to changing business environments. These insights contribute to the reasoning of using the IRE framework, which integrates the concepts of internationalization, risk and entrepreneurship. The study concludes that overlapping these concepts provides a deeper understanding of how entrepreneurs navigate uncertainty during international expansion, offering insights essential for creating success in the intertwined world today.