Article

Toward A Theory of International New Ventures

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Abstract

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.

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... Hence, it is necessary to bring out a process framework representing an internationalization strategy that best fits firms in emerging countries, of which Vietnam is a case study. There has been much theoretical research about the internationalization process with different stages in implementation, as summarized in Table 1, such as the Product Life Cycle theory (Vernon, 1966), the eclectic paradigm (Dunning, 2001), the Uppsala internationalization process (Johanson & Vahlne, 2009, 1977, international new ventures (INV; Oviatt & McDougall, 1994), the Casino model (Håkanson & Kappen, 2017) and the Springboard perspective (Luo & Tung, 2007, 2018. Most of the analyses from these theoretical approaches have focused on multinational enterprises in developed countries rather than enterprises in developing markets like Vietnam. ...
... Born-global theory, or international new ventures (INV; Oviatt & McDougall, 1994) Companies can orient to international expansion right from their inception by taking advantage of unique resources and selling output in many countries. ...
... Eight months later, Viettel continued to launch its own telecom network in Laos, expanding to new markets yearly, as shown in Figure 4. Besides the fact that it is a state-owned enterprise, that Viettel had started to consider internationalization after spending a long time doing business in the domestic market shows that the born-global model or INV framework (Oviatt & McDougall, 1994) does not correspond to Viettel's operations. ...
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With the robust development of the integrated economy, offshore investment activities of Vietnamese enterprises have become more diversified, with numerous investment industries, scales and forms of investment, economic types, and number of enterprises participating. In this article, the case of the Viettel Group is used to explain three significant issues: namely, when, where, and how a sizeable Vietnamese company expanded internationally based on the Uppsala model reformed in 2009. The case study shows some convergence and divergence in how Viettel went abroad as it selected neighboring countries and countries with uncertain conditions to build its position through market commitments. Hence, this study confirmed the usefulness and feasibility of the Uppsala 2009 framework to clarify the international process of a prominent Vietnamese enterprise.
... A second bulk of research has investigated how networks offer a key strategic mechanism for INVs to gain access to the international market and mobilize resources that small entrepreneurial firms are initially unable to develop or buy by themselves (Oviatt and McDougall 1994). Wigren-Kristoferson et al. (2022) argued that firms leverage resources from other network actors to overcome the liabilities of smallness and newness. ...
... In the course of our selection, after reviewing recent works on the matter (Coviello 2015), we adopted a definition that coalesced a broad consensus from scholars (Oviatt and McDougall 1994;p.58), referring to INVs as (a) young, internationalizing firms and new ventures launched in older, established multinationals; (b) pursuing a range of value chain activities; and (c) adopting various entry strategies, including foreign direct investment (FDI). ...
... As the focus of the research was on the use of the network in achieving a rapid pace of internationalization, the nationality of the firm was not one of the selection criteria used in the replication logic. All firms geared their businesses toward the international market from inception and complied with the definition of value chain coordination across countries (Oviatt and McDougall 1994). The purposeful selection operationalized for replication is consistent with similar studies presented in the literature conducted from a multiple-case perspective. ...
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Despite widespread recognition that an enterprise’s critical resources may extend beyond its traditional boundaries, a thin layer of empirical research has investigated the dynamics of international new ventures (INVs) in leveraging network strategies for rapid international growth. This study addresses this gap by elucidating the evolution of operational value networks that firms construct and manage during their internationalization processes. Data were collected from five nascent European INVs via a qualitative exploratory case-study methodology. The paper’s main contribution lies in gauging network evolution during the internationalization process and offering insights into the structure and interactions of INV network management. It contributes to informing our understanding of the information and knowledge flows that play a special role in the strategic management of the network of INVs. The structural factors were analyzed by looking at the type of ties forming the network and its size, density, or sparsity. The interactional network factors considered the type of relational exchanges INVs adopted during the internationalization strategies. This latter aspect was analyzed to reveal the impact of internal and external information and knowledge flows considering the type of activity (data-driven or human-led) and mode of expansion (explorative or exploitative). Seventeen propositions are articulated, contributing to the extant literature by shedding light upon how network management in young INVs evolves over time, aligning with their internationalization learning trajectories and growth phases. These findings underscore the dynamic nature of network strategies in facilitating the rapid international expansion of INVs and provide a nuanced understanding of the strategic management of knowledge and information flows within these networks.
