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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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... The topic of the speed of internationalisation has emerged as an important issue in the international entrepreneurship (IE) literature due to the recent focus on early internationalisation driven by globalisation [71]. Internationalisation is defined as "the process through which firms increase their exposure and response to international opportunities and threats" [72] (p. ...
... The Uppsala Model considers internationalisation as a gradual commitment to foreign markets [77,78], overlooking competition and strategy dynamics [73]. Conversely, the INV theory focuses on internationalisation as an accelerated process [71], ignoring the time-dependent process of knowledge and competencies [32]. ...
... Through cooperation networks, a company gains access to other firms' knowledge without necessarily going through the same experiences; a typical internationalisation process has changed from incremental development to expansion in leaps [51]. Several scholars [71,73] have highlighted that foreign expansion is better understood by integrating both frameworks because each of them focuses on certain dimensions and ignores others. ...
Article
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This study aims to explore whether the speed of internationalisation—measured by the change in international scale and the change in international scope—can mediate the relationship between network clustering (cooperation networks) and clustered firms’ performance. A quantitative methodology was used to accomplish this purpose, and the research model was tested using the Partial Least Squares Structural Equation Modelling (PLS-SEM). Based on a sample of 1491 Portuguese firms, this paper showed that network clustering directly and positively impacts clustered firms’ performance. When considering the effect of the speed of internationalisation, the study revealed that network clustering also has an indirect, mediated impact on firms’ performance, through the change in international scope (geographical diversification). Conversely, when accounting for the mediation of the change in international scale (degree of internationalisation), the results confirmed that this dimension of speed does not mediate the relationship between network clustering and firms’ performance. This evidence, therefore, stresses the role of geographical diversification in shaping how well the clustered firms perform based on the networks established through industrial clusters.
... Ensemble, ces deux pressions génèrent quatre types de stratégies pour les entreprises opérant au niveau multidomestique, globale, internationale et transnationale (Bartlett & Ghoshal 1989, Bartlett & al. 2004 Aussi, dans le tableau 1.2-1, nous avons réalisé une synthèse des aspects similaires que l'on peut retrouver dans les différentes configurations proposées par Bartlett & Ghoshal (1989, Oviatt & McDougall (1994) (Bartlett & Ghoshal 1986, Paterson & Brock 2002. ...
... La régionalisation peut être placée dans le contexte de l'attention antérieure portée aux distinctions entre le local et le global, qui soulignait la nécessité pour les multinationales de combiner la réactivité locale et l'intégration globale (Bartlett & Ghoshal 1989 ;Prahalad & Doz 1987), ainsi que les preuves de l'existence d'une intégration transfrontalière incomplète, qualifiée de « semi-globalisation », nécessitant ainsi des stratégies régionales (Ghemawat 2003(Ghemawat , 2005 Bartlett & Ghoshal (1989, Oviatt & McDougall (1994), et Verbeke (2013) Ce chapitre a traité la formalisation du processus de régionalisation dans la stratégie des EMN et de son impact concret dans la construction structurelle de l'organisation non seulement au sein de la tête pensante, la maison-mère, mais également de la filiale. L'internationalisation prend une tourne dans son évolution alors que l'économie mondiale fait l'expérimentation 47 Ceci n'est qu'une copie de la première adaptation des typologies que vous avons observées au travers des configurations qui répondaient aux enjeux d'internationalisation à la fois séquentielle et des EIRP. ...
... Nous avons étudié les spécificités que pouvaient contenir les EHQ japonais, pour illustrer notre interrogation. (Oviatt & McDougall 1994) -n'affecte pas la configuration organisationnelle de l'entreprise multinationale. La démarche n'affecte, en effet, ni la configuration que la maison-mère aurait pour son réseau (présentée dans les travaux de travaux Bartlett & Ghoshal (1989, Oviatt & McDougall (1994), Rugman (2004 et Verbeke (2013) ; encore moins celle que la maison-mère imaginerait pour ses filiales (Birkinshaw & Morisson 1995). ...
