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How Smaller Born-Global Firms Use Networks and Alliances to Overcome Constraints to Rapid Internationalization
Abstract
The authors identify the following key constraints that smaller born-global firms face: lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking. The authors explore how such firms overcome these constraints by using technology to achieve competitive advantage and by networking competencies to develop a range of alliances and collaborative partnerships. Thus, the article focuses on a particular aspect of business-to-business marketing, namely, how small firms achieve rapid growth internationally through alliances with suppliers, distributors, and joint-venture partners and how these relationships change over time to meet the changing needs of the partners.
... EPPs and export performance International entrepreneurial firms in emerging economies endeavor to compensate for resource constraints by developing and bolstering relationships with various governmental, quasi-governmental and nongovernmental entities (Hitt et al., 2000;Karabag and Berggren, 2014;Sim and Ali, 1998). Specifically, these firms endeavor to build firm-specific internal resources and entrepreneurial capabilities while simultaneously capitalizing on external resources provided by the three types of agencies (Freeman et al., 2006;Vasilchenko and Morrish, 2011). ...
... In general, exporters based in emerging economies face challenges such as a lack of financial and informational resources and an aversion to risk-taking (Freeman et al., 2006). However, in today's competitive marketspace, firms do not necessarily need to own assets (Al-Aali and Teece, 2014); they can instead overcome these challenges by mobilizing and orchestrating resources from external sources such as various governmental, quasigovernmental and nongovernmental agencies (Freeman et al., 1983;Oviatt and McDougall, 1994). ...
... International EO and export performance Entrepreneurial exporters are characterized by the EO dimensions of innovativeness, being proactive and risk taking (Freeman et al., 2006;Karami et al., 2020;Luo and Tung, 2007;Morrish, 2011). Innovativeness induces firms to design and launch novel products to meet customer expectations in foreign markets; this engenders customer loyalty and helps firms gain and bolster their shares of foreign markets (Covin and Miller, 2014;Dai et al., 2014). ...
Purpose
Although both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has received little attention. This study examines the role of international EO in deriving performance benefits from governmental and nongovernmental export assistance.
Design/methodology/approach
In this longitudinal study, two surveys were administered at two different times: In 2011, 705 Bangladeshi apparel exporters were surveyed, and in 2019, a subsequent survey of 198 firms in multiple industries was conducted. The aim of the surveys was to assess the relationships between governmental and nongovernmental assistance, EO and export performance.
Findings
The results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance has only direct effects. Furthermore, the negative influence of government assistance on EO reduces the total effects and renders them nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive and significant effects on market performance, indicating a partial mediation, whereas quasi-governmental assistance has positive and significant direct effects as well as negative but nonsignificant indirect effects. Nongovernmental EPPs have both direct and indirect significant effects on international performance, indicating a partial mediation.
Research limitations/implications
The study has important implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of government assistance, this study categorizes such assistance into three types – government, quasi-government and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO.
Practical implications
Entrepreneurs must emphasize the use of government assistance in order to enhance export performance. However, to promote both entrepreneurship and performance, they must emphasize nongovernment assistance. Exporters should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance.
Originality/value
Given the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)governmental assistance in export entrepreneurship.
... In addition, technological advances drive the internationalisation of companies regardless of their size, segment and location. For SMEs to access new markets, they strategically opt to form cooperative alliances between companies that give them faster access to those markets (Freeman et al., 2006). ...
... There was no statistically significant impact of micro-level entrepreneurial ecosystems on international performance (β = 0.093; p = 0.495). Notwithstanding the distinct characteristics that SMEs possess (Freeman & Schroder, 2006), these micro-level variables did not offer any results on this hypothesis. We can say that the various support agents provide access to the most diverse technologies, and there ends up being no impact of the use of existing technologies in companies. ...
The Entrepreneurial Ecosystems (EE) articulate concepts from various streams of literature and are formed by multiple stakeholders and relate to different levels of analysis. Although the literature shows a growing relevance on the theme of EE, most studies reveal to be conceptual, and the existence of empirical studies with quantitative methodologies is still scarce. This study attempts to contribute to filling this gap by developing a dynamic model of EE and its impact on the small and medium-sized enterprises (SME) international performance by aggregating different levels of analysis. Based on a sample of 120 SMEs, the results suggest that macro (agents) and meso (different partners) level variables positively impact international performance. We also find that technology transfer has a negative moderating effect on the meso level relationship of EE with digital performance. Our study also contributes to a greater understanding of the Entrepreneurial Ecosystems, its internationalization and the digital performance effect.
... market, commercial and political risks and in addition to the critical barriers encountered in internationalisation processes. Hence, internationalisation processes also assume rational and objective decision-making processes (Freeman, Edwards & Schroder, 2006). ...
... Antecedents: The classical economic literature spurns any demonstration that company size provides a kind of karma for its international performance and even prior to this stage during its internationalisation process. Major companies have a greater capacity to overcome market, commercial and political risks as well as the critical barriers existing to internationalisation processes (Buckley & Ghauri, 1999;Rowden, 2001;Hollenstein, 2005) and manage to implement internationalisation processes that assume rational and objective decision making processes (Freeman, Edwards & Schroder, 2006 developed to integrate the results of two or more independent studies about the same research question, we correspondingly defend how meta-analysis returns far more precise support for and testing of a particular theory than would be available by other means and approaches (Crook, Ketchen, Combs & Todd, 2008). Hence, we would suggest that future studies incorporate meta-analysis as a statistical technique for identifying and testing the influence of other dynamic capacities in addition to EO and MO that return insights into the international performance of SMEs. ...
Abstract
The mission of e-Government is to provide better, more efficient, and faster public services from central and local public administration to citizens and businesses.
In recent years, Kosovo has significantly increased the application of e-Government, which transforms the activities provided by Public Administration and had a great impact on citizens and businesses by making everyday procedures easier and more efficient.
E-Government brings great benefits to society. Benefits can be economic and social, including modernization of administration, education, health, justice, security, business, and trade development, increase in the budget, democracy, culture, scientific research, etc.
Within the modernization of the public administration through the extensive use of the Information and Technology Infrastructure the e-Government’s objective is to create a new dynamic relationship between Kosovo’s public administration, citizens, and businesses. By analyzing the current situation from the view of citizens and businesses, this paper will present the level and types of services offered by the government portal e-Kosova.
The purpose of this paper is to examine the impact of E-Government implementation on Kosovo institutions to citizens and the business community. In this paper, we intend to introduce the current situation and present the level of implementation of e-Government by analyzing results from the survey conducted by the Regional Cooperation Council 2021 edition of the Balkan Barometer for citizen and business perceptions in Western Balkan Countries.
During the short period of implementation, the e-Government in Kosovo faced certain challenges such Covid-19 pandemic, which will be the subject of elaboration in this paper.
Keywords: E-Government, Public Administration, e-Kosova, e-Government services.
... They seek to derive significant competitive advantage from the use of resources and the sale of outputs to multiple countries (Oviatt and McDougall, 1994;Knight and Cavusgil, 1996;Fan and Phan, 2007;Cavusgil and Knight, 2015). This born global phenomenon approach triggered empirical and conceptual studies that make up the overwhelming majority of extant born-global literature (Knight and Cavusgil, 1996;Madsen and Servais, 1997;Bell et al., 2001;Moen and Servais, 2002;Knight and Cavusgil, 2004;Gabrielsson, 2005;Rialp et al., 2005a, b;Freeman et al., 2006Freeman et al., , 2010Lopez et al., 2009;Madsen, 2013;Paul and Gupta, 2014;Cavusgil and Knight, 2015;Falahat et al., 2018). Born-global firms are becoming predominant and this phenomenon continues to evolve. ...
... For example, in Zou (1994)'s study on the driving forces of firms' internationalization strategy, the external and internal conditions of firms act as antecedents. Freeman et al. (2006) also reported that internal and external factors are the driving forces for firms to expand to overseas market. This paper uses this classification to examine the driving forces of Chinese born globals. ...
... By way of example, the resources identified as strategic resources were described as "difficult to imitate" (Sharma and Blomstermo 2003) or "costly to imitate or to substitute" (Coviello and Cox 2006) in the 102 papers. We also included as strategic resources those considered a source of "competitive advantage" (Bloodgood et al. 1996;Freeman et al. 2006) and "superior performance" (Musteen et al. 2010) for the EIF, as well as those that explicitly have a "strategic role" (Mort and Weerawardena 2006) for its growth. ...
... At some point, the EIF is officially founded. One or more founding entrepreneurs leverage their previous experience and networks, as resource pools, to operate in this phase (Freeman et al. 2006;Gabrielsson and Gabrielsson 2013). These two categories of individual factors (entrepreneurs' previous experience and networks) are strategic resources (Dominguez and Mayrhofer 2016;Ughetto 2016). ...
Despite an increasing number of studies identifying factors that influence the internationalization process for early internationalizing firms (EIFs), it remains unclear which of these numerous factors could play a strategic role and, more specifically, when. This paper develops a new conceptual framework anchored in the resource-based view to identify strategic resources that can explain EIFs’ internationalization process accurately over time. Building on a systematic literature review based on 102 papers covering a period of 29 years, we methodically present a phase-by-phase observation of EIFs’ internationalization process to identify the strategic relevance of different influential resources. The results highlight the importance of the shift from individual to organizational resources, which occurs at a critical phase of transition from the entry to the post-entry phase. Studying the evolution of strategic resources along four phases allows us to determine that the progress of EIFs through the phases of their internationalization process is closely linked to their resources’ development process. This study suggests some promising research avenues, at theoretical and methodological levels, and results in a series of concrete recommendations intended for entrepreneurs and/or managers of EIFs.
... Belso-Martinez (2006) notes that an active international profile and large-scale personal networks, largely contribute to access to markets and resources in a faster and more efficient manner. Freeman, Edwards, and Schroder (2006) identified seven key variables in the case of Australian-based Small and medium enterprises (SMEs), which are positively related to the rapid internationalization of SMEs, two of them being (i) personal networks that provide the basis for building partnerships and alliances; (ii) adapting relationships over time so that they are lasting and meet the changing needs of partners and the development of new relationships to enter new product markets (Freeman, Edwards, and Schroder (2006). Derived from these findings, this paper addresses the following research question: What is the role of the social capital accumulated in companies and state diplomacy for companies' internationalization? To be able to find the answer to a complex question, we will be searching through the prism of an interdisciplinary approach. ...
... Belso-Martinez (2006) notes that an active international profile and large-scale personal networks, largely contribute to access to markets and resources in a faster and more efficient manner. Freeman, Edwards, and Schroder (2006) identified seven key variables in the case of Australian-based Small and medium enterprises (SMEs), which are positively related to the rapid internationalization of SMEs, two of them being (i) personal networks that provide the basis for building partnerships and alliances; (ii) adapting relationships over time so that they are lasting and meet the changing needs of partners and the development of new relationships to enter new product markets (Freeman, Edwards, and Schroder (2006). Derived from these findings, this paper addresses the following research question: What is the role of the social capital accumulated in companies and state diplomacy for companies' internationalization? To be able to find the answer to a complex question, we will be searching through the prism of an interdisciplinary approach. ...