... Although previous research on AIFs and international entrepreneurship acknowledges the entrepreneur's importance (Jones et al., 2011;Oviatt & McDougall, 1994;Zucchella, 2021), surprisingly few studies explicitly focus on the entrepreneur. 2 Many international entrepreneurship studies implicitly regard entrepreneurs as important (e.g., Knight & Cavusgil, 2004;Zucchella, 2021), but they typically merge the entrepreneur, the top management team and the firm together, treating them as the same unit of analysis (Covin & Miller, 2014). ...
... Hennart (2014) and other BM researchers (Abrahamsson et al., 2019;Brouthers et al., 2016;Child et al., 2017;Dow, 2017;Dunford et al., 2010;Kraus et al., 2017) do not explicitly investigate the potential impact of the entrepreneur on the acceleration of internationalization. However, other studies contend that top management (Hambrik & Mason, 1984;Kunisch et al., 2019) and entrepreneurs themselves play a central role in 1 We define AIFs as firms that internationalize quickly in terms of earliness, scope of foreign countries entered and international sales commitment (Knight & Cavusgil, 2004;Oviatt & McDougall, 1994). Research has also used terms such as 'international new ventures' and 'born-globals' to describe similar types of firms that feature accelerated internationalization (e.g., Hennart, 2014;Weerawardena et al., 2007). 2 For example, Jones et al.'s (2011) review of international entrepreneurship research uncovers only three articles with a focus on entrepreneurs (McGaughey, 2007;Perks & Hughes, 2008;Ruzzier et al., 2007); although these studies emphasise the entrepreneur's role in internationalization, they do not investigate the BM's role. ...
... 3 In the next sections, we review previous research and draw conclusions based on these studies; we present our positioning against the identified key articles in Table 1. Oviatt and McDougall (1994): Conceptual article Build on international entrepreneurship to create a framework for explaining the emergence of international new ventures X Knight and Cavusgil (2004): Qualitative case study and quantitative method Show that born globals (BGs) leverage a distinctive mix of international entrepreneurial and marketing orientations and strategies that allow them to succeed in diverse international markets The study examines BM innovation, not the rationale of how an organization creates, delivers and captures value. It also focuses on firm-level EO, not the entrepreneurial mindset perspective, and investigates the mediating role of BM innovation between EO and international performance, not internationalization of the firm ...
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Research suggests that accelerated internationalization is accidental and that a firm-specific business model (BM) determines which firms become accelerated internationalizers and which become gradual internationalizers. However, in analysing entrepreneurs adopting different internationalization types (accelerated and gradual) from Finland, New Zealand and Sweden, we find a complex interplay between entrepreneurs’ mindsets and emerging BM practices with respect to their internationalizing firms. These practices enable small international firms to eliminate the time and cost penalties associated with the triple liabilities of accelerated internationalization (i.e., newness, outsidership and smallness). This study contributes to the literature by reconciling the alternative explanations offered in previous research and reveals how entrepreneurs’ global and regional mindsets affect their BM practices, leading to different international trajectories. It further contributes by showing that the entrepreneur’s role may be more important than that of the BM.
... we examine research on born global firms (BGs), international new ventures (INVs), and international entrepreneurship (IE). This issue marks the 30th and 20th anniversaries, respectively, of the seminal works by Oviatt and McDougall (1994) and Knight and Cavusgil (2004). BGs and INVs represent enterprising firms that begin internationalizing at or near their founding. ...
... In the early 1990s, scholars began to notice that many small-and medium-sized enterprises (SMEs) were becoming international shortly after founding (e.g., Oviatt & McDougall, 1994). The terms "born globals" (BGs; Knight & Cavusgil, 2004) and "international new ventures" (INVs; Oviatt & McDougall, 1994) were conceived to describe such firms. ...
... In the early 1990s, scholars began to notice that many small-and medium-sized enterprises (SMEs) were becoming international shortly after founding (e.g., Oviatt & McDougall, 1994). The terms "born globals" (BGs; Knight & Cavusgil, 2004) and "international new ventures" (INVs; Oviatt & McDougall, 1994) were conceived to describe such firms. However, given that extant IB theories had been developed in the context of large multinational enterprises (MNEs), some scholars observed that such perspectives were insufficient to explain the distinctive characteristics and experiences of BGs and INVs (e.g., Hashai & Almor, 2004;Knight & Cavusgil, 1996;McCormick & Somaya, 2020). ...