Thesis
Cette thèse s'intéresse aux relations organisationnelles des entreprises multinationales (EMN), dans leur processus de régionalisation. Si la majorité des travaux en Stratégie Internationale mettent en lumière, la relation partant de la maison-mère vers la fille, ce travail veut démontrer qu'il existerait une relation inverse dont l'impact tend à influencer la stratégie globale de l'organisation multinationale.Contrairement à ce qui existe dans la littérature en Management International et en Management Stratégique, le projet se préoccupe des dynamiques comportementales ; entre autres, comment le comportement entrepreneurial des filiales modifie les modalités de coordination initiales des sièges internationaux.En se référant à une logique institutionnelle, encastrée par un ensemble d'acteurs et de facteurs propres à l'environnement d'accueil, la démarche empirique se focalise sur le cas de sièges régionaux (RHQ) japonais opérant dans les secteurs automobile et électronique du marché économique européen.L'ambition de cette démarche, soutenu par un raisonnement qualitatif devrait, nous aider à mettre en lumière les conditions favorables pour des initiatives prises par ces RHQ et comment elles amélioreraient la coordination existante entre la maison-mère et la filiale.
... This year marks the 30th anniversary of Oviatt and McDougall's (1994) now seminal article "Toward a Theory of International New Ventures," winning the 1993 NYU Center for Entrepreneurship Studies award for best paper on entrepreneurship and innovation. This was not the first international entrepreneurship (IE) paper 1 but it is generally accepted as the landmark work that shaped IE as a distinct and promising subfield bridging burgeoning conversations in international business with those in entrepreneurship. ...
... This conflation resulted in debate, confusion, and rebuke in the following years. Specifically, Oviatt and McDougall's (1994) had defined the domain of early internationalization as being INVs in general, consisting of four subtypes wherein global start-ups were only one type of INV, the most prolific internationalizers, a critical distinction obfuscated in Knight and Cavusgil (2004). Further, even global start-ups share only some conceptual overlap with born globals-meaning we had one very broad unilateral conceptualization (born global, Knight & Cavusgil, 1996, 2004 and one more regimented segmented conceptualization of internationalizing firms (international new ventures, Oviatt & McDougall, 1994) being used interchangeably and/or in conjunction. ...
... Specifically, Oviatt and McDougall's (1994) had defined the domain of early internationalization as being INVs in general, consisting of four subtypes wherein global start-ups were only one type of INV, the most prolific internationalizers, a critical distinction obfuscated in Knight and Cavusgil (2004). Further, even global start-ups share only some conceptual overlap with born globals-meaning we had one very broad unilateral conceptualization (born global, Knight & Cavusgil, 1996, 2004 and one more regimented segmented conceptualization of internationalizing firms (international new ventures, Oviatt & McDougall, 1994) being used interchangeably and/or in conjunction. ...
Article
International entrepreneurship—the field dedicated to the discovery, enactment, evaluation, and exploitation of opportunities across national borders to create future goods and services—is as inextricably linked to firm activity as entrepreneurship, strategy, or international business. However, for much of the past 30 years the field has been hampered by confusion and inconsistency over definitions and existential questions such as, “What is a born global?”; “what is an international new venture?”; and “how does one distinguish emerging firm types?” While many of these questions have been previously answered in isolation, confusion remains, as the field lacks a coherent unified perspective of firm activity. In this introduction to our thematic issue on international entrepreneurship, we address this need, present a unified model of international new ventures drawn from the latest definitions and distinctions, and call for future research that fully integrates form into the conversations of opportunity, technology, liability, and the unique network and value-chain alignments that exist across borders. We also discuss how we can better integrate and add value to nascent trends more broadly from neuroscience, deglobalization, intercultural arbitrage, and other areas.
... Early internationalization refers to the early leap of firms into foreign markets after their foundation (Knight & Cavusgil, 2004). Such firms have been assigned various names but the most commonly used are international new ventures (INVs) (Oviatt et al., 1994) and born globals (BGs) (Rennie, 1993;Chetty & Campbell-Hunt, 2004). ...
... The current review spans from 1994-2021. In 1994, Oviatt and McDougall's highly influential paper on INVs appeared (Oviatt & McDougall 1994) just as digital technologies had started to become more common in the form of personal computer and internet use, and importantly Netscape had introduced graphical web browsers at the 1990s. Therefore, it could be expected that firms began using such digital technologies when internationalizing from 1994 onwards. ...
... Secondly, social networking is a significant channel known in the IE to influence early internationalization (Oviatt et al., 1994;Fuerst & Zettinig, 2015;Williams, Du & Zhang, 2020) and by engaging in social networking, new ventures have the opportunity to acquire knowledge by imitating others (Zou & Ghauri, 2010). However, in the reviewed articles, we did not find any article on social networking and how it translates to opportunity recognition in a digital context (i.e., social media). ...
