Abstract
Drawing insights from the effectuation, immigrant/transnational entrepreneurship, and acculturation literature, we argue that transnational entrepreneurs’ adoption of venture formation processes (specifically, effectuation vs. causation) is influenced by the balance and magnitude of their embeddedness in home and host countries. We further argue that the entrepreneurs’ acculturation process affects the likelihood of their adoption of effectuation through the balance and magnitude of embeddedness in home/host countries, and that the development of embeddedness through acculturation is moderated by the psychic distance between the two countries. Our research offers theoretical implications to the international entrepreneurship literature and the effectuation theory, and practical suggestions to venture managers.
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