... According to Revindo, Indrawati & Hambali (2019), the discussion of the corporate internationalization has evolved beyond the initial perspective of internalization/transaction cost theory, the eclectic paradigm, and monopolistic advantage theories, which were later deemed insufficient. This discussion continued with several contemporary perspective, such as the stage theory developed by Johanson & Vahlne (1977,1990), the network model proposed by Johanson Oviatt & McDougall (1994), and resource-based view developed by Wernerfelt (1984) and Barney (1991). In addition, Oviatt & McDougall (1994) introduced the concept of International New Ventures (INVs) or the born global firms, which explore how rapidly companies can develop in international markets. ...
... This discussion continued with several contemporary perspective, such as the stage theory developed by Johanson & Vahlne (1977,1990), the network model proposed by Johanson Oviatt & McDougall (1994), and resource-based view developed by Wernerfelt (1984) and Barney (1991). In addition, Oviatt & McDougall (1994) introduced the concept of International New Ventures (INVs) or the born global firms, which explore how rapidly companies can develop in international markets. ...
Article
The primary objectives of this study are threefold: first, to investigate whether the challenges faced by micro and small industries motivate them to enter into partnerships; second, to assess the impact of partnerships on company productivity; and third, to explore the causal relationship between productivity and exports. We aim to determine whether productivity influences exports and vice versa or if a two-way relationship exists. The data used in this study consists of annual survey data from micro and small manufacturing companies, randomly collected by the Central Statistics Agency (BPS) in 2015, with a total sample of 58,290 observations. The methodologies employed include Propensity Score Matching (PSM) to address endogeneity and selection bias issues when measuring the impact of partnerships on productivity. In addition, the Structural Equation Modeling (SEM) framework involves logit regression estimation to assess whether perceived problems influence decisions regarding partnerships and training. The second stage of our analysis employs Two-Stage Least Squares (2SLS) estimation to investigate the simultaneity of productivity and exports. The results indicate that issues related to capital and raw materials significantly motivate companies to engage in partnerships, both in a general context and specific concerning capital and raw materials. Conversely, marketing issues do not significantly influence on marketing partnerships, although they do play a significant role in fostering general partnerships. Meanwhile, issues related to workforce skills do not appear to impact a company’s decision to engage in partnerships or conduct training programs. In terms of production and export estimation, general and specific partnerships demonstrated significantly higher positive impacts on productivity for companies that engage in these collaborative efforts. The 2SLS estimates support the findings from the PSM analysis, confirming that general and specific partnerships improve productivity. Furthermore, the simultaneous relationship estimation reveals a bidirectional relationship between productivity and exports.
... The answer may be found at the very heart of entrepreneurship theory: the pursuit of opportunities to create and deliver value (Kirzner, 1997;Shane & Venkataraman, 2000). In the field of international entrepreneurship, crossterritorial opportunity exploration is seen as driven by local market imperfections, information and knowledge acquired from social networks, and high growth of firms (Jones & Coviello, 2005;Oviatt & McDougall, 2005). Similar discussions can be found in the entrepreneurship literature, where contextual conditions can support (or undermine) on productive entrepreneurial activity (Ardichvili et al., 2003;Wurth et al., 2022). ...
... Research consistently shows that high-growth firms behave differently. Studies on international entrepreneurship highlight that firms with higher growth exhibit a stronger international orientation (Oviatt & McDougall, 2005), which benefits innovation (Kafouros et al., 2008) and growth (Kyläheiko et al., 2011). The international business and entrepreneurship literatures further establish that relationships to foreign partners are a key firm-level internationalization mechanism (Johanson & Vahlne, 2009;Jones & Coviello, 2005;Lindstrand & Melén Hånell, 2017). ...
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We investigate the international network activity of entrepreneurial firms and its implications for the territorial boundaries of entrepreneurial ecosystems. Integrating the idea that territory and networks are distinct structures that can overlap with prior work suggesting that interorganizational networks formed by entrepreneurial firms pursuing opportunities transcend geographic boundaries, we focus on the antecedents to the international network activity of entrepreneurial firms in entrepreneurial ecosystems. We study how entrepreneurial ecosystem conditions, network embeddedness, and speed of firm growth influence the international network activity of 290 dedicated biotech firms located in four regional entrepreneurial ecosystems in Sweden over a period of 10 years. Descriptive data analyses reveal that the interorganizational networks created by the firms in our sample span territorial boundaries with more than half of all network activity involving a partner located in a foreign country. The results of a series of panel regression analyses further indicate that the conditions in the regional entrepreneurial ecosystems and firm characteristics influence the extent of international network activity. Through our work, we add to the scholarly understanding of the complex geography of entrepreneurial ecosystems. Our research highlights that the network activity of entrepreneurial firms oftentimes spans the territorial boundaries of entrepreneurial ecosystems and suggests that thinking outside the box of traditional predetermined administrative or political boundaries may inform more effective policy.