Conference Paper
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Substantial anecdotal evidence has been garnered to make it uncontentious to concede to studies that stress on the influence of digital technology on early internationalization of firms. Having an interest to study how studies on this phenomenon has progressed overtime. The present paper systematically evaluates internationalization literature in which issues of digitalization feature as a component underlying the causes, processes, and outcomes of early internationalization. We contribute by proposing several future research directions.
... This provides new opportunities for small and medium-sized enterprises (hereafter, SMEs) to expand to global markets. In particular, for international new ventures (hereafter, INVs) that are established and begin the internationalization process under consideration of the global market (Oviatt & McDougall, 1994), digital platforms have become a channel for easy international entry (Jin & Hurd, 2018;Jean et al., 2020). In this study, INVs refer to early-stage exporters who start exporting within three years since their foundation and earn at least a quarter of their total income from export (Cavusgil & Knight, 2015;McDougall & Oviatt, 2000;Oviatt & McDougall, 1994). ...
... In particular, for international new ventures (hereafter, INVs) that are established and begin the internationalization process under consideration of the global market (Oviatt & McDougall, 1994), digital platforms have become a channel for easy international entry (Jin & Hurd, 2018;Jean et al., 2020). In this study, INVs refer to early-stage exporters who start exporting within three years since their foundation and earn at least a quarter of their total income from export (Cavusgil & Knight, 2015;McDougall & Oviatt, 2000;Oviatt & McDougall, 1994). ...
... We draw on prior studies (Cavusgil & Knight, 2015;McDougall & Oviatt, 2000;Oviatt & McDougall, 1994) in defining INVs as early-stage exporters that have started exporting within three years of their founding and that earn at least a quarter of their total revenues from export customers. This is also in line with previous international entrepreneurship (IE) studies (e.g. ...
Article
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Drawing on institutional theory, this study investigates how institutional pressure can affect digital platform risk. Specifically, it examines whether two types of institutional pressure – domestic market e-commerce policy uncertainty and foreign market e-commerce policy uncertainty – affect the perceived digital platform risk for international new ventures (INVs) and its relationship with their scope of internationalization. The recent crisis caused by the Covid-19 pandemic has further impacted this new phenomenon, thus we examine its effects on the relationships between/among domestic and foreign market e-commerce policy uncertainties, digital platform risk, and the internationalization scope of INVs. We conduct four waves of a survey to test the Covid-19 effects as well as to minimize common method bias, analyzing the final sample of 394 responses from 260 Chinese INVs using structural equation modeling. The results show that domestic and foreign market e-commerce policy uncertainties positively affect the digital platform risk for INVs, with foreign market e-commerce policy uncertainty having a stronger positive impact. Moreover, we find that the Covid-19 pandemic interacts asymmetrically with the relationship between domestic vs. foreign market e-commerce policy uncertainty and the digital platform risk for INVs. In addition, the pandemic strengthens the negative relationship between digital platform risk and the internationalization scope of INVs. This research broadens and strengthens our understanding of e-commerce policy and international business in the context of INVs’ internationalization.
... Countries with a close "psychological distance" (such as geographically adjacent and culturally similar countries) are typically selected first for export, and more distant countries are incorporated later (Johanson & Wiedersheim-Paul, 1975). Many of the enterprises that adopt this mode of internationalization develop from large and mature domestic enterprises (Oviatt, 1994). ...
... In an important finding about BGs, research has revealed Ethat these rapidly internationalized start-ups achieve their international market goals by controlling intangible knowledge capabilities (Knight & Cavusgil, 2004). Oviatt and McDougall (1994) argue that the valuable, rare, and irreplaceable intangible knowledge resources owned by BGs are difficult for competitors to copy, which is an important factor in achieving sustainable competitive advantage and excellent performance. Born global firms are knowledge-intensive organizations, typically selling innovative and technology-based products to global markets from or near their inception Knight & Cavusgil, 2005). ...
... Traditional MNEs ofocus on the rational allocation and utilization of existing resources, while BGs with entrepreneurial founders overcome resource shortages by developing new knowledge resources and innovating new resource utilization methods. They supplement their resources by cultivating new networks and building partnerships in leading markets, and proactively seek opportunities to enter new markets (Oviatt & McDougall, 1994;Weerawardenaa, Kirpalani, Dimitratos, Solberg, & Zucchella, 2020). Madsen and Servais (1997) revealed that the innovativeness of entrepreneurs gave birth to BGs with a stronger transnational entrepreneurial orientation. ...