The goal of the paper is to identify the importance and role of social capital accumulated in companies and state diplomacy for companies’ internationalization. The research aims to show the relations between the actors, to contribute to the discourse between the actors, to suggest possible improvements, and thus to contribute to the success in the internationalization of companies. The research approach is interdisciplinary. The paper offers not only a theoretical review and reflection but also new findings resulting from the concretization of the topic based on an inductive approach—the case of the Republic of Slovenia. The research has shown that the most important mechanisms for entering the market were product quality, brand, and personal acquaintances. The results of the interviews showed the importance of personal acquaintances, combined with the implicit knowledge, owned by the employees of the national institutions.
... These two patterns of commitment are visualised in Figure 1, to place them among the two other extreme patterns (of remaining a local firm and achieving bornglobal status). We developed Figure 1 by relating this study's findings to the core literature on internationalisation models, such as born-global rapid internationalisation, the Uppsala model of low-risk (consistent with Freeman et al., 2006), the generated foreign revenues remained insufficient to fuel further growth. The low returns were thus a kind of self-fulfilling prophecy. ...
... Cultural traditions and ethical differences play leading roles in CSR implementation. Hah and Freeman [6,50], based on stakeholder theory and institutional theory, suggest that MNEs are driven to engage in socially responsible activities by host country stakeholders when the ethical standards of the host country differ from those of the home country. According to Barin Cruz and Boehe [51], China adapts headquarters CSR practices to respond to the needs of local host societies to be regarded as locally responsive to particular cultural circumstances. ...
This study analyzes papers on the corporate social responsibility (CSR) of Chinese multinational enterprises (CMNEs) published in top-tier management and international business journals. We extracted six key constructs from these studies, examined their interconnections, and identified five themes. These themes are (1) the relationship between corporate governance and CSR practice, (2) the relationship between institutional environments and CSR practice, (3) the relationship between resources and capabilities and CSR practice, (4) the relationship between strategy/activity and CSR practice, and (5) the relationship between corporate performance and CSR practice. Our study aim is to reveal research gaps that have not been identified in other previous review articles. Thus, based on the research gaps identified through a review of previous studies, we identified that there is a strong relationship between CSR and national cultural contexts; however, most current research on CSR has focused on Western cultural contexts. Thus, to further explore how CSR of CMNEs may differ from other countries (e.g., Western countries) that is our review aim, we provide five directions for future CSR research on CMNEs. Finally, we theoretically and conceptually analyze recent studies on the impacts of corporate governance, resources, and capabilities on CMNEs’ CSR practices in relation to corporate performance through a theoretical framework and identify future research directions on Chinese MNEs’ CSR by reviewing various theories and perspectives over the last 13 years.
... The two dimensions of intangible capital studied, i.e., network capability and human capital, can be associated with the measures HGCs take to overcome financial constraints. They can influence the quality and format of information to which HGCs have access [59], shape network connections by organizing and seeking alliances or business partners for joint projects [60], or help in outsourcing decisions [61,62]. ...
Economies and the companies operating within them are currently facing numerous challenges and threats that are caused by the COVID-19 outbreak and recovery and are prolonged by the Ukraine–Russia crisis. Both have drastically changed the way companies operate. High-growth companies (HGCs) can be an important group because of their characteristics and can provide guidelines for efficiently addressing these challenges and creating new opportunities. Our research contributes to this field, as the objective of the article is to find out whether the global challenges (i.e., the COVID-19 and Ukraine–Russia crisis) lead to a difference in the strength of the influence between the analyzed determinants—the growth factors of HGCs. For this purpose, a structural model equation (SEM) was applied and a multigroup analysis between the two data sets (before and during the global challenges) was performed on the pooled sample of n = 242 HGCs from the Republic of Slovenia. The results showed some statistically significant differences that can be explained by the time perspective and possibly by the influence of global challenges. Thus, this paper makes an important contribution to science, as a reassessment of the theories and implicit assumptions in current research is needed due to global challenges. It is also useful for policy makers who want to consider the impact of recent global challenges in their policy recommendations and for HGCs seeking sustainable high growth.
... One sees that many of them are founded by individuals with substantial prior IE, either from personal or work experiences (Acedo & Jones, 2007;Aspelund et al., 2007;Hewerdine & Welch, 2013;Luostarinen & Gabrielsson, 2006;Mcdougall et al., 2007;Hewerdine & Welch, 2013;Luostarinen & Gabrielsson, 2006;Mcdougall et al. al., 2003;Weerawardena et al., 2007). At the same time, however, a substantial proportion of Born Globals have little or no international business experience (Freeman et al., 2006;Knight & Liesch, 2016;De Cock et al., 2020). How do managers' IE affect the internationalization of enterprises that decide to move abroad? ...
This article aims to discuss how the constructs of international experience, cultural intelligence, and early internationalization are connected, according to their respective theoretical perspectives. The international business literature has not addressed how managers' international experience generates cultural intelligence and drives early internationalization, considering aspects of the entrepreneur and the organization. It is observed that the international experience results in three characteristics: cultural knowledge, cultural skills, and metacognition. The manager's characteristics can be incorporated into the proposed model, demonstrating the connection between international experience, cultural intelligence, and early internationalization. They encompass the manager's international orientation, faster recognition of international opportunities, and faster internationalization.
... Complex integration requires sophisticated system governance to implement principles, processes and rules upon which collaboration can be undertaken (Paulsson et al., 2017). In certain situations, economies of scale for this collaboration infrastructure can overcome firm level limitations that reduce collaborative activity, especially technological infrastructure (Freeman, Edwards & Schroder, 2006). ...
The presence of institutional mechanisms to facilitate collaborative activities between operators, and consumer preferences for these activities, have not been studied in the public transport context. Exploring preferences in both intracity and intercity transport options (incorporating long distance transport components such as air services), we use random parameters logit models to analyse integrated travel choice experiments. We show that consumers have preferences for attributes resulting from operator collaboration that can deliver them better door-to-door travel options across the whole transport ecosystem, both in their own city but just as importantly, when travelling to another city. Our results suggest that the proposed method of institutional integration (MaaS 2.0 or CaaS) creates better value for respondents, such that they would be more likely to engage with integrated transport solutions rather than the default option for many, which is the car. Consumers are willing to pay for collaboration activities that inherently arise out of institutionally facilitated interaction between operators and that lead to improvements in their journey. Expansion of institutional integration such as that which may be possible through smart ticketing platforms as an institutional coordination mechanism may facilitate greater development of these features and lead to more integrated travel being chosen by consumers.
... While interfirm relationships have been studied in international markets, little is known about how networks operate in global environments. Smaller global firms tend to use alliances to overcome constraints associated with rapid internationalization (Freeman, Edwards, & Schroder, 2006). The cultural distance between network members may explain the performance of international marketing relationships, and merits further investigation. ...
Interfirm collaboration and exchange relationships are fundamental to how value is created , managed, and exchanged between firms. In this paper we first identify three major research themes (nature, governance, and outcomes) that existing research has focused on and then propose three structural shifts (technology, platforms, and globalization) that might influence nature, governance, and outcomes associated with interfirm collaboration. We also synthesize a research agenda for the future and develop multiple research propositions that might become the foundation to integrate the structural shifts into research on interfirm collaboration. We provide guidance on how existing theories can help scholars address new research questions arising due to the structural shifts. Finally, we provide insights to managers on the type of data that they need to access to make more effective decisions related to interfirm collaboration in a dynamic business environment.
... According to Freeman et al. 2006, there are five key strategies for entrepreneurial venturing: Extensive personal network contacts, Collaborative partnerships with large foreign customers and suppliers, Client followership, Use of advanced technology and Multiple modes of entry. However, it becomes evident that in a developing country context, some of these options are simply not available. ...
... The importance of stakeholder networks in business associations was mentioned in 18 articles. [31] x x x x x [32] x x x x [12] x x [33] x x x x x x x [34] x x [35] x x x x [36] x x x x x [37] x x [38] x x [27] x x x [39] x x x x [40] x x x x [11] x x x x [41] x x x [42] x x x x (continued) [43] x x x [24] x x x x [5] x x x [44] x x x x x x x [2] x x x x [8] x x x x [45] x x x [18] [46] x x x x x [47] x x x [48] x x x x [6] x x x [49] x x [50] x x x [51] x x x [52] x x x [3] x x x (continued) [53] x x x [54] x x x x x x x x [55] x x x x [56] x Other concepts/types of associative business topics linked to digital business include associations and networks that operate digitally, e.g., on digital platforms (13 articles), the impact of digital ecosystems and the digital environment to businesses (10 articles), digital entrepreneurship in terms of ventures in the digital domain (9 articles), electronic markets and e-business as platforms and channels (6 articles), and finally, electronic clusters and digital innovation hubs as platforms to collaborate with digital methods and tools (3 articles). ...
Associative business structures (business associations) and non-associative business structures (those without any formal or juridical associative agreement) provide platforms to share knowledge, gain insights and collaborate. One additional benefit to participate in these structures is the opportunity for business development. In some cases, and especially for SME, they provide important market opportunities and access to relevant stakeholders. A literature review aimed to identify the concepts described about associative and non-associative business structures in the context of the digital age and digital transformation. The most often referenced concepts (business networks/business relationships, the diversity of actors in a network/business ecosystems, innovative networks, and stakeholder networks/business associations) and not yet prominent concepts (digital associations/digital networks, digital ecosystems/digital environment and digital entrepreneurship, e-markets/e-business environment and e-clusters/e-hubs/digital innovation hubs) provide input and ideas of how associative business structures could be supportive and relevant on the SME business development journey in the digital era.
... The importance of the entrepreneurial ecosystem on entrepreneurial internationalization extends from born globals to internationalizing SMEs in general: the latter face a variety of barriers they have to overcome in order to achieve international growth (Hutchinson et al., 2009;Hessels & Parker, 2013;Kahiya, 2013), barriers that the entrepreneurial ecosystem can help mitigate (Theodoraki & Catanzaro, forthcoming). More specifically, many of the typical barriers for successful entrepreneurial internationalization -outsidership to networks (Schweizer, 2013), lack of financial resources (Freeman et al., 2006), lack of international entrepreneurial culture (cf. Dimitratos & Plakoyiannaki, 2003), and lack of knowledge Fernhaber et al., 2009) correspond to the specific elements of the entrepreneurial ecosystem, as outlined by Stam and van de Ven (2019). ...
The COVID-19 pandemic has had a major impact on international entrepreneurship. The purpose of this study is to assess the future of international entrepreneurship as a field of research and to propose the main consequences for scholars and practitioners post-COVID-19. We examine the three main macro-level global phenomena (digitalization, ecosystems, and institutional support) that are impacting the consequences and repercussions of international entrepreneurship during and post-COVID-19. Specifically, we present arguments for the rise of born digitals as the predominant form of internationalizing enterprises as well as for the importance of the local entrepreneurial ecosystem and export support for sustaining international entrepreneurship post-COVID-19 and beyond. Based on the analysis, we provide recommendations for researchers on international entrepreneurship for potential future research avenues. The study also includes recommendations for policy and practice on public support of digital international entrepreneurship, small- and medium-sized enterprise export promotion, and ecosystem support.
... Otra línea de investigación acerca de la internacionalización ha profundizado sobre el efecto que ejercen las redes de apoyo al momento de expandir los negocios internacionalmente (Bembom & Schwens, 2018;Coviello, 2018;Yamin & Kurt, 2018;Poblete & Amorós, 2013;Freeman et al., 2006;Sharma & Blomstermo, 2003). ...