... Internationalization is no longer an individual story of any specific company and country. Earlier accelerated internationalization studies primarily focused on multinational enterprises (MNEs) in developed countries with widespread known theories such as Uppsala frameworks Vahlne 2009, 1977), International New Ventures (INV) or Born Global (Oviatt and McDougall 1994), Casino model (Håkanson and Kappen 2017). The Uppsala theory discussed a step-by-step internationalization process starting from the destination with the closest psychic distance. ...
... Compared to the theory of international new ventures (Oviatt and McDougall 1994), the paper has not distinguished how internationalization decisions are made between high-tech and low-tech SMEs, especially in the current digital transformation trend. In addition, the study still left open the possibility of differences in the decision to internationalize between government-or foreign-controlled companies. ...
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The wave of internationalization has impacted all countries around the world, bringing both new opportunities and challenges not only to multinational companies but also to small- and medium-sized enterprises (SMEs). Choosing a strategic destination for the success of internationalization activities is one of the challenges worth addressing. Based on the springboard perspective, this research aims to provide insights into the criteria that SMEs need to consider to make informed decisions about appropriate internationalization destinations. Accordingly, the compatible range of the springboard perspective is expanded to SMEs in emerging economies. By applying the analytic hierarchy process (AHP) methodology, the study proposes a priority order for criteria that emerging-economy SMEs need to consider in the decision-making process. Accordingly, potential destinations for emerging-economy SMEs’ internationalization journey need to be considered based on three key criteria, namely opportunity identification, incentives in the host country, and cultural distance, in order of decreasing priority. In addition, SMEs from Vietnam, a representative emerging economy, also showed a view that developed economies are identified as the most attractive destinations for them.
... Since those early definitions by Oviatt and McDougall (1994) and Knight (1997), the concept of entrepreneurship internationalization has gained popularity in academia (Fletcher, 2004). However, it is important to differentiate between entrepreneurship internationalization and SME internationalization, which is often treated as a subcategory within broader entrepreneurship internationalization research (Jones et al., 2011;Steinhäuser et al., 2021). ...
... The concept of international entrepreneurship, first introduced by Oviatt and McDougall (1994), brought with it the notion of internationalization speed (Casillas & Acedo, 2013). Oviatt and McDougall initially defined the speed of internationalization as the time from a company's incorporation to its first international sales. ...
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This study examines the internationalization strategies of Galician entrepreneurs and SMEs, focusing on early internationalization trends. The main objective is to develop a regulatory framework that enables entrepreneurs and established SMEs to approach foreign markets effectively. From a qualitative approach, the research analyzed data from Galician firms to construct the Galician Entrepreneurship Internationalization (GEI) matrix. Data were collected through surveys and supplemented from the Vigo Free Trade Zone database, covering exporting companies founded between 1999 and 2021. Qualitative analysis and matrix modeling were applied to categorize firms into distinct internationalization stages, considering factors such as market breadth, export intensity, and speed of entry. Four company profiles emerged from the analysis. The findings reveal that newer companies, influenced by technological advances and favorable public policies, tend to internationalize within a year of inception. The GEI Matrix offers valuable insights for public policymakers and business managers aiming to promote early internationalization.
... By facilitating the identification of opportunities, in fact, wider networks of contacts have been identified as important determinants of exports (Bell 1995), foreign market selection and entry initiatives (Coviello and Munro 1995;Hitt et al. 2002) as well as born-globals' early internationalization (Oviatt and McDougall 1995) because network ties help understand where foreign opportunities emerge and how quickly they can be exploited (Oviatt and McDougall 2005). Consistently, a number of studies underline the importance of networking for both IE (Bell 1995;Coviello and Munro 1997;Oviatt and McDougall 1994) and the speed of IE (Oviatt and McDougall 2005). ...
Article
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Building upon Upper Echelon theory, this paper investigates how work experience diversity in top management teams (TMTs) affects the speed of international entrepreneurship. We hypothesize that TMTs with higher work-experience diversity provide firms with richer human and social capital, which allows them to more quickly identify and take advantage of business opportunities in foreign markets. We also argue that this effect is amplified (weakened) when the CEO shares significant (little) functional experience with the TMT members. The results of fixed effects Poisson regressions on a longitudinal sample of 111 UK-based firms over an 11-year long period support our hypotheses.