Article
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This study examines the financial performance and characteristics of born global firms (BGs) in China. While the literature on BGs is growing, few systematic studies have investigated their financial performance, especially for BGs from developing economies like China. This study compares the financial ratios and rates of BGs with those of gradual internationalization firms (GIs) using analysis of variance and data on 1,069 listed companies in China’s manufacturing industry. The results show that BGs are inferior to GIs in profitability, debt paying ability, growth potential, and asset quality but are similar to GIs in terms of asset management capabilities. Born global firms’ ROA, operating profit margin ratio, gross profit margin ratio, current ratio, quick ratio, P/BV, Tobin’s q, and growth ratios are lower than those of GIs; their debt ratio is higher than that of GIs, but their operating activity ratios are not statistically significantly different. The study also finds that ownership and size differences exert significantly impacts on the financial performance of BGs.
... investigated Open Strategy focused on external transparency during Mergers and Acquisitions (M&A) but there is much to be understood about how Open Strategy develops in other internationalization strategies and processes , for example, in the accelerated process of internationalization. The IE literature elicits that the accelerated process of new ventures internalization is benefited by the characteristics and strategic orientations of the entrepreneur, who is the founder and key decision-maker (Chetty and Campbell-Hunt, 2004;Oviatt and McDougall, 1994;Hsieh et al., 2019;Child et al., 2022), and the small groups in which he is involved, such as social networks and strategic alliances (Coviello and Munro, 1997;Hagen and Zuchella, 2014;Zuchella et al., 2007). We recognize these social networks and relationships as forms of openness because entrepreneurs include external actors in their international strategic conversations and share strategic information with them (Adobor, 2020;Hautz, 2017). ...
... Companies that internationalize in an accelerated way have been referred to mainly as international new ventures (Oviatt and McDougall, 1994) or born globals (Knight and Cavusgil, 1996). In short, they are "organizations that are international from inception" (Oviatt and McDougall, 1994, p. 46) or, technology-oriented SMEs that have operated in international markets from the "earliest days of their establishment" (Knight and Cavusgil, 1996, p. 11;Jain et al., 2019) either through physical product exports (Knight and Cavusgil, 1996), or by digital internationalization (Cahen and Borini, 2020). ...
... Additionally, the IE literature points out the entrepreneur as one of the main drivers of the accelerated process of internationalization (Oviatt and McDougall, 1994). Despite the significance of the entrepreneur in such a process (Chetty and Campbell-Hunt, 2004;Oviatt and McDougall, 1994;Zuchella et al., 2007), we stated that he is not the only practitioner who plays a major role in the early internationalization of firms (Whittington, 2019). ...
Article
Purpose Due to the changes in organizational, social, cultural and technological factors, companies from different contexts are shifting towards open forms of strategy-making with more widened inclusion of internal and external actors and greater transparency regarding their strategic issues, including their internationalization processes. The purpose of this paper is to understand how Open Strategizing occurs in the accelerated process of internationalization considering different contexts. Design/methodology/approach The authors conducted a qualitative comparative case study in Brazilian and English technology-based small and medium-sized enterprises (SMEs) which rapidly internationalized. Furthermore, data was collected through semi-structured interviews, observations and documental analysis. Findings The authors suggest that openness contributes to the accelerated process of internationalization. Additionally, the authors show that the home-country and the national cultural contexts affect openness. The authors also disclose openness as crucial and inherent to the accelerated process of internationalization, while context is relevant but not determinant in the Open Strategizing. Originality/value The authors contribute to Open Strategy (OS) literature by presenting how Open Strategizing unfolds daily during the internationalization process and by evidencing the role of home-country and national cultural contexts in the configuration and dynamics of Open Strategizing. The authors also contribute to the international entrepreneurship (IE) literature by advancing the understanding of the strategies and drivers adopted by technology-based SMEs internationalizing in an accelerated way.
... As the contribution of CI in businesses can be too broad according to the existing literature, for example, ranging from supporting the decision making, contributing to the strategic management process (Bernhardt 1993 cited by Priporas et al. 2005), to the formation of competitive advantage (Tarek et al. 2017 ) and to help businesses in the internationalization process (Tarek et al. 2017, Tuan 2015 we want to focus on aspects that have not drawn a lot of attention in the literature. In this work, we are building upon the Uppsala internationalization model (Johanson & Vahlne, 1977) and the born global theory (Oviatt & MCDougall 2005) but from a reverse perspective, the one of the domestic company that deals with international competition in the domestic market. Our contribution thus is twofold. ...