El objetivo principal de este artículo es analizar la evolución teórica que han tenido los estudios vinculados a la internacionalización de la empresa. Para ello, se llevó a cabo una revisión bibliográfica del estado de las investigaciones en la temática en revistas arbitradas y libros vinculados al tema de interés. Se realizan algunas referencias al concepto de internacionalización y se efectúa una revisión panorámica y sistemática de la literatura sobre el tema de las teorías relacionadas al proceso gradual de internacionalización, de los enfoques que hablan de los procesos no graduales o acelerados de internacionalización y, en tercer lugar, se complementa el análisis con otros enfoques o modelos sobre la internacionalización de las empresas que se consideran aportan a los objetivos de este estudio. La revisión de esta literatura resulta pertinente desde un punto de vista histórico, ya que gran parte de los trabajos actuales sobre la internacionalización de la empresa se ha desarrollado bajo contextos en los que la política comercial imperante a nivel mundial era la de liberalización comercial y no ante contextos de proteccionismo comercial creciente. Estudios recientes analizados en este artículo han resaltado justamente la necesidad de adaptar los conceptos de internacionalización de la empresa a contextos dinámicos, sistémicos, e inciertos. En definitiva, este artículo profundiza en cómo las empresas alcanzan la actividad exportadora y cuáles son las bases teóricas que explican estos mecanismos.
... One way out has been the adoption of collaboration strategies and strategic network alliances (Freeman et al., 2006;Håkansson & Snehota, 2006;Kirkels & Duysters, 2010;Lee et al., 2012). Both formal and informal (Gulati, 1998(Gulati, , 1999) studies on corporate networks have addressed the topics of network performances, interpersonal and organizational features, and the distribution of power between networks' members (Keast et al., 2004;Keast et al., 2007;MacGregor, 2004;Mandell et al., 2016;Mandell & Keast, 2008;O'Donnell, 2004;Storey, 1994). ...
The global economy's transition toward more sustainable development models is undoubtedly grounded on small and medium-sized enterprises (SMEs). However, SMEs, individual entrepreneurs, and microenterprises have always encountered barriers to implementing social responsibility and sustainability concepts. The paper investigates the enabling role of formalized corporate networks to drive SMEs toward sustainable behaviors. A quantitative nonlinear regression approach is applied to a content analysis of a sample of network contracts coded. The content analysis is applied to analyze the declared objectives, the purpose of the contract, and sustainability areas. An ordered logistic regression is applied on variables related to the behavior of SMEs before entering in the contract and post-adhesion phases. Data demonstrates how networks of SMEs can be used as enabling factors to boost sustainability among them. Specifically, the study is based on a sample of 96 formalized network contracts (FNCs), including 1486 Italian SMEs in that sustainability-oriented networks. It offers an evidence-based perspective on how networks of companies can play a fundamental role in the development of policies aimed at bringing small companies closer to the concept of sustainability (such as eco-innovations, eco-efficiency, environmental performance, and social innovations, among others) and its practical implementation. This paper has two significant strengths. The first is that it uses as a sample a set of 1486 companies, including individual entrepreneurs and microenterprises, whose data are usually difficult to collect. The second is that it demonstrates the efficacy of a contractual form that could be scalable to different countries.
... There is a clear call for the reconfiguration of official EPPs for SMEs that face different pathways in their internationalization process (Coudounaris, 2018a, b;Freeman et al., 2006;Sui and Baum, 2014). Given the characteristics of EI SMEs, including more committed and experienced executives in international activities (Kyvik et al., 2013;Zhang et al., 2009) and greater strategic involvement in the external market (Hsieh et al., 2019;Knight and Liesch, 2016;Kuivalainen et al., 2007), it is theoretically possible to suppose that EI SMEs need different EPPs due their distinctive characteristics. ...
Purpose
This paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.
Design/methodology/approach
The authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).
Findings
The results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.
Practical implications
Managers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.
Originality/value
Research on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.
... Gavi tapped into existing pools of vast experience using market-shaping strategies and industry consolidation of sorts. A network effect is evident in smaller firms in previous literature (Freeman et al., 2006) and applies to IGOs, which can mobilize vast sums of money and tap into existing resources held by other players in the market. Further, we see how the network effect moves from Gavi through local health ministries and CSOs working with UNICEF, WHO, and World Bank. ...
Objective: The article’s objective is to understand how non-MNE actors in the global arena, like intergovernmental
organizations (IGOs) embed themselves in the global value chain by using their strong ties to states.
Research Design & Methods: For this study, a qualitative methodology approach investigates an underexplored
area of research using a single case study, GAVI, that utilizes thick data.
Findings: The paper contributes to our understanding of IGOs and how they internationalize. New motives are
identified, and the concept of soft power has been extended to IGOs.
Implications & Recommendations: IGOs in the humanitarian or developmental sector use soft power strategies
to embed themselves in the global value chain. The paper’s implications are for policymakers and practitioners
in the third sector, including those who invested interest at state-represented foreign direct investment.
Future studies can look at how networks are leveraged, spillover occurs from a personal level to an
institutional level, and vice-versa combining diplomacy, bargaining, and legitimacy.
Contribution & Value Added: The study highlights new areas of research like that of soft power. The current
internationalization models of SMEs and MNEs may not neatly fit in the context of IGOs (which are born
global). We reiterate that existing IB theories need to be applied to other state actors like sovereign wealth
funds and non-governmental organizations. The above case study, a detailed historical analysis using thick
data, is a methodology not often published.
... In this paper, we argue that prior international experience is relevant because it assists managers in identifying potential opportunities, markets, and international partners quickly, accessing foreign market knowledge and information, reducing information asymmetries and transaction costs (e.g., managing and monitoring personnel) and using their existing social networks spread across borders to assist with the internationalization process and minimize risks (Madsen and Servais 1997;Oviatt and McDougall 2005;Freeman et al. 2006;Loane and Bell 2006;Danis et al. 2009;Fernhaber et al. 2009). It is further argued that experiential knowledge is an essential factor in SMEs' capability to engage in foreign market activities (Evangelista and Mac 2016). ...
This paper focuses on SMEs from the Latin American region and aims to build on existing literature on the emergence of the institution-based view in combination with the resource-based view. We contribute to existing literature by extending the application of the aforementioned theories to firms in three under-researched countries in this region. Specifically, we contribute to the extant literature by providing empirical insights on how home country–specific resources and firm-specific resources can affect the internationalization speed of SMEs in Latin American region. In order to achieve our objectives, we empirically examine the role of economic freedom (EF), prior business/international experience, and firm size on speed of internationalization. We use a dataset of Latin American SMEs, employing Poisson and negative binomial (NB) regression techniques. Our data cover three main Latin American Pacific Rim economies—Chile, Colombia, and Peru—with similar economic specializations, geographical borders, and economic growth dynamics. We find that (1) some parts of Economic Freedom Index (EFI) accelerate the speed of internationalization, whereas other areas slow it down or have no effect. Specifically, the closer to full EF the home country is in terms of regulations and government, the shorter the time to internationalize. (2) More experienced management teams are more likely to translate their knowledge into faster international market entry, but this pays off only for larger sized SMEs in contrast to smaller ones due to complementarities between managerial resources and physical, financial, and organizational resources. (3) Finally, industry, firm location, and country destination can only weakly explain the speed of internationalization. The findings add to the literature on SME internationalization in emerging markets and point towards potential policies to stimulate growth by SMEs in these markets.
... Despite these different labels, all studies present the same organizational phenomenon: small firms, characterized by a strong entrepreneurial and market orientation, become involved in international trends in the first two-three years after their inception, and apply cutting-edge technology to speed-up innovation and internationalization (Knight & Cavusgil, 1996, 2004. The rapid internationalization of these firms was facilitated by a series of trends in the world economy (Madsen & Servais, 1997), such as the fragmentation and markets, the development of new market niches, and the growing availability of internationalization information and resources; the entrepreneurial orientation, capabilities and skills of the owner-manager (Shih & Wickramasekera, 2011), and the increased popularity of strategic alliances as means to access information or complementary resources required for international expansion (Freeman et al., 2006). This model has outlined the entrepreneurial nature of the SMEs internationalization process, outlining the importance of entrepreneurial orientation for organizational competitiveness and success in foreign markets: "International entrepreneurship is a combination of innovative, proactive, and risk-seeking behaviour that crosses national borders and is intended to create value in organizations." ...
... founder and chief of staff ofMSF Denmark, 1993-1996 member of the board, 1996; transcripts of interview fromBinet & Saulnier, 2017, p. 124)".Thus, MSF needed to form alliances in order to broaden its scope and way of acting (as proposed byFreeman, Edwards, & Schroder, 2006). At this stage of internationalization, contacts for prospecting for resources were no longer made exclusively with individuals linked to the medical environment or MSF itself, but with multinational companies, providing new forms of learning to the organization(Weerwaderna et al., 2007):"So I visited 55 of the largest Japanese companies to ask them each for one million yen. ...
This paper aims at investigating the resource-seeking internationalization process of an international nongovernmental organization (INGO) from the process point of view. INGOs have received scant attention in the international business literature, despite their relevance in almost every aspect of aid and development and as actors of global governance. The research question addresses the issue of whether or not INGOs can follow a path similar to business firms in their internationalization process. The study departs from two different theoretical perspectives - the Uppsala model and the born global perspective - to study the case of the NGO Médecins Sans Frontières (Doctors Without Borders), an international, private, nonprofit, member-based organization. We identify three stages in the resource-seeking internationalization process of the NGO, which present similarities with that of business organizations. The study contributes to the IB literature by revealing key aspects of the internationalization trajectory of an NGO to raise funds and recruit volunteers in advanced and emerging economies with the purpose of employing these resources to support its emergency assistance activities in less developed countries, and to the literature on INGOs in exploring the issue of resource-seeking internationalization.
Keywords:
NGO; internationalization process; resource seeking
... Knowledge is also crucial in explaining the relationship between innovation and internationalisation. Empirical studies suggest that newly established SMEs that have innovative capabilities are able to perform early and rapid internationalisation (Coviello and Munro, 1997;Freeman et al., 2006;Eurofound, 2012;Love and Ganotakis, 2013), and link this ability to the fact that such firms tend to have a wide range of internal and external sources of knowledge, including during the post-entry stage (Puthusserry et al., 2020). Access to internal and external sources of knowledge means these firms can focus on niche markets (Baronchelli and Cassia, 2014), choose differentiation strategies over cost leadership (Cavusgil and Knight, 2015), develop market orientation and market positioning strategies (Armario et al., 2008), and therefore internationalise early, i.e. born globals (Knight and Cavusgil, 2004). ...
This study explores the interdependent effects of internationalisation and sources of internal and external knowledge on the level of innovation. We present possible pathways that small innovative Romanian software product provider firms pursue to reconfigure their resources to be competitive beyond CEE. This product provider segment of the software development industry exhibits characteristics of innovation-driven economy in specific Romanian city-regions. We examine fourteen SMEs that develop their own products using fuzzy-set Qualitative Comparative Analysis. fsQCA allows us to methodologically differentiate between the distinct pathways to high-level and low-level innovation based on the sources of knowledge and the degree of internationalisation of the product market. We find that internationalisation accelerates the level of product innovation; but together with knowledge sources, it becomes a critical differentiator between high and low-level innovation products. We also find that while combining internal knowledge sources with internationalisation is an effective way for early and gradual internationalisers to introduce high-level innovation products, some internationalised firms rely on the advantages of early internationalisation to the exclusion of external knowledge sources. Moreover, if internationalised, local market-oriented firms can move beyond low-level innovation. Our findings extend the current understanding of the dynamics of SME internationalisation and innovation in the CEE context.