... It has been three decades since Oviatt and McDougall (1994) introduced international entrepreneurship (IE) as a multidisciplinary domain incorporating entrepreneurship and international business studies. According to McDougall and Oviatt (2000), IE explores the extent to which small and entrepreneurial firms embrace riskseeking, proactive, and innovative activities to explore and exploit foreign market business opportunities. ...
... At present, there are two principal categories: initial speed and post-entry speed. The former focuses on the period between a firm's foundation and its initial internationalization [21,22], indicating the point at which the firm begins its foreign expansion. It measures 'how early' rather than 'how fast' the internationalization process begins. ...
Article
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On the basis of upper echelons theory, this paper examines the effect of TMT faultlines on internationalization speed and considers the contextual factors that may affect the focal relationship. We focus on A-share listed manufacturing enterprises in the Shanghai and Shenzhen stock markets from 2010 to 2016 to explore the nexuses. The conclusions indicate that TMT faultlines exerts a significant negative influence on the speed of internationalization. However, the presence of executives shareholding and dynamic capabilities serve to mitigate the negative impact to some extent. These findings hold both theoretical and practical significance for Chinese firms’ internationalization in the context of the ‘double-loop strategy’.
... Small businesses play a pivotal role in creating paid employment and making investments, which significantly impacts economic development. SMEs' focus on innovation and growth has led to expected development outcomes, including faster-growing high-tech companies and dynamic initiatives driven by international expansion [51,64]. ...
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Purpose This study examines the impact of manufacturing value-added, retail trade, and value-added agriculture on the Real Gross Domestic Product of small and medium-sized enterprises in the Netherlands from 1970 to 2021. Design/methodology/approach The analysis utilizes stationary variables at level I(0) and applies the least squares method along with the Vector Autoregressive model. These methods focus on key variables critical to the Dutch economy, particularly the manufacturing sector, where many SMEs operate. Findings The study finds that a 1% increase in Manufacturing Value Added and Retail Trade leads to Real Gross Domestic Production growth of 35% and 30%, respectively, with strong correlations (0.80 for Manufacturing Value Added and 0.70 for Retail Trade) between these variables and Real Gross Domestic Production. The model's high R-squared value (87.3%) suggests that Manufacturing Value Added and Retail Trade have long-term effects on Real Gross Domestic Production, while also influencing each other and Value Added Agriculture. Vector Autoregressive analysis further supports these findings, demonstrating Manufacturing Value Added's substantial impact on Retail Trade and Value Added Agriculture. Additionally, the study identifies short-term effects, where Manufacturing Value Added and Retail Trade contribute significantly to Real Gross Domestic Production variations. Originality/value This study highlights the pivotal role of the manufacturing sector in driving economic growth by increasing product diversity and employment. Small and Medium Enterprises demonstrate faster growth and adaptability to new technologies than multinational corporations. Moreover, consumer demand for unique, Small Medium Enterprises-produced goods surpasses demand for mass-produced items from large companies, further emphasizing the value of Small and Medium Enterprises in the Dutch economy.
... In International Entrepreneurship approach, the entrepreneurial orientation is key, which is in turn dependent on the entrepreneurs' knowledge about the industry and the international markets Oviatt and McDougall, 1994). Entrepreneurial orientation enables the firm to internationalise under high committed modes from or near inception without first gaining experiential knowledge in the most accessible domestic market. ...
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Knowledge is paramount to firms’ internationalisation, especially for those firms with lower size. This systematic review looks at them and analyses the intellectual structure of the scientific literature on knowledge required for the internationalisation of small and medium-sized enterprises (SMEs). We analysed the content of 224 articles found on the intersection of knowledge and SMEs’ internationalisation for the period 1984-2017. We classified the content into theoretical approaches, entry modes, target variables, methods, home and host geographical areas and industries analysed. We examined the dynamics of descriptors over time by splitting the period into two non-overlapping sub-periods based on the information technology eras: Digitalization and Age of Acceleration, which have had an impact on possibilities of SMEs’ internationalisation. We mapped the intellectual structure of research in a two-dimensional graph. Four areas of descriptors with singular distributions were found and discussed. Finally, we propose a research agenda in five research avenues.