... According to Oviatt & McDougall (2005) one of the elements that make internationalization plausible for companies is that they find advantages from establishing in new markets. To achieve this level and to be able to internationalize is required to have a valuable unique asset, which will fill a need into the new market since the local companies have advantages in knowing the culture, language, regulations and network, is the barrier to succeed higher than compared for the native companies (ibid). ...
... This article explores in-depth how SMEs are internationalizing. In comparison to the Uppsala Model, this article rejects the chronological steps of internationalization that previously been recognized,Oviatt & McDougall (2005). ...
Thesis
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This thesis is within the field of Competitive Intelligence. The thesis's main purpose is to investigate how Swedish startups perceive Competitive Intelligence and how their perception influences how they are dealing with international competition in the domestic market. Even though Competitive Intelligence is not a new field, the existing literature over this topic is not very rich, especially regarding startups. In our work, through qualitative research based on eleven semi-structured interviews, with CEOs and founders of startups in Sweden, and a CEO of an Intelligence firm in Sweden, we argue that there are three approaches to Competitive Intelligence from Swedish startups. The competition-centric, the customer-centric and the market-centric approach. Furthermore, we propose that dealing with competition requires startups to establish an intelligence culture that involves everyone, as it enhances their alertness, contributes to the building of a competitive advantage, increases their sales efficiency and lastly using their "insidership" as it is proposed in the revised Uppsala Model, to gather information and deal with the competitors. Finally, from our findings we propose two new classifications in addition to Murphy's five classifications of firms based on their engagement in Competitive Intelligence activities, "the Hesitant" and "The Arrogant".
... The first attempt to explain the internationalization of these entities took place in the mid-1970s thanks to Swedish researchers Johanson and Vahlne (1974), who presented the Uppsala model of internationalization (Johanson & Vahlne, 1977;Johanson & Wiedersheim-Paul, 1975). That caused an intensification of research on SME internationalization. Two decards later, Oviatt and McDougall (1994) observed that the internationalization of some SMEs does not occur sequentially. Some entities internationalize shortly after their inception, and the researchers called them international new ventures (INVs), also known as international start-ups. ...
... the literature, such entities are called international new ventures or international start-ups(Knight, Madsen, & Servais, 2004;Oviatt & McDougall, 1994). This phenomenon was described around the mid-1990s byOviatt and McDougall (1994), who observed that the internationalization of specific entities does not always occur sequentially(Johanson & Vahlne, 1977; Johanson & Wiedersheim-Paul, 1975) but can occur in leaps and bounds (Oviatt & McDougall, 1994), which initiated a new era of research on the internationalization of new ventures conducted within the framework of the international entrepreneurship school. ...
... the literature, such entities are called international new ventures or international start-ups(Knight, Madsen, & Servais, 2004;Oviatt & McDougall, 1994). This phenomenon was described around the mid-1990s byOviatt and McDougall (1994), who observed that the internationalization of specific entities does not always occur sequentially(Johanson & Vahlne, 1977; Johanson & Wiedersheim-Paul, 1975) but can occur in leaps and bounds (Oviatt & McDougall, 1994), which initiated a new era of research on the internationalization of new ventures conducted within the framework of the international entrepreneurship school. Generally, early internationalization processes result from complex interactions between changes in the environment of international markets and the diffusion of a class of managers and entrepreneurs characterized by a more international solid vision (Zucchella, Palamara, & Denicolai, 2007). ...
Conference Paper
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Smartness of the cities we are living in is ultimately more or less about the same as sustainability – our wellbeing, quality of everyday existence which always means living in concordance with nature, respecting others’ rights and protecting our mental and physical health. However, getting into the details of approaching, measuring and reporting progress in the practical implementation of both concepts is indispensable for understanding how "sustainability" and "smart-cities" - as to the rule socioeconomical categories - are intertwined. Both title concepts are defined quantitatively and qualitatively, and presented in various sources. Thus, the aim of the paper is to investigate their relationship in the conceptual sense and from practical point of view, i.e., how they are denoted and reflected by indicators and data. Then the title issue is presented via case research on Polish cities focusing on progress in implementing the smart city concept in this country. Research in Polish cities which is based on the literature and other available resources will elucidate various projects financed from EU funds and focus on projects linking sustainability and city smartness to show how they can be commonly and concurrently realized in practice.