Article free download available at:
https://authors.elsevier.com/a/1dSSn3qXVuFPvX
Objetivo: O presente trabalho é teórico e possui o objetivo de discutir a relação entre as instituições de suporte, os serviços prestados por elas, a estrutura de relacionamentos e o desempenho dos destinos turísticos. Método: A presente pesquisa aponta a existência de lacunas teóricas e formula proposições de pesquisa mediante a metodologia de ensaio teórico – com emprego da técnica de revisão sistemática de literatura Knowledge Development Process – Constructivist. Resultados: Este estudo formulou cinco proposições de pesquisa: (i) a diferença entre o tipo de instituições de suporte nos destinos não é significativa; (ii) a diferença entre o tipo de serviços prestados pelas instituições de suporte é significativa; (iii) há relação entre o número de instituições de suporte e o desempenho do destino; (iv) há relação entre a quantidade de serviços prestados pelas instituições de suporte e o desempenho do destino; e (v) há relação entre a estrutura dos relacionamentos e o desempenho do destino. Contribuições: As contribuições do estudo estão pautadas na elaboração de cinco proposições de pesquisa que se caracterizam como oportunidades de pesquisas. Ademais, sugere-se: (i) investigar, a partir de uma abordagem qualitativa, destinos turísticos brasileiros, sendo de alto desempenho e baixo desempenho para verificar diferenças do ponto de vista do suporte às empresas; (ii) investigar, a partir de uma abordagem quantitativa, mais destinos turísticos brasileiros. Originalidade: Há um pequeno número de estudos que se destinam apresentar, de maneira fundamentada, proposições de pesquisa. A presente pesquisa se destaca por promover o debate e disponibilizar aos pesquisadores da área proposições que podem ser analisadas sob diferentes abordagens teóricas e metodológicas.
Purpose
Guided by resource-based theory, this study unpacks the relationship between an export entrepreneurial marketing orientation (EMO) and export performance. This is undertaken by investigating quadratic effects and the moderating role of export coopetition (cooperation amongst competitors in an international arena).
Design/methodology/approach
Survey responses were collected from a sample of 282 smaller-sized wine producers in Italy. This empirical context was ideal, as it hosted varying degrees of the constructs within the conceptual model. Put another way, it was suitable to test the underlying issues for theorising purposes. The hypotheses and control paths were tested through a three-step hierarchical regression analysis.
Findings
An export EMO had a non-linear (inverted U-shaped) association with export performance. Furthermore, this link was positively moderated by export coopetition. With too little of an export EMO, small enterprises might struggle to create value for their overseas customers. With too much of an export EMO, owner-managers could experience harmful performance outcomes. By cooperating with appropriate industry rivals, small companies can acquire new resources, capabilities and opportunities to help them to boost their export performance. That is, export coopetition can stabilise some of the potential dangers of employing an export EMO.
Originality/value
The empirical findings signified that an export EMO has potential dark-sides if these firm-wide behaviours are not implemented effectively. Nevertheless, cooperating with competitors in export markets can alleviate some of these concerns. Collectively, unique insights have emerged, whereby entrepreneurs are advantaged by being strategically flexible and collaborating with appropriate key stakeholders to enhance their export performance.
Brokerage has been considered an important source of opportunity in international entrepreneurship. While extant research focuses on pre-existing social capital that underlies the brokerage position, little attention has been paid to the evolutionary process and the contextual conditions of becoming a broker and its transition over time. This study addresses these issues through a single case study of an international new venture (INV) founded in the emerging electric vehicle industry in China, an emerging market. The findings show that by reducing transaction costs, INVs can build initial brokerage positions by integrating technological capabilities with marketing capabilities, consolidate the brokerage network by leveraging a diverse customer base and supplier networks, and transition from a bridging focus to a coordination focus through trust-building and knowledge diffusion as structural holes close over time. This path is more effective in international business, emerging markets, and emerging industries, as these contexts have high transaction costs arising from unclear labor division, fragmentation, ambiguous standards, information asymmetry, and potential opportunistic behaviors. This study contributes to the international entrepreneurship and brokerage literature by examining the process of formation, consolidation, and transition of international brokerage networks through the evolutionary and the contextual lens.
TÜRK TEKSTİL VE KONFEKSİYON İHRACATÇISI KÜÇÜK VE ORTA ÖLÇEKLİ İŞLETMELERDE ULUSLARARASILAŞMA SÜRECİNDE DİJİTALLEŞMENİN ETKİLERİ VE ÖRGÜTSEL ÖĞRENME ODAKLI BİR MODEL ÖNERİSİ
Small and medium enterprises (SMEs) are increasingly viewed as valuable contributors to the global economy, which translates into their importance in business literature and academic research. Recent studies suggest that there exists a substantial variety of international activities pursued by SMEs expanding abroad, with a prominent presence of early internationalised enterprises, including born global. Despite the acknowledgement of the importance of human capital for SME internationalisation, there is a persistent knowledge gap concerning HR practices in this context. Until now, researchers investigating the accelerated internationalisation of SMEs have focused either on the human capital of decision-makers or selected attributes of employees, although these have only been at the pre-entry or entry stages. Thus, activities performed after entering foreign markets remain. This book attempts to reduce this gap and contribute to the body of knowledge concerning HR practices in early internationalised SMEs with an emphasis on the post-entry phase.
By taking such an approach, this volume integrates two streams of research: HRM in the SMEs and international business. It provides managers of SMEs with useful information on dealing with internationalisation-related challenges by means of various practices including work structuring, recruitment and selection, training and development, employee appraisal and remuneration, and performance management. The discussion of these issues is based upon data from a survey conducted in 200 SMEs and case studies exemplifying HR practices in early internationalised small and medium enterprises. It offers academic researchers, postgraduate students, and reflective practitioners a state-of-the-art overview of managing human resources in small and medium enterprises expanding internationally, including both accelerated and incremental paths
www.routledge.com/9781032335186
Associative business structures (business associations) and nonassociative
business structures (those without any formal or juridical associative
agreement) provide platforms to share knowledge, gain insights and collaborate.
One additional benefit to participate in these structures is the opportunity for
business development. In some cases, and especially for SMEs, they provide
important market opportunities and access to relevant stakeholders. This literature
review is aimed at identifying the concepts about associative and non-associative
business structures in the context of the digital age and digital transformation. The most often referenced concepts (business networks/business relationships, the
diversity of actors in a network/business ecosystems, innovative networks, and
stakeholder networks/business associations) and not yet prominent concepts (digital
associations/digital networks, digital ecosystems/digital environment and digital
entrepreneurship, e-markets/e-business environment and e-clusters/e-hubs/digital
innovation hubs) provide input and ideas of how associative business structures
could be supportive and relevant for SME business development in the digital era. As
a navigation aid and for future research, these concepts were summarized in
a business ecosystem framework (BEF) for the digital age.
Currently, the pressure to internationalize is big. Selling outside the domestic market is, also, for the family firms a relevant goal. Knowing that characteristics of family businesses affect their activity and decisions in international markets, understanding how the family ownership determine the earliness and post-internationalization speed, is particularly important. In addition, we intend to analyze how innovation activities moderate this relationship. We propose, therefore, to contribute to a better understanding of the factors that influence the speed of internationalization of family firms.
İşletmelerin uluslararasılaşma süreçleri, uzun yıllardır uluslararası işletmecilik alanında birçok araştırmanın konusu olmuştur. Bu araştırmaların gelecek vaat eden alanlarından bir tanesi de Küresel Doğan İşletmelerdir (KDİ). KDİ’ler sınırlı kaynak ve uluslararası deneyimlerine rağmen, kurulur kurulmaz veya kurulduktan kısa bir süre sonra uluslararası hatta küresel bir yaklaşımı benimseyen küçük ölçekli işletmeler olarak kavramsallaştırılmaktadır. Bu çalışmada KDİ’lerle ilgili kapsamlı bir literatür taramasının yapılması amaçlanmıştır. Kavramsal bir çerçeve sunulmakla beraber konuyla ilgili son gelişmelerin de ele alındığı araştırmanın, gelecekteki çalışmalara ışık tutma noktasında katkıda bulunacağı düşünülmektedir.
Driven by the importance of exporting for growth, this report examines the exporting behaviour of UK small firms in rural and urban locations. Analysing data from five waves of the Longitudinal Small Business Survey from 2015 to 2019, the report examines the development by firms of goods or services that are suitable for exporting and the subsequent decision to export, either consistently or intermittently. Overall, we find significant differences between rural and urban firms in terms of exporting, where firms located in sparse, dispersed areas were more likely to export, although less likely if they declared themselves as family businesses. We also find that some types of firms, BAME-owned and women-owned businesses, are much less likely to develop tradeable goods and services. We demonstrate how the role of advice seems specifically connected to the decision to develop tradeable goods and services, rather than exporting per se. The research confirms the importance of productivity and innovation on both exporting and developing tradeable goods and services. We propose a future research agenda on the exporting practices of rural family businesses and women-owned enterprise, and on the role of exporting advice.
Acknowledgements and funding
This research report is published by the National Innovation Centre for Rural Enterprise (NICRE) which is funded by Research England to collaborate, research and co-design ideas and solutions to foster rural enterprise and unlock the potential of rural economies. NICRE works with businesses, policy makers and other partners across the UK to take part in research and catalyse change.
We examine the effect of international new ventures’ (INVs) congenital knowledge inherited from their founding teams vs. their experiential knowledge gained through learning by doing on the initiation vs. continuation of their international growth. Data from 144 technology INVs show that the effect of congenital knowledge fades as experiential knowledge accrues over time and fuels sustained international growth. The relationships are moderated by whether founder teams’ work experience is in the same or a different industry as the INV as well as the level of external funding received by the INV. Our study and results contribute to the literature on INVs’ post-entry internationalization.
Purpose
Guided by a relational, stakeholder perspective of resource-based theory, the purpose of the current investigation is to help unpack the complexity of the performance-enhancing nature of coopetition for international entrepreneurs, namely the interplay between collaboration and competition. The context features under-resourced wine producers owned and managed by entrepreneurs that have implemented an internationalised business model. The focus of the study involves the influence of a “competitor orientation”, namely when decision-makers understand the short-term strengths, weaknesses, long-term capabilities and strategies of key current and potential rivals.
Design/methodology/approach
Data collection primarily featured semi-structured interviews with owner-managers of wine-producing firms in New Zealand that reflected heterogeneity amongst international entrepreneurs' strategies targeting different product markets within their respective business models. Secondary data were also collected where possible. Specifically, interviewees' firms exhibited different portfolios involving wine sales (with varying export intensities) together with augmented sales of tourism-related products/services focussed on the domestic market.
Findings
Coopetition activities amongst international entrepreneurs varied; i.e. influenced by respective owner-managers' competitor orientations. Illustrations of different decision-makers' business models within a 2 × 2 matrix feature those with a low- or high-export intensity, together with a narrow or augmented product portfolio. Internationalising entrepreneurs' perceptions varied regarding the extent to which their respective business model was oriented towards local cluster-based domestic tourism with limited export sales, as opposed to those with national and more importantly international wine sales. Possessing and acting upon relevant knowledge manifested in which competitors international entrepreneurs collaborated with and the extent to which this took place across product-market strategies. In turn, this enabled particular decision-makers to exhibit flexibility; hence, entrepreneurs enter and exit certain markets together with changing export intensities, as varying opportunities were identified and exploited.
Originality/value
Although the performance-enhancing nature of coopetition is largely established in prior literature, the complexity of that relationship remains relatively under-researched, not least, amongst international entrepreneurs. More specifically, the extent to which decision-makers that are engaged in coopetition exhibit a competitor orientation remains under-researched. Unique insights feature a 2 × 2 matrix in order to provide originality regarding international entrepreneurs' respective product-market strategies within their business models that are underpinned by varying coopetition relationships and competitor orientations.
Purpose
Operating in a variety of countries, multinational companies (MNCs) experience a high variety and variability of physiological and contextual dynamics, requiring a more careful knowledge management approach. In this scenario, this paper aims to investigate the entrepreneurial facets and managerial aspects (entrepreneurial orientation/managerial intentionality) of MNCs’ internationalization from a knowledge-based perspective.
Design/methodology/approach
A theory-building approach is applied, involving a comparative case study of two MNCs conceived through the separation of a unique family business. Aiming to enrich the research about companies’ internationalization, some crucial elements are individuated to build a theoretical frame explaining the evolutionary paths of so-called born global.
Findings
This paper shows that companies’ internationalization development is based on a multiplicity of variables and underlines the need to incorporate different points of view when attempting to explain the dynamics of internationalization processes.
Research limitations/implications
The empirical significance of the two cases does not legitimize theorization. However, this research presents interesting results that could be strengthened by a series of comparative case studies dealing with other MNCs or deeper quantitative investigation.
Originality/value
This research approach could be considered as stimulating by the scientific and managerial community, as the internationalization process is articulated by mixing managerial, entrepreneurial and cognitive aspects.
This study aims to examine the commonalities of dynamic capabilities (DCs) across firms and identify their idiosyncratic practices within firms – an under‐researched area within the strategic management and related innovation management literature. Although the existing research has attempted to identify commonalities of DCs across firms, there is hardly any research on specific practices within firms identified under those commonalities. We address this critical research problem to understand how firms can develop and deploy idiosyncratic practices of DCs but also align such firm‐specific practices with common best practices of DCs across firms. Based on a mixed methods study, we first conceptualize and empirically examine the commonalities of DCs across firms using quantitative survey data from 113 UK high‐tech SMEs. This is followed by identifying specificities of developing and applying DCs within firms based on qualitative interview data from 20 UK high‐tech SMEs. Our findings reveal that the commonalities of DCs are manifested in two components: absorptive capability and transformative capability, and that these two capabilities are embedded in specific practices within firms. Therefore, this study contributes to the understanding of how DCs are developed and deployed in the specific context of firms but also aligned with ‘best practices’ of DCs across firms.
İşletmelerin uluslararası pazarlara giriş süreçleri incelendiğinde, geleneksel uluslararasılaşma süreçlerinden geçtikten sonra uluslararası işletme kimliğine sahip oldukları görülmektedir. Bununla birlikte gelişen teknoloji ve ulaşım imkanları, yöneticilerin ve çalışanların vizyonları, firmaların kaynak bulma gibi konulardaki çeşitliliği ve kolaylığı gibi etkenler kuruluşlarından kısa bir süre sonra uluslararası pazarlarda faaliyet gösteren "Küresel Doğan İşletmelerin" ortaya çıkmasına yardımcı olmuştur. Ülkemizde ve dünyada sayısı gittikçe artan "Küresel Doğan İşletmeler" geleneksel uluslararasılaşma sürecini yaşayan işletmelerden birtakım farklılıklar göstermektedirler. Bu çalışmada işletmelerin geleneksel olarak uluslararası pazarlara giriş süreçleri üzerinde durulmakta, ayrıca "Küresel Doğan İşletmeler" üzerine yapılan araştırmalar çerçevesinde bu işletmelerin ülkemizdeki ve dünyadaki gelişimi, işletmelerin sahip olduğu özellikler ve başarı nedenleri ortaya koyulmakta ve bu işletmelerin gelişimi ile ilgili önerilerde bulunulmaktadır.
ABSTRACT
When the processes of entry of enterprises into international markets are examined, it is seen that they have international business identity after passing through traditional internationalization processes. Also factors such as developing technology and transportation opportunities, visions of managers and employees, the diversity and convenience of firms such as finding resources helped to bring up the "Born-Global Firms", which operates in international markets a short time after their establishment. Born-Global firms, which are increasing in our country and in the world, show some differences from the enterprises experiencing the traditional internationalization process. In this study, it is emphasized on the process of entry of enterprises into international markets traditionally, also in this study in the framework of the research on "born-global firms" the developments of these enterprises in our country and in the world, the characteristics and success reasons of the enterprises are releaved and suggestions are made about the development of these enterprises.
Interfirm collaboration and exchange relationships are fundamental to how value is created, managed, and exchanged between firms. In this paper we first identify three major research themes (nature, governance, and outcomes) that existing research has focused on and then propose three structural shifts (technology, platforms, and globalization) that might influence nature, governance, and outcomes associated with interfirm collaboration. We also synthesize a research agenda for the future and develop multiple research propositions that might become the foundation to integrate the structural shifts into research on interfirm collaboration. We provide guidance on how existing theories can help scholars address new research questions arising due to the structural shifts. Finally, we provide insights to managers on the type of data that they need to access to make more effective decisions related to interfirm collaboration in a dynamic business environment.
Born globals, recently established firms that obtain a substantial share of their revenue from foreign markets, can help strengthen countries’ economic vitality and increase innovation levels. The extent of born global formation varies considerably across countries, yet it is unclear why this is the case. Drawing on the neoconfigurational institutional perspective, we develop a typology of institutional contexts associated with high born global formation rates. We posit that high rates of born global formation occur where institutional features favorable to border-spanning activities complement institutional features conducive to entrepreneurial activity, thus forming an institutional configuration that enables, equips, and motivates more societal members to launch born globals. Accordingly, we hypothesize a primary institutional configuration where international transaction facilitators, entrepreneurial educational capital, and entrepreneurial norms combine to propel born global formation. Further, we draw on the internationalization literature to propose two alternative types of institutional configurations conducive to born global formation. These two types provide functional substitutes for the primary type and are distinctly propelled by (1) escapism from low-quality public governance institutions or (2) immigrant entrepreneurship. Fuzzy-set qualitative comparative analysis on data from 66 countries supports our typology and illustrates why born global activity may thrive even in contexts with institutional weaknesses. Our study develops a neoconfigurational model to advance a holistic understanding of the born global phenomenon’s theoretical drivers, contributing to research on comparative capitalism and international entrepreneurship.
Con la aparición del internet y su penetración en la población mundial, las empresas han tenido que cambiar sus estrategias para comercializar sus productos o servicios, estos cambios también conciernen a las PYMES, que deben de elaborar estrategias digitales si desean mantenerse competitivas en este mundo digital, sin embargo, las PYMES enfrentan obstáculos diferentes a las empresas grandes, por lo que deben de adoptar estrategias particulares para hacer frente a estos cambios. En el presente trabajo se elaboró una revisión literaria minuciosa con el objetivo de identificar en la literatura aquellas estrategias digitales que tienen que adoptar las PYMES. Se identifican tres grandes dimensiones en las que se agrupan las estrategias: producto, ambiente y organización. Además, se encuentran diferentes estrategias para que las PYMES manteniendo sus recursos puedan internacionalizarse, haciendo a éstas más competitivas. Una vez que las PYMES hayan pasado por un proceso de tecnificación e innovación pueden integrarse a los mercados digitales con gran facilidad y estar a la par de sus contrapartes más grandes.
Geçtiğimiz yüzyılda küreselleşmenin çok yoğun olarak etkilediği KOBİ’lerin bir kısmı küreselleşmenin bireyler, işletmeler ve ağlar üzerindeki pozitif etkilerini çok hızlı bir biçimde fırsata çevirmiş ve kısıtlı finansal kaynaklarına rağmen kuruluşlarıyla beraber veya takip eden çok kısa süreler içinde uluslararası faaliyetlerde bulunmaya başlayabilmişlerdir. Bu değişimle hızlı uluslararasılaşan işletmeler literatürde en sık olarak “Küresel Doğan İşletmeler” adıyla anılmaktadır.
Bu çalışma ile gelişen teknoloji ve internetin sağladığı imkânlarla çok daha hızlı uluslararasılaşabilen küresel doğan işletmelerin web sitesi kullanımları ile e-pazarlama odaklılıklarının incelenmesi amaçlanmıştır.
Çalışma, çoklu örnek olay araştırma desenine uygun olarak, konuyu aynı çerçeve
içinde farklı açılardan incelemeye olanak sağlayacak şekilde farklı yöntemler kullanılarak tasarlanmıştır. Araştırma üç temel aşamadan oluşmaktadır. İlk aşamada Türkiye’de KOBİ’lerin uluslararasılaşması ile ilgili çeşitli kurum ve kuruluşlardan üst düzey yetkililer ile derinlemesine
görüşmeler gerçekleştirilmiştir. İkinci aşamada küresel doğan işletme profiline uygunluğu filtre sorularla belirlenmiş olan 31 adet işletmenin üst düzey yetkilisi ile mevcut literatür ve ilk mülakatlardan elde edilen verilere uygun olarak hazırlanmış olan yarı yapılandırılmış form aracılığıyla görüşmeler yapılmış ve daha sonra e-pazarlama odaklılık anketi uygulanmıştır. Üçüncü aşamada ise, ilk iki aşamada elde edilen veriler ışığında oluşturulan kodlama formu ile söz konusu işletmelerin web siteleri, önceden kodlama ile ilgili eğitim verilen iki farklı kodlayıcı tarafından içerik analizine tabi tutulmuştur. Çalışma sonunda görüşme çıktıları, e-pazarlama odaklılık anketi ve içerik analizi sonucunda elde edilen bulgular birbirleriyle karşılaştırılmak suretiyle analiz edilmiştir.
Çalışma, Türkiye’de uluslararası girişimci niteliğindeki küresel doğan işletmelerin büyük bölümünün basit düzeyde e-pazarlama odaklı olduklarını destekler niteliktedir. İncelenen işletmelerin, e-pazarlama odaklılık ve etkin web sitesi kullanımı gerekliliğini zihinsel olarak kabul etmelerine karşılık; e-pazarlama uygulamalarına yönelik alt yapı oluşturma, geliştirme ve uygulamada yeterince aktif davranmadıkları gözlenmiştir. İşletmelerin büyük çoğunluğu belirgin e-pazarlama stratejilerine sahip olmadıkları gibi, bu işletmeler için web siteleri ve ilişkili internet fonksiyonları, çoğunlukla ürün ve işletme bilgilerini aktarmak için kullanılan sınırlı etkileşim araçlarıdır.
Purpose
This study aims to examine whether and how cultural (dis) similarity between business entities enhances or impairs the development of commitment in the trust building process in industrial importer-foreign supplier relationships.
Design/methodology/approach
Drawing on theoretical lenses of transaction cost economics, resource-based view and dynamic capability view, this study investigates how cultural (dis)similarity moderates the effects of opportunism, transaction-specific investment (TSI), the relative advantage of importing and communication on commitment, leading to building trust in business relationships. Using structural equation modeling and moderated regression analysis, the study tested several predicted effects using a sample of 154 industrial importers drawn from a developing country in Asia.
Findings
A key finding of the study suggests that supplier opportunism comes into play and is negatively associated with industrial importer commitment as cultural dissimilarity increases. For culturally similar countries, opportunism does not affect commitment. Conversely, TSI has a positive effect on commitment for culturally similar countries; for dissimilar countries, TSI has no effect. The study also corroborates several additional hypotheses prevalent in the literature.
Research limitations/implications
Cross-sectional data rather than longitudinal data, single country rather than multi-country perspectives and data from the importer’s side rather than from both importer and exporter may affect generalizability. Future research ought to address these issues to provide further insights.
Originality/value
The paper enriches the literature and extends the nomological network for international business theory by introducing the moderating effect of business cultural similarity in building commitment. Managerial perspectives are also gleaned from the findings.
International entrepreneurship, which means the development of the local market to the foreign market, is a key driver for the growth of the firm and gaining a sustainable competitive advantage. A review of the literature shows that few studies have addressed the dynamic capabilities of international entrepreneurship. The purpose of this study is to investigate the impact of international networking capability on the firm’s international performance by considering the mediating role of dynamic entrepreneurial capabilities (foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability). The population of this research is Iranian software development companies including members of the Iranian Informatics Association, the Association of Iranian Mobile Application Developers, and the Association of Iranian Software Developers and Exporters. A total of 200 firms were selected as the final sample of this study. This research is a cross-sectional survey in which the data collected are analysed using the SEM-PLS approach. The results of this study indicate that although international networking capability has a positive effect on foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability, its direct impact on the firm’s international performance is not confirmed. Besides, based on the results, foreign market knowledge capability, adaptive capability, and international entrepreneurial opportunity recognition capability have a positive and favourable effect on a firm’s international performance. The implications of this research will help firm managers to identify and develop the capabilities needed for international entrepreneurship.
RESUMO O artigo analisa um tipo emergente de novo empreendimento internacional, a Borderless Firm (BF), com base em estudo de caso de uma jovem empresa empreendedora brasileira que se enquadra nas características distintivas deste tipo de empresa. Investigou-se como ocorreu o processo de estabelecimento de cada uma das atividades coordenadas internacionalmente, buscando entender as motivações dos empreendedores e a relevância das redes de relacionamento em sua trajetória. O caso contribui para corroborar certos aspectos desta nova concepção de firma empreendedora internacional, identificando a diversidade de motivos que influenciam as decisões de internacionalização de uma BF, a alternância entre as lógicas de controle e causalidade que parecem guiar esse processo e a importância das redes de relacionamento. No que se refere às redes de relacionamento, evidencia-se não só o uso de redes pré-existentes à concepção da empresa, mas também o processo de construção de novos relacionamentos necessários à configuração global da cadeia de valor da empresa, pautada na coordenação de atividades geograficamente dispersas. Palavras-chave: INV; Empresa sem Fronteiras; Cadeia de Valor Global; Internacionalização.
This paper examines the dynamics of business networks, that is, how these inter-organisational networks grow and decline. Three rival theories are investigated: predetermined sequence of stages, evolution of unpredictable states and joinings theory which focus on positioning, repositioning and exit. A case study methodology was used for data collection and analysis. Data were collected from in-depth interviews with network managers/owners of firms networking with other overseas firms entering into Australian and Asian markets. The findings revealed that inter-firm network development is an evolution of unpredictable states rather than a predetermined sequence of irreversible stages. In turn, a six “states” model of inter-firm network development was formulated from data. Implications for managerial practices and further research are advanced.
This paper examines the impact of culture on inter-firm network development in international marketing. Three research questions about the influence of culture on network development were developed from the literature to focus case data collection and analysis. The data were collected from in-depth interviews with network managers/owners of firms networking with other overseas firms entering into Australian and Asian markets. Differences and similarities between how overseas Chinese and Australian cultures impact on network development and strategies for developing and maintaining quality and long-term relationship in cross-cultural networks were identified. Implications for practice emphasise the importance of cultural adaptation.
This research focuses on creating a theory of the "organizational advantage," a new concept identified within business and management. Using social capital research as a foundation for this theory, three of the study's objectives are identified: 1) incorporate different aspects of social capital to identify three common dimensions; 2) explain the role of each dimension in the process of creating and exchanging knowledge; and 3) maintain the belief that organizations are capable of creating extraordinary amounts of social capital on all three dimensions. Additionally, the relationship between social capital and intellectual capital is explored, as is the impact of this relationship upon a firm's perceived organizational advantage. In order for exchange and combination of resources to occur as a means of creating value, the research identifies three necessary conditions, including the opportunity for exchange and combination to occur, the expectation that exchange and combination generates value, and the motivation that exchange and combination in some way will be productive. This research further identifies a fourth condition, combination capability, as a significant factor in value creation. Due to social capital's influence upon the conditions needed for exchange and combination, social capital aids in the creation of intellectual capital. The research further hypothesizes that a firm's ability to create and utilize social capital contributes to performance differences among firms. Several limitations are identified, including omission of the negative impact of social capital upon a firm and the costs associated with creating and preserving a firm's social capital. The findings of the study are generalized to other institutional situations, and areas for future research are identified. (AKP)
International entrepreneurship (IE) research has commonly neglected significant perspectives applied by international business scholars. Explanations for the emergence and growth of international entrepreneurial firms largely focus on the resource-based view and the network perspective. While these approaches are useful, we suggest that IE would benefit significantly from a greater emphasis on its international nature. Therefore, theories of international business should be employed in conjunction with other approaches in order to appropriately emphasize the international character, holistically study the IE notion, and considerably broaden the scope of IE examination. Suggestions for relevant research directions are discussed.
The objective of this paper is to review the literature on how networks can be used in developing countries to encounter export-marketing problems. Several case studies of export-grouping and subcontracting networks, involving small- and medium-sized enterprises in developed and underdeveloped countries, are reviewed. The paper presents a qualitative model that identifies the determining factors for successful export network organisations: a clearly defined market problem or market opportunity; a willingness to respond together; development of solidarity, coherence and commitment; initiating foreign market activities. This model is useful to study similar initiatives in developing countries.
The paper explores the complexity of organisational strategies and relationships within an industrial supply chain. Whilst a considerable body of literature exists on inter-organisational relationships (IORs), our assertion is that much of this takes an overly deterministic view of the complex and sometimes conflicting situations that profoundly affect an organisation's (and, indeed, a network's) ability to perform effectively. Thus we turn for insight to literature beyond the traditional marketing arena, i.e.to sociology and organisational science.
On the basis of empirical research, a model of the internationalization process of the firm is developed. The model focuses on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets. In particular, attention is concentrated on the increasing involvement in the individual foreign country.© 1977 JIBS. Journal of International Business Studies (1977) 8, 23–32
The article by Oviatt and McDougall threw the spotlight on international entrepreneurs, on international new ventures, and on their importance in the globalising world economy. Recognising the rich theoretical implications of this phenomenon, they mounted a challenge to received internationalisation process theories and established a new and exciting research theme, that of international entrepreneurship. This article reviews the impact of their contribution and discusses new research themes raised by their challenge to the process theories of internationalisation. Journal of International Business Studies (2005) 36, 9–19. doi:10.1057/palgrave.jibs.8400117
We investigate born-global firms as early adopters of internationalization – that is, companies that expand into foreign markets and exhibit international business prowess and superior performance, from or near their founding. Our explication highlights the critical role of innovative culture, as well as knowledge and capabilities, in this unique breed of international, entrepreneurial firm. Case studies are analyzed to better understand the early internationalization phenomenon and reveal key orientations and strategies that engender international success among these innovative firms. Case findings are then validated in a survey-based study. Despite the scarce resources typical of young firms, our findings reveal that born-global firms leverage a distinctive mix of orientations and strategies that allow them to succeed in diverse international markets. Findings have important implications for the internationalization of contemporary firms. Journal of International Business Studies (2004) 35, 124–141. doi:10.1057/palgrave.jibs.8400071
Why are some small and medium-sized enterprises (SMEs) more successful in selling outside their domestic markets than are other SMEs in the same industry? Although the traditional explanation is that firms can gain valuable knowledge and resources as they become older and larger, small and young firms are not necessarily disadvantaged if they develop other mechanisms to acquire the requisite knowledge and resources. We examine the role of the management team's international experience as such a mechanism, for the internationalization of Canadian software product firms. We show that internationally experienced management teams have a greater propensity to develop foreign strategic partners and to delay less in obtaining foreign sales after start-up, and that these behaviors are associated with a higher degree of internationalization.© 1997 JIBS. Journal of International Business Studies (1997) 28, 807–825
Scholars of the theory of the firm have begun to emphasize the sources and conditions of what has been described as “the organizational advantage,” rather than focus on the causes and consequences of market failure. Typically, researchers see such organizational advantage as accruing from the particular capabilities organizations have for creating and sharing knowledge. In this article we seek to contribute to this body of work by developing the following arguments: (1) social capital facilitates the creation of new intellectual capital; (2) organizations, as institutional settings, are conducive to the development of high levels of social capital; and (3) it is because of their more dense social capital that firms, within certain limits, have an advantage over markets in creating and sharing intellectual capital. We present a model that incorporates this overall argument in the form of a series of hypothesized relationships between different dimensions of social capital and the main mechanisms and processes necessary for the creation of intellectual capital.
Terrestrial arthropod communities remain poorly described for riparian ecosystems of the arid southwestern United States, and the effects of extensive river regulation and habitat alteration on these potentially important invertebrates are largely unknown. Beginning in 1991, surface-active arthropods were trapped at two riparian sites along the Rio Grande, in central New Mexico, for 2 years. One site was then experimentally flooded from mid-May to mid-June for each of the next 3 years to simulate historic, low intensity flooding, after which arthropod collections were continued. These primary sites. located outside the riverside levee, and isolated from flooding for about 50 years prior to the experiment, were compared with a naturally flooded site and a second non-flooded reference. Experimental flooding and observations of the naturally flooded site indicated that flooding did not affect total taxonomic richness, nor richness of spiders, beetles or ante. However, flooding may have slightly increased the number of carabid beetle taxa present. Flooding altered the overall composition for all taxa, insects, beetles and carabid beetles. Spider taxa composition may be insensitive to flooding, while ant responses were not clear. Abundance of terrestrial isopods and spiders decreased after flooding, while overall beetle abundance did not change. Abundance of crickets and carabid beetles increased, but the response was delayed until after the second flood. Changes in taxa composition and abundance after experimental flooding were generally consistent with arthropod community structure observed at a nearby naturally flooded site. This similarity suggests that reorganization of the terrestrial arthropod community may follow restoration of flooding to this riparian ecosystem. Copyright (C) 2001 John Wiley & Sons, Ltd.
This study examined the antecedents and outcomes of the internationalization of 61 new high-potential ventures in the U.S. The results indicate that internationalization is directly related to the use of product differentiation as a source of competitive advantage, the international work experience of the board of directors, and size at the point of the IPO. The use of low cost, product differentiation, or innovation as a source of competitive advantage, and size at the point of the IPO were directly related to sales growth in the two-year period following the IPO. Finally, the level of Internationalization at the time of the IPO is positively related to earnings two years later.
The formation of organizations that are international from inception-international new ventures-is an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises. A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory. That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources.
Executive Overview /f (he mouse connected fo your personal computer is made by Logitech, Inc.—and there's a good chance it is—then you're plugged into the growing phenomenon of global start-ups.' Most people expect new ventures to begin domesticaiiy and for their international operations to evolve slowly, but global start-ups are international at inception. Logitech was founded in 1982 by a Swiss and two Italians who had global aspirations from the beginning. The venture was headquartered in both California and Switzerland. The firm's R&D and manufacturing were also split between California and Switzerland, and then quickly spread to Taiwan and Ireland. By 1989, it had revenues of $140 million and 30 percent of the worldwide market for those ubiquitous computer rodents. Was the Logitech experience unique, or might there be a pattern underlying the creation dynamics and success characteristics of global start-ups? To answer these questions, we analyzed twelve such start-ups, and personally interviewed several of their founders.
Creativity is a driver of competitive advantage. It is found in firms of all sizes, but perhaps has greatest impact within the entrepreneurial smaller firm. This paper discusses the origins of the study of creativity, from social psychology to the business discipline. Creativity is then viewed as a key competency at the Marketing/Entrepreneurship Interface, linked with related issues such as innovation, vision, leadership and motivation. The benefits of developing creative competencies are presented and linked to a knowledge entrepreneur's set of 21st century business skills. A model of creativity as competitive advantage is developed, built from sets of internal and external factors impinging upon firm and managerial performance. Finally, a series of recommendations for both marketing practitioners and academics are made, focusing on the need to challenge convention in order to progress ideas, products and services into the new century.
This study examines the tasks, processes, and frameworks central to performance assessment in collaborative research organizations. The domain of the study is the partnered learning approach to research and development (R&D) management. The empirical results highlight relationships between context (center scale) and performance (value perceived by industry sponsors) in such R&D collaborations. Insights from this research are broadly applicable to the maintenance of alliances among firms involved in collaborative R&D and are generalizable to that context. Data gathered from a national population of 58 National Science Foundation (NSF) sponsored centers over a 3-year period reveal significant evolutionary patterns in the development of collaborative relationships. Successful industry university consortia leverage four core process relationships: (1) the creation of research capacity yielding advances in process and product knowledge; (2) technology transfer behaviors within the participants' organizations; (3) participant satisfaction with the outcomes; and (4) the continuity of industry sponsor support, i.e., commitment to the collaboration.
Technology-oriented companies involved in rapidly changing markets are interested in the value of collaborative efforts aimed at the realization of shared benefits, while spreading the costs and risks across multiple partners. The experiences and insights of participants in such ventures can contribute to the understanding of how to build more productive alliances. This study examines the project evaluation processes employed by the most successful industry–university research centers sponsored by the National Science Foundation. The delivery of highly satisfying research programs, as indicated by the industrial representatives, is defined as being successful. This paper focuses on the process management issues involved in the formulation and evaluation of research proposals, structural advantages and liabilities associated with the process, as well as the conditions/contexts that favor their application. These processes are strategically significant because they define the organization's research agenda, focus resource allocations by linking capabilities and commitments, and frame the performance assessment process.
Argues that the unidirectional measurement and evaluation of the trust in a specific business relationship is not enough to understand the trust between two actors in a dyadic business relationship. Furthermore, mutual trust may not always be sufficient to understand the trust in a specific dyadic business relationship. The incorporation of a third actor may improve the understanding of trust in dyadic business relationships. Therefore, a method is applied to analyze the dynamics of trust in triadic business networks.
The objective of the research was to discover the chief determinants of entrepreneurship, the process by which organizations renew themselves and their markets by pioneering, innovation, and risk taking. Some authors have argued that personality factors of the leader are what determine entrepreneurship, others have highlighted the role played by the structure of the organization, while a final group have pointed to the importance of strategy making. We believed that the manner and extent to which entrepreneurship would be influenced by all of these factors would in large measure depend upon the nature of the organization. Based upon the work of a number of authors we derived a crude typology of firms: Simple firms are small and their power is centralized at the top. Planning firms are bigger, their goal being smooth and efficient operation through the use of formal controls and plans. Organic firms strive to be adaptive to their environments, emphasizing expertise-based power and open communications. The predictiveness of the typology was established upon a sample of 52 firms using hypothesis-testing and analysis of variance techniques. We conjectured that in Simple firms entrepreneurship would be determined by the characteristics of the leader; in Planning firms it would be facilitated by explicit and well integrated product-market strategies, and in Organic firms it would be a function of environment and structure. These hypotheses were largely borne out by correlational and multiple regression analyses. Any programs which aim to stimulate entrepreneurship would benefit greatly from tailoring recommendations to the nature of the target firms.
This paper discusses the findings from an investigation into the internationalisation strategies of 'high performing' UK high-tech small and medium-sized enterprises. Findings from 12 in-depth interviews suggest that strategy formation is not as systematic as some previous studies, notably those that focus on the 'stage' models, suggest. Management teams anticipate and react to internal and external factors in various ways; this affects the way in which opportunity recognition and exploitation takes place. This ranges from planned strategy formation through to opportunistic behaviour. The results suggest that while support for certain existing theories namely the resource based view, networking, and contingency factors was evident, no single theory could fully explain entrepreneurial decisions. In particular, 'serendipity' as part of the contingency view may be an under researched area. The findings support the literature that has suggested a more holistic view should be undertaken in international entrepreneurship research.
With a view to increasing knowledge within the emergent field of international entrepreneurship, we examine 38 studies from the last decade that deal with international new ventures, global start-ups and born-global firms. The methodology used for this synthetic review allow us to analyze a large number of recent, purposefully chosen studies that are compared along the following criteria: (1) main objective and type of research; (2) theoretical framework/s of reference; (3) methodological issues and (4) main findings and/or conclusions. We seek to elucidate the most relevant benefits and contributions as well as potential drawbacks, limitations or major discrepancies found in the research activities conducted to date. Finally, some suggestions and implications are provided in the form of a new research model and future research directions.
The seeming absence of theoretical foundations in the international entrepreneurship (IE) field significantly accounts for the fragmentation of research in the area. We seek to address this deficiency through an exploration of the IE concept in the overall context in which it is embedded, namely organizational culture. We develop and discuss a conceptual framework of an International Entrepreneurial Culture, which consists of six interrelated dimensions: international market orientation, international learning orientation, international innovation propensity, international risk attitude, international networking orientation, and international motivation.
Firm internationalisation has long been regarded as an incremental process, wherein firms gravitate towards psychologically close markets and increase commitment to international markets in a gradual, step-wise, manner through a series of evolutionary stages. However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by born global firms. Typically, these are smaller entrepreneurial firms that internationalise from inception, or start to shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base. In addition, the authors have found evidence of firms supporting this born global pattern of behaviour but also evidence of firms that suddenly internationalise after a long period of focusing on the domestic market. These born-again globals appear to be influenced by critical events that provide them with additional human or financial resources, such as changes in ownership/management, being taken over by another company with international networks, or themselves acquiring such a firm. Based upon the extant literature and our own research, we propose an integrative model that recognises the existence of different internationalisation pathways. We then explore differences in behaviour due to the firm's internationalisation trajectory and discuss the strategic and public policy implications.
Providing a complete portal to the world of case study research, the Fourth Edition of Robert K. Yin's bestselling text Case Study Research offers comprehensive coverage of the design and use of the case study method as a valid research tool. This thoroughly revised text now covers more than 50 case studies (approximately 25% new), gives fresh attention to quantitative analyses, discusses more fully the use of mixed methods research designs, and includes new methodological insights. The book's coverage of case study research and how it is applied in practice gives readers access to exemplary case studies drawn from a wide variety of academic and applied fields.Key Features of the Fourth Edition Highlights each specific research feature through 44 boxed vignettes that feature previously published case studies Provides methodological insights to show the similarities between case studies and other social science methods Suggests a three-stage approach to help readers define the initial questions they will consider in their own case study research Covers new material on human subjects protection, the role of Institutional Review Boards, and the interplay between obtaining IRB approval and the final development of the case study protocol and conduct of a pilot case Includes an overall graphic of the entire case study research process at the beginning of the book, then highlights the steps in the process through graphics that appear at the outset of all the chapters that follow Offers in-text learning aids including 'tips' that pose key questions and answers at the beginning of each chapter, practical exercises, endnotes, and a new cross-referencing tableCase Study Research, Fourth Edition is ideal for courses in departments of Education, Business and Management, Nursing and Public Health, Public Administration, Anthropology, Sociology, and Political Science.
This paper describes the process of inducting theory using case studies-from specifying the research questions to reaching closure. Some features of the process, such as problem definition and construct validation, are similar to hypothesis-testing research. Others, such as within-case analysis and replication logic, are unique to the inductive, case-oriented process. Overall, the process described here is highly iterative and tightly linked to data. This research approach is especially appropriate in new topic areas. The resultant theory is often novel, testable, and empirically valid. Finally, framebreaking insights, the tests of good theory (e.g., parsimony, logical coherence), and convincing grounding in the evidence are the key criteria for evaluating this type of research.
International new ventures (INVs) represent a growing and important type of start-up. An INV is defined as a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries (Oviatt and McDougall 1994). Their increasing prevalence and important role in international competition indicates a need for greater understanding of these new ventures (Oviatt and McDougall 1994).Logitech, as described in a case study by Alahuhta (1990), is a vivid example of an INV. Its founders were from two different countries and had a global vision for the company from its inception. The venture, which produces peripheral devices for personal computers, established headquarters in both Switzerland and the U.S. Manufacturing and R&D were split between the U.S. and Switzerland, and then quickly spread to Taiwan and Ireland. The venture's first commercial contract was with a Japanese company.Using 24 case studies of INVs, we found that their formation process is not explained by existing theories from the field of international business. Specifically, neither monopolistic advantage theory, product cycle theory, stage theory of internationalization, oligopolistic reaction theory, nor internalization theory can explain the formation process of INVs. These theories fail because they assume that firms become international long after they have been formed, and they therefore highlight large, mature firms. They also focus too much on the firm level and largely ignore the individual and small group level of analysis (i.e., the entrepreneur and his or her network of business alliances).We propose that an explanation for the formation process of INVs must answer three questions: (1) who are the founders of INVs? (2) why do these entrepreneurs choose to compete internationally rather than just in their home countries? and (3) what form do their international business activities take?Who are the founders of INVs? We argue that founders of INVs are individuals who see opportunities from establishing ventures that operate across national borders. They are “alert” to the possibilities of combining resources from different national markets because of the competencies (networks, knowledge, and background) that they have developed from their earlier activities. Following the logic of the resource-based view of the firm, we argue that the possession of these competencies is not matched by other entrepreneurs. Only the entrepreneur possessing these competencies is able to combine a particular set of resources across national borders and form a given INV.Why do these entrepreneurs choose to compete internationally rather than just in their home countries? The founders of INVs recognize they must create international business competencies from the time of venture formation. Otherwise, the venture may become path-dependent on the development of domestic competencies and the entrepreneur will find it difficult to change strategic direction when international expansion eventually becomes necessary. As the founder of one INV explained, “The advantage of starting internationally is that you establish an international spirit from the very beginning” (Mamis 1989:38).What form do their international business activities take? Founders of INVs prefer to use hybrid structures (i.e., strategic alliances and networks) for their international activities as a way to overcome the usual poverty of resources at the time of start-up.This study has important implications for the practice of management. In financing decisions relating to INVs, venture capitalists and other venture financiers should look for entrepreneurs who have a global vision, international business competence, and an established international network. When entrepreneurs start INVs they should create hybrid structures to preserve scarce resources. Finally, given the path-dependence of competence development, founders of new ventures should consider whether establishing a domestic new venture with plans to later internationalize will be as successful a strategy as establishing a new venture that is international from inception.
The importance of inter-personal relationships has increasingly been acknowledged in entrepreneurship and international business research. This paper focuses on the role of entrepreneurs' inter-personal relationships in the internationalization process, addressing three broad questions: what are the functions of relationships in the internationalization process; from where do the important relationships originate; and what strategies of relationship development do entrepreneurs pursue? These issues are explored in the important relationships of three successful international entrepreneurs that are examined in depth. The cases indicate that the functions of inter-personal relationships in the internationalization process are much more profound than previous research would indicate. They can direct strategy and transform the firm, not just provide information and access to networks. The origins of the relationships are wide, spanning ‘social/personal’ and ‘business’ situations. For entrepreneurs, the ‘planned’ approach of relationships and network development in foreign markets advocated in much of the normative marketing literature may not be relevant. Instead, entrepreneurs might look to strong, deep, inter-personal relationships from which to build transformational international development of their firms.
Small and medium enterprises (SMEs) have begun to play a critical role in international trade. Statistics from the Organization for Economic Cooperation and Development (OECD) and other sources indicate that SMEs now account for a very substantial proportion of exports from most industrialized nations. But very little is known about the effect of having an international entrepreneurial orientation, or the role of specific strategies associated with this construct, on the foreign performance of such firms. Using data from an empirical study of SMEs, we devise a structural model that reveals the role of international entrepreneurial orientation, key strategic activities, and the collective effect of these constructs on the international performance of the modern, international SME. These findings and their implications for scholars and managers are discussed.
Technology-oriented companies involved in rapidly changing markets are interested in the value of collaborative efforts aimed at the realization of shared benefits, while spreading the costs and risks across multiple partners. The experiences and insights of participants in such ventures can contribute to the understanding of how to build more productive alliances. This study examines the project evaluation processes employed by the most successful industry–university research centers sponsored by the National Science Foundation. The delivery of highly satisfying research programs, as indicated by the industrial representatives, is defined as being successful. This paper focuses on the process management issues involved in the formulation and evaluation of research proposals, structural advantages and liabilities associated with the process, as well as the conditions/contexts that favor their application. These processes are strategically significant because they define the organization's research agenda, focus resource allocations by linking capabilities and commitments, and frame the performance assessment process.
Transaction and relational approaches to marketing have been promoted as alternative forms but recent evidence suggests that they may coexist. We explore this in the context of China. If firms operating in a highly relational society, such as China, exhibit transactional behavior, these two approaches must be compatible. We argue that Chinese values give rise to business practices consistent with both transactional and relational perspectives. These are summarized in six propositions for research. Theory building and managerial practice could benefit from thinking in terms of how elements from the two perspectives can be brought together rather than remain as alternatives.
New agents directed against molecular targets have now been tested in large prospectively randomized clinical trials for patients with untreated advanced non-small cell lung cancer (NSCLC). The trials have included small molecule inhibitors of receptor tyrosine kinases (gefitinib and erlontinib), monoclonal antibodies directed against either the ligands (bevicizumab against vascular endothelial growth factor) or their receptors (trastuzumab against ErbB2) and antisense nucleotides directed against mRNA coding for molecular targets (ISIS 3521 against protein kinase C alpha). The largest mature trials have included agents directed against ErbB1 (epidermal growth factor receptor). Two different small molecule inhibitors of erbB1 (gefitinib and erlontinib) and have been tested in 4 large international randomized trials. Two trials treated patients with advanced NSCLC with either gemcitabine and cisplatin or the same chemotherapy drugs combined with two different doses of gefitinib or one dose of erlontinib (INTACT 1 and TALENT). The other two trials treated patients with advanced NSCLC with either paclitaxel and carboplatin or the same chemotherapy drugs combined with either one of two doses of gefitinib or a single dose of erlontinib (INTACT 2 or TRIBUTE respectively). The results of INTACT 1 and INTACT2 showed no significant difference in survival between those treated with conventional combination chemotherapy and those treated with the same chemotherapy plus gefitinib. The results of the TRIBUTE and TALENT studies showed their primary endpoints of improving overall survival were not met. The monoclonal antibody, bevacizumab, is being tested in an ongoing clinical trial. The trial will compare the outcome of patients with untreated advanced adenocarcinoma of the lung treated with paclitaxel plus carboplatin to those treated with the same chemotherapy drugs plus bevacizumab. The results are scheduled to be available in 2005–2006. Although the initial trials adding newly developed molecular targeted agents have not shown initial success when added to conventional combination chemotherapy, further clinical trials are needed to ultimately define their role in the treatment of non-small cell lung cancer.
Even though outward operations such as exports and foreign investment have received most of the attention so far, the internationalization of businesses also includes activities that are inwardly oriented. Inward activities like purchases of machinery, the procurement of raw materials and semifinished goods provide opportunities for building relations with foreign actors. They also offer opportunities to learn about foreign trade techniques and ways of using various operation modes, and by active use of such knowledge companies should be in a better position to start or extend outward foreign operations. This paper presents a case study of the Norwegian company Moelven Industrier ASA and its operations in the Russian market. It shows that the creation and utilization of knowledge through inward–outward connections face many obstacles and that, in Moelven's case, the full potential of such connections was seldom realized.
The present study contrasts the impact of industry- and firm-specific factors on the profitability of business firms using survey and census data on a sample of Greek manufacturing firms. Industry effects are represented using industry concentration, product differentiation, and stage of life cycle. Firm factors include assets and dynamic capabilities. These assets are related to marketing, production, technology, and finance. While dynamic capabilities are related to the managerial processes of coordination/integration, learning, and the capacity to change. The results obtained provide strong evidence that firm factors exert a much stronger impact than industry, in both SMEs and large enterprises. The results also offer important insights on the differential impact of specific determinants of profitability between SMEs and large firms.
This paper provides an overview of the implications for strategizing offered by an industrial network perspective and a comparison of this view with strategic management thinking. We argue that it is crucial for a company to relate its activities to those of other firms in order to enhance its performance, and it is through the continuous combining and recombining of existing resources that new resource dimensions are identified and further developed within business relationships. From the standpoint of a single company, strategizing from an industrial network perspective implies that the heterogeneity of resources and interdependencies between activities across company boundaries, as well as the organized collaboration among the companies involved, must be considered simultaneously.
Collaborative relationships in business markets are of growing importance to customers and suppliers alike. Customers need to decide whether to invest in a new supplier relationship, to maintain and develop a valued relationship, or to divest from a low-value relationship. Suppliers, in turn, face growing commoditization of products and seek to differentiate themselves through relationships. The measurement of value creation in buyer–seller relationships is still in its infancy, and a sound understanding of how firms create and deliver value in business relationships is needed. Emerging studies investigate relationship value based on dimensions derived from theory and lack a managerial perspective. Therefore, the present research explored relationship value from a grounded theory perspective. In-depth interviews with purchasing managers identified eight value drivers in manufacturer–supplier relationships. Implications for the measurement of the concept are discussed, and directions for further research are suggested.
The born global start-up lacks resources compared to the requirement of reaching world markets. Further, the extant internationalization theories may not be adequate to indicate viable channel alternatives for born globals. The conventional way of pledging personal assets, raising resources, and expanding internationally is definitely slow and this adds to the usual business risks. Thus, the major imperative emerges that the born global must utilize large channels provided by MNCs, networks, and/or the Internet to receive substantial revenues and cash flow rapidly. These channels also provide learning, technology, and evolutionary growth. Examples of the performance of born globals, with relatively similar products, originating from Israel and Finland are used to elaborate. Also, the managerial implications for born globals, and future research areas are brought out.
For many years, research and management thinking has focused on understanding business relationships and networks. Now, the focus is shifting to managing business relationships and networks. This new approach focus poses two questions. Since networks are loosely coupled systems, to what extent are business networks manageable? Furthermore, how can a firm's ability to manage a network be characterized and measured? This paper addresses these two questions by synthesizing the current state of knowledge on management issues in networks and the contribution to managerial abilities in complex relationships. The discussion leads to a set of propositions describing the abilities firms will need to successfully manage complex business networks.
This paper focuses on identifying the factors affecting the success of social ventures operating in social settings in Israel. An exploratory qualitative field study included 33 social ventures, founded in the 1990s by individuals acting independently of their positions in other organizations. The study demonstrates eight variables as contributing to the success of the social ventures, arranged in the order of their value: (1) the entrepreneur's social network; (2) total dedication to the venture's success; (3) the capital base at the establishment stage; (4) the acceptance of the venture idea in the public discourse; (5) the composition of the venturing team, including the ratio of volunteers to salaried employees; (6) forming cooperations in the public and nonprofit sectors in the long-term; (7) the ability of the service to stand the market test; and (8) the entrepreneurs’ previous managerial experience.
Building supplier relationships and becoming more market oriented have similar building blocks and have similar effects. Strong supplier relationships tend to impact the firm's performance, in part, because the firm can respond to customer needs in a more timely fashion. Supplier relationships tend to be stronger in firms where there is cross-functional sharing of supplier and customer information. Market orientation is an organizational culture that focuses the company on generating market information, cross-functionally sharing that market information, and rapidly responding to that market information to positively impact the performance of the firm. This study explored whether the positive effects of strong supplier relationships are enhanced in market-oriented firms. Results support the notion that supplier relationships are one way of leveraging a firm's market orientation through improved customer responsiveness. Cross-functional sharing of information appears to be the link that ties market orientation and stronger supplier relationships together.
Policy-makers and practitioners are seeking to promote the development of established firms. This paper suggests they may need to target customized export programmes to the specific situational demands of established 'micro' and 'small' firms. The following broad research question is explored: are there differences between 'micro' and 'small' firms with regard to the decision to sell goods or services abroad? In 1990/91, survey responses were gathered from 621 independent businesses located in Great Britain. In 1997, a follow-on telephone survey was conducted with 150 surviving firms. This survey gathered information on the propensity to export goods or services abroad and the mode of export behaviour reported by established 'micro' as well as 'small' firms. The performance of exporting and non-exporting firms was also compared. Implications for policy-makers, practitioners and researchers are highlighted.
Organizations that are international from inception – international new ventures – form an increasingly important phenomenon that is incongruent with traditionally expected characteristics of multinational enterprises. A framework is presented that explains the phenomenon by integrating international business, entrepreneurship, and strategic management theory. That framework describes four necessary and sufficient elements for the existence of international new ventures: (1) organizational formation through internalization of some transactions, (2) strong reliance on alternative governance structures to access resources, (3) establishment of foreign location advantages, and (4) control over unique resources. Journal of International Business Studies (2005) 36, 29–41. doi:10.1057/palgrave.jibs.8400128