... Finding suitable mediators or moderators is a little challenging, however, and studies of EO have incorporated both internal factors like resources and competence of entrepreneurs as well as a variety of contextual factors (Tajeddini and Mueller, 2018;Ok et al. 2017;Zhijie et al. 2019a;Petkovic and Sorak, 2019). The contextual variables on international entrepreneurial goals and performance must be systematically analysed for each rising market (Oviatt and McDougall, 2005). There is a great need to better understand how institutions affect entrepreneurship in developing economies (Autio, 2005). ...
... Small businesses play a pivotal role in creating paid employment and making investments, which significantly impacts economic development. SMEs' focus on innovation and growth has led to expected development outcomes, including faster-growing high-tech companies and dynamic initiatives driven by international expansion [51,64]. ...
Article
Full-text available
Purpose This study examines the impact of manufacturing value-added, retail trade, and value-added agriculture on the Real Gross Domestic Product of small and medium-sized enterprises in the Netherlands from 1970 to 2021. Design/methodology/approach The analysis utilizes stationary variables at level I(0) and applies the least squares method along with the Vector Autoregressive model. These methods focus on key variables critical to the Dutch economy, particularly the manufacturing sector, where many SMEs operate. Findings The study finds that a 1% increase in Manufacturing Value Added and Retail Trade leads to Real Gross Domestic Production growth of 35% and 30%, respectively, with strong correlations (0.80 for Manufacturing Value Added and 0.70 for Retail Trade) between these variables and Real Gross Domestic Production. The model's high R-squared value (87.3%) suggests that Manufacturing Value Added and Retail Trade have long-term effects on Real Gross Domestic Production, while also influencing each other and Value Added Agriculture. Vector Autoregressive analysis further supports these findings, demonstrating Manufacturing Value Added's substantial impact on Retail Trade and Value Added Agriculture. Additionally, the study identifies short-term effects, where Manufacturing Value Added and Retail Trade contribute significantly to Real Gross Domestic Production variations. Originality/value This study highlights the pivotal role of the manufacturing sector in driving economic growth by increasing product diversity and employment. Small and Medium Enterprises demonstrate faster growth and adaptability to new technologies than multinational corporations. Moreover, consumer demand for unique, Small Medium Enterprises-produced goods surpasses demand for mass-produced items from large companies, further emphasizing the value of Small and Medium Enterprises in the Dutch economy.
... Finding suitable mediators or moderators is a little challenging, however, and studies of EO have incorporated both internal factors like resources and competence of entrepreneurs as well as a variety of contextual factors (Tajeddini and Mueller, 2018;Ok et al. 2017;Zhijie et al. 2019a;Petkovic and Sorak, 2019). The contextual variables on international entrepreneurial goals and performance must be systematically analysed for each rising market (Oviatt and McDougall, 2005). There is a great need to better understand how institutions affect entrepreneurship in developing economies (Autio, 2005). ...
Article
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This paper explores the relationship between entrepreneurial orientation (EO), entrepreneurial competencies (EC), and international performance of born global firms (BGFs). These firms from their inception, view the world as their marketplace and typically engage in international business activities. Given the increasingly globalized business environment, understanding the factors that contribute to their success is vital. This study investigates whether entrepreneurial orientation enhances the international performance of BGFs and how entrepreneurial competencies mediate this relationship. By reviewing the literature, research gaps in the context of born global firms were identified, a conceptual framework was also proposed. For the assessment of research constructs of the conceptual model, the data was collected from 201 senior managers/CEOs of these born global firms. The scales for the assessment of these measures were developed and refined by utilising robust research methods. Analysis was carried out in three stages, assessment of normality of data, assessment of measurement and structural model. On the basis of the results obtained implications for research and practice were presented along with study limitations. The paper offer insights for both practitioners and academics on how entrepreneurial orientation and competencies can foster global competitiveness of these organisations.
... By 1994, Oviatt and McDougall further developed a conceptualization of international new ventures (INVs) and define them 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" (1994, p. 49). Additionally, they also highlighted four elements of INVs, namely internalization of some transactions, reliance on alternative governance structures, foreign location advantage, and control over unique resources (McDougall & Oviatt 1994). ...
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For over three decades, international entrepreneurship (IE) literature has evolved using a combination of international business and entrepreneurship theories and approaches to analyze international new ventures (INVs) or born global firms (BGs). There are three dimensions commonly attributed to firms that engage in IE: innovation, risk-seeking action, and proactive behavior. This systematic literature review analyzes the role of innovation within the IE literature. To do so, we applied the theory, context, characteristics, and methodology model (TCCM) to a corpus of 190 articles published between 2000 and 2022. Based on this analysis, we present an integrative framework and research opportunities in each of the eight identified streams: innovation ecosystems and networks in IE, knowledge as an innovation driver in IE, organizational culture and innovation in IE, the role of networks on innovation processes in IE, the relationship between innovation and performance in IE, the influence of innovation on internationalization speed of INV or BGs, entrepreneur traits and their influence on innovation in IE, the role of business models on innovation within IE, and the linkages between marketing and innovation on IE.
... Despite these obstacles, the drive toward internationalization is motivated by the need to access broader growth opportunities, enhance competitiveness, and overcome the limitations of the domestic market. Unlike traditional firms that expand internationally only after establishing a robust domestic presence, "born global" firms or international new ventures are those that actively pursue global markets from inception (Escandon- Barbosa et al., 2019;Oviatt & McDougall, 1994). Internationalization offers substantial benefits, including diversified revenue streams (Margolis & Calderon, 2021), access to advanced technologies (Ahi et al., 2022), and enhanced competitiveness (Sun et al., 2019), which in turn can stimulate economic growth through increased employment and foreign exchange flows (Demir et Various factors, both internal and external to entrepreneurial ventures, shape the landscape of internationalization. Digitalization, for instance, has lowered barriers to entry in foreign markets, making it easier for entrepreneurs to reach international customers and suppliers (Brieger et al., 2022). ...
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This study examines the factors influencing the internationalization of early-stage Moroccan entrepreneurs, focusing on human capital, digitalization, and psychological traits. Drawing on Human Capital Theory, Dynamic Capability Theory, and Psychological Theories of Entrepreneurship, the research aims to explore how education, digitalization, fear of failure, self-efficacy, and opportunity perception impact export intensity. Using data from 524 early-stage entrepreneurs surveyed by the Global Entrepreneurship Monitor (GEM), the study employs multiple regression analysis to evaluate the relationships between these factors and export activity. The findings reveal that opportunity perception significantly and positively influences export intensity, highlighting the critical role of entrepreneurial alertness in fostering internationalization. Conversely, education demonstrates a significant negative effect, suggesting that higher education levels may increase risk aversion, potentially deterring engagement in global markets. Surprisingly, digitalization, fear of failure, and self-efficacy do not show significant direct effects on export intensity, with the non-significant effect of digitalization reflecting context-specific challenges, such as limited strategic use, infrastructure gaps, and insufficient digital literacy. The study highlights the need for fostering opportunity recognition and aligning education with practical skills. It calls for investments in digital infrastructure, training, and entrepreneurial ecosystems to empower entrepreneurs in emerging economies.
... Oviatt ve McDougall (1994) ise terimi daha geniş bir perspektifle ele alarak, küresel doğan işletmeler yerine "uluslararası yeni girişim" ifadesini kullanmışlardır. Bu bağlamda, Oviatt ve McDougall, uluslararası yeni girişimleri, "kuruluşlarıyla birlikte kaynaklarını etkili bir şekilde kullanarak ve çıktılarını birçok ülkede pazarlayarak rekabet avantajı elde etmeye çalışan işletmeler" olarak tanımlamışlardır (Oviatt, McDougall, 1994). Knight ve Çavuşgil (1996) tarafından yapılan tanıma göre, küresel doğan işletmeler, "kuruluşlarının erken dönemlerinden itibaren uluslararası pazarlarda faaliyet gösteren küçük ve genellikle teknoloji odaklı şirketler" olarak karakterize edilmektedir. ...
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... They introduced the Uppsala internationalization model (Johanson & Vahlne, 1977;Johanson & Wiedersheim-Paul, 1975), which constitutes a pivotal contribution to shaping the internationalization theory of SMEs within the realm of international entrepreneurship. Oviatt and McDougall (1994) further advanced this theory by defining international new ventures (INV), also known as international start-ups. This emphasis on a distinct type of venture fuelled increased scholarly attention to early internationalization, diverging from traditional sequential models established by Johanson and Wiedersheim-Paul (1975) and Johanson and Vahlne (1977). ...
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... adaption is a vital attribute of entrepreneurial metacognition and a critical resource for entrepreneurs in international settings. Entrepreneurship often involves the movement of goods, services, and capital across international borders, including by "born globals" (Oviatt & McDougall, 1994). Nevertheless, despite the importance of international business for entrepreneurs, we still need to learn more about entrepreneurial metacognition and how it operates in different cultural contexts. ...
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... This assertion is further supported by research conducted by Felício et al. (2016), which consistently demonstrates a positive causal relationship between GM and the internationalization behavior of small firms. Oviatt and McDougall (1994) propose that possessing a global vision is paramount for directors of companies with global aspirations from inception. The notion of GM is crucial for successful internationalization (Torkkeli et al., 2018). ...
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This study explores the dynamic interplay between internationalisation and innovation in SMEs, focusing on how different internationalisation pathways affect innovation. Using a dataset of Canadian SMEs, we employ cluster analysis to categorise firms based on their internationalisation pathways—defined by their scale, scope, timing, and pace—and regression analysis to examine the impact on innovation performance. Our findings show that scale-focused and scope-focused internationalisation significantly enhances innovation compared to domestic-only firms. By identifying five distinct pathways, this study provides a more nuanced understanding of how internationalisation drives SME innovation. It highlights the multifaceted nature of internationalisation’s role in fostering innovation by moving beyond simple measures or types of internationalisation and using multiple measures of innovation. These insights have valuable implications for SME owners, managers, and policymakers aiming to support SME growth through global expansion.
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Internationalization has many different interpretations of what it means and what phenomena it refers from participation to adaption, to expansion and exporting. Nonetheless questions remain on how SMEs particularly from smaller countries which limited resources pursue their internationalization strategies, in comparison to the abundance of resources and advantages of multinational companies.
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Internationalization patterns of SMEs represent a largely debated argument in international business. The discovery of early internationalizing companies whose behavior contrasts with those that gradually internationalize by increasing their scope and commitment has stimulated academic curiosity on the various patterns companies can stick to over time. Although most of the literature on EIFs has focused on their early international development, a stream of research has been devoted to understanding whether all EIFs behave in the same way or if there are different EIFs. Following this purpose, studies have aimed to understand the internationalization path of EIFs and other kinds of internationalizing companies and the entry mode strategies adopted to expand abroad. Discussion and future research avenues are provided in the end.
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Studies have stressed the need to study processes and dynamics that allow ventures to acquire or develop strategic resources and capabilities that support early internationalization, growth, survival, and performance. This chapter explores the processes and dynamics related to core resources, capabilities, decisions, and strategies relevant to understanding the international behavior of early internationalizing firms. The chapter illustrates and summarizes the evidence on the financing sources, organizational culture, knowledge and learning processes, international opportunities, decision-making processes, networks, marketing, innovation, and digitalization among studies on EIFs. Future avenues of research are discussed in the final part.
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Early internationalization represents today a broad and discussed phenomenon. The first chapter of this book illustrates the origins and theoretical background of the literature on early internationalizing firms (EIFs). Specifically, this chapter first illustrates seminal articles published on born globals and international new ventures, entering the details of the initial evidence collected by the most quoted articles published between the late 1980s and the early 2000s. Then, the second section of this chapter explores the link with the Uppsala Stage internationalization models. The third section describes the positioning and boundaries of early internationalization while also considering the overlaps and the boundaries with the broader research field of international entrepreneurship. The last section explains the perspective and the aim of the book.
Chapter
Early internationalizing firms (EIFs) represent a vast and various group of companies that share the main feature of beginning international activities soon after their foundation. The literature on early internationalization has progressed so fast that several theoretical and operational definitions emerged and have spread, leading to a proliferation of labels and categories that are only sometimes adopted coherently. Born globals, international new ventures, and early internationalizing firms are just the most renowned, but this aspect undermines the foundations of this research domain, making comparisons arduous and slowing down the progress of the field. This chapter critically appraises the argument and proposes suggestions for future research.
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This article investigates the influence of networking on innovation and internationalisation within U.K.-based, female-led small and medium-sized tech enterprises. It utilises data from the 2021 Longitudinal Small Business Survey to evaluate a model that incorporates networking, three forms of innovation (product, process, and market), and international performance across 156 technology start-ups founded by women. The study employs orchestration theory to explore how female entrepreneurs strategically manage resources like networking to foster innovation and promote international growth. Findings suggest that while networking significantly boosts product innovation, it does not have a direct effect on process or market innovation. Nonetheless, networking indirectly strengthens the impact of process and market innovations on internationalisation. This highlights that women entrepreneurs initially use networks to enhance product innovation, then leverage them to convert process and organisational innovations into international expansion. The study contributes to the theoretical understanding of the intersection between gender and international entrepreneurship from an orchestration perspective and provides practical insights for female entrepreneurs on optimising networks to drive innovation and facilitate global scaling.
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