... To better analyze the rapidly spreading born-global phenomenon, researchers are re-examining the premises on which IPT stands and are proposing new frameworks to better explain the born-global features of firms ( (Reid 1983), (Andersen 1993), (Oviatt and McDougall 1997), (Knight and Cavusgil 1996) and (Fillis 2001)). These firms have been given various other names apart from Rennie's (1993) and Knight's (1996) 'Born Globals', with Oviatt and McDougall (1994) referring to these companies as 'International New Ventures', or as 'Global Start-ups', and Jolly at al.( 1992) as "High Technology Start-ups.' The term 'Born Globals' seem to have finally prevailed in terms of popularity amongst researchers, and is also the label preferred in this paper, because the term "born-global" clearly differentiates these companies from the conventional international firms that gradually evolve through many stages. ...
... Clusters of BGPP's in different industry sectors were rapidly established in the PRD within twenty years, a phenomenon without precedence in economic history. This phenomenon cannot be explained satisfactorily using both traditional MNE expansion theory (Chandler 1986, Cyert 1963, and Johanson 1977 and the recently developed New Venture Internationalization Theory (NVI) (Oviatt and McDougall 1994). The long established Process Theory of Internationalization (PTI) of MNE's is mainly focused on enterprises that gradually expanded from powerful domestic enterprises to large and well-known multinational corporations. ...
... Research suggests that IMK positively influences the internationalization of SMEs (Musteen et al., 2014;Oviatt and McDougall, 1994). Similarly, Liesch and Knight (1999) noted that "a SME's readiness for involvement in international markets can be interpreted as being a function of its state of informedness on targeted foreign market(s)" (p. ...
... Supportive policies in an emerging economy can lead EESMEs to be more internationalized; however, not all EESMEs are able to do so. Even if owners of new ventures wish to enter the international arena from inception (Oviatt and McDougall, 1994), it's only those that can manage risks associated with internationalization that are able. Particularly, those that can manage risks of liabilities of foreignness and outsidership (Aluko et al., 2020). ...
Article
Research suggests that internationalizing SMEs in the West enjoy far greater institutional support. There is, however, little understanding of the internationalization processes of emerging economies' SMEs (EESMEs) and yet they are notable contenders in international trade. Accordingly, this research draws from an integrated strategy tripod framework to develop new perspectives accounting for how Iranian-based EESMEs internationalize and compete in international markets. A comprehensive analysis of Iranian EESMEs' survey data revealed that, other than their owner's managerial perceptions of their industry, firm, and institutional constraints, international market knowledge (IMK) significantly moderated their internationalization strategies. Such understanding advances research on firm internationalization by pinpointing the central role of IMK in forming internationalization strategies by EESMEs in hard-to-reach contexts, which has implications for academic research and policy-making, leading to needed reform based on theory and practice.
... With internationalization, the firms can expand their business activities to foreign markets and access lowcost resources. International firms are able to learn about markets, competition through international trade (Oviatt & McDougall, 1994), and diversification by trading internationally to increase firm value. ...
... In this study, it is recommended that the internationalization of issuing firms can serve as a quality signal at an IPO process to reduce IPO underpricing (Kongkaew, Tongkong & Ngudgratoke, 2021;Ozdemir & Upneja, 2016). In other words, internationalization benefits firm activities in terms of foreign markets, low-cost resources, knowledge about market and competition (Oviatt & McDougall, 1994) and diversification from trading internationally. In contrast, a higher degree of internationalization is positively related to underpricing (LiPuma, 2012) since underpricing is valued by investors who expect initial returns from international strategy due to agency problem. ...
Article
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Previous research has indicated that internationalization can reduce underpricing. To enrich its effect, this study extended the examination to the three-way interaction effects of internationalization, founder status, and institutional investors on IPO underpricing. The data from 92 Thai IPOs from 2013 to 2021 were collected and Hayes's regression-based analysis was used to analyze moderated moderation. Founder status and the proportion of institutional investors were taken as the moderators to explain the mechanism of the effect of internationalization on underpricing. The key findings show that internationalization decreased underpricing, and became stronger in non-founder CEO firms. However, internationalization increased underpricing and became stronger in founder-CEO firms. Moreover, this two-way interaction was stronger when it was moderated by institutional investors. In the cases of the low and moderate levels of institutional investors, the effects of internationalization on underpricing became more negative in firms with a non-founder CEO, but more positive in firms with a founder CEO. The effects of internationalization on underpricing depended upon the founder's status and the level of institutional investors. Thus, internationalization, a non-founder CEO, and the low and moderate levels of institutional investors can increase IPO wealth by lowering the IPO underpricing.
... Com a evolução do conceito de EI, pesquisas revelaram que o processo de internacionalização pode ser rápido e que o tamanho e a idade das organizações não são fatores relevantes para um resultado favorável (OVIATT; MCDOUGALL, 1994;LIESCH, 2016). O desempenho acima da média das empresas está relacionado à inovação como diferencial nos produtos ou serviços ofertados e de gestores centrados (NURJAMAN et al., 2019;SEMUEL;SIAGIAN;OCTAVIA, 2017 MCDOUGALL;2000). ...
... Vários esforços de pesquisas foram envidados no desenvolvimento dessa área do conhecimento, dentre os quais, destacam-se: criação de framework de novos empreendimentos internacionais (OVIATT; MCDOUGALL, 1994), as motivações que interferem na cultura empreendedora e nas atividades do EI (DIMITRATOS; PLAKOYIANNAKI, 2003), compreensão das empresas nascidas globais (KNIGHT; CAVUSGIL, 2004;RENNIE, 1993), a aplicação do EI numa perspectiva cognitiva e a atuação dos empreendedores explorando oportunidades em ambientes internacionais (ZAHRA; KORRI; YU, 2005) e a relação do EI na obtenção de vantagem competitiva no processo de internacionalização (ZAHRA; GEORGE, 2002), dentre outras discussões que vêm fundamentando a composição do corpo teórico de empreendedorismo internacional. ...
... The Uppsala Model has some critiques from some authors. Oviatt & McDougall (1994) argue that the gradual concept is not always appropriate for SMEs because some SMEs do not go through this phase; they are active in the international market since they start their business. Forsgren (2002) provides criticism concerning market knowledge aspects. ...
... Along with the statements of Axinn & Matthyssens (2002) and McDougall and Oviatt (1994), we agree that environmental change opens up the possibility of theories that have been developed and so far believed to be able to explain the behaviour of SMEs in the internationalization process need to be reviewed to see the extent 208 of their relevance with the current environment. The dimensions of environmental change that are highlighted by Axinn and Matthyssens (2002) are: economic globalization (Bartlett et al., 2000), development of service economy (Hamill, 1997) technological sophistication (Coviello et al., 2017), and the development of the valuebased economy. ...
Article
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Studies on the internationalization process of SMEs have fascinated the attention of researchers around the world. The dynamics in the internationalization process of SMEs have attracted researchers' interest in analyzing the behavior and the factors that influence it with various theoretical approaches to contribute to the development of international business studies. This paper intended to provide an overview of the various theories applied in investigating SMEs' internationalization process. The review was conducted on 100 journal articles between 2013 and 2020. The investigation results show that 17 different theories have been identified in the internationalization process of SMEs and we classified them into five streams. Based on our findings, from those 17 theories, the five primary published theories in order are (1) Uppsala theory, (2) Network theory, (3) Resource-based theory, (4) international entrepreneurship theory, and (5) institutional theory. This study also provides suggestions and implications for future research. Keywords— Internationalization process; Internationalization SME theory; Small and Medium Enterprises (SMEs)
... More importantly, the intersection of the research themes has also generated scholarly interest, with 130 articles (see Fig. 2 for an Edwards-Venn diagram of the reviewed articles' research themes 1 ). Moreover, although many of the extant studies (54), continue to rely on contrasting internationalization process theory (Johanson & Vahlne, 1977) and the born-global approach (Cavusgil & Knight, 2015;Oviatt & McDougall, 1994), more than 100 articles draw on capability-based theories (e.g., the resource-based view, dynamic capabilities perspective, network theory, organizational learning theory, the knowledge-based view, and social capital theory). ...
... BGs are usually resource-scarce organizations that tend to grow through little internalization and a larger use of alternative governance structures and alliances (Oviatt & McDougall, 1994). BGs' resource scarcity is likely to render them highly dependent for their expansion on the possession of fungible resources (i.e., those that may be deployed for alternative uses, or combined with other resources, at a low cost). ...
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Born globals (BG)’ post-entry evolution is a process characterized by superior growth opportunities, but also higher risks of failure. These concerns lead to the fundamental question regarding the factors that may play a role in BGs’ post-entry performance and survival. To provide a comprehensive picture on this issue, this paper critically examines 185 articles that have appeared in 39 academic journals over the past three decades. Drawing on complexity theory, we map a dynamic complex system comprising the interplay of six components relating to system inputs, managerial and firm-level capabilities – e.g., innovativeness, learning, and experience – , networks and system outputs – e.g., international growth and survival. Our review also suggests that strategic choices and orientations may act as change catalysts that bring BGs’ complex systems to the next stages of evolution, with further consequences on firm expansion. Our review contributes to the extant literature by taking stock of the present state of knowledge, and providing a taxonomy on the components of the dynamic system that influences the post-entry performance and survival of BGs. Furthermore, this paper and the resulting taxonomy unpacks the various sources of BGs’ heterogeneity, based on factors such as their different resources, capabilities, and strategies. In doing so, the paper uncovers significant gaps and contradictions in the literature, which opens important opportunities for future research. The paper concludes with a discussion of managerial and public policy implications.
... Generally, firms in this stream have capitalized on some effective and potent strategies (e.g., networks) to take advantage of international opportunities, save time, while mitigating, if not avoiding, forces impeding smaller, and younger entrepreneurial enterprises' relatively faster and efficient internationalization (Kuivalainen et al. 2012a andKuivalainen et al. 2012b), Bell et al. (2003) (e.g., Avoiding the slow process of gaining experiential knowledge in the U-Models through networking with local suppliers and service-provider). As the primary agents of this stream, for example, the Born Globals (McKinsey and Company 1993, Rennie 1993, Knight and Cavusgil 1996and Cavusgil and Knight 2015, and the New International Ventures McDougall 1994, McDougall andOviatt 2000) have used their own limited objective knowledge and resources (Penrose 1959, Barney 1991, amongst others) (e.g., technology or intellectual property) and have complemented them by leveraging their network partners' capabilities, tacit knowledge (e.g., the local experiential knowledge of partners) and their resource to enter international markets at a faster pace. Similarly, Born Regionals (Sui et al. 2012) and rapidly internationalizing enterprises (RIEs) (Etemad 2011, Etemad and Wu 2013, Keen and Etemad 2012 have also capitalized on their international collaborators and network members to internationalize before the market value or the utility of their FSAs (e.g., intellectual properties and knowledge) would begin to decay rapidly overtime, as intellectual properties usually do. ...
Article
This article consists of five complementary parts. The Introduction portrays the increasing challenges of entrepreneurial internationalization encountered by smaller and younger firms facing highly competitive, difficult, and near-crisis environments. The literature review of the extant internationalization theories, in five related streams, will examine each stream’s benefits, contribution, and difficulties from the evolving perspective of an internationalizing enterprise over the span of its life-cycle, ranging from embryonic to growth and maturing stages. Based on the current and prevailing experience, a longitudinally integrated internationalization framework addressing different aspects evolving over the firm’s life-cycle stages is proposed and its necessary building blocks are discussed. A critical examination of the framework from the perspectives of both the received theory and ongoing practice points to its advantages and opportunity for further complementary scholarly developments beyond this article.
... (Wach, 2012). International entrepreneurship grew up in the literature through the research of Oviatt and McDougall (1994), who were the first to define the so -called international new ventures, also known as international start -ups, i.e., business entities that internationalise shortly after their inception. Unlike traditional enterprises, whose development is based on slow and organic growth (Johanson, Vahlne, 1974;Johanson, Wiedersheim -Paul, 1975), international new ventures characterise proactivity while they operate. ...
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The article considers the relations of education and prior international experience as elements of human capital with new ventures’ early internationalisation. The aim of the study is to investigate the role of human capital as a factor that can influence early internationalisation. The paper presents partial results based on a sample of 220 Polish start-ups operating in the information and communications technology sector, founded between 2017 and 2021. Quantitative methods were used to analyse the data collected in March and April 2022 by applying the CATI method. In addition, binomial logistic regression, assuming a dichotomous dependent variable, was used to verify the formulated research hypotheses. The study finds that prior international experience and education could significantly determine the likelihood of early internationalisation. The research also showed that human capital is positively related to start-up internationalisation. The results presented in the article have practical implications. They are just a starting point for further analysis regarding focusing not only on human capital but also on considerations on intellectual capital and identifying the other factors influencing the start-ups’ early internationalisation in the information and communications technology sector, recognised as one of the most innovative industries in the Polish economy.
... Of interest is the role of new ventures, many of which generate 25% or more revenues from international markets, play in the creation of high-income opportunities that spur economic growth (Bosma & Kelley, 2019;Estrin, Mickiewicz, Stephan, & Wright, 2019). International new ventures (INVs) are entrepreneurial firms that leverage innovation to generate a competitive advantage in international markets at or near inception (Knight & Cavusgil, 2004;Oviatt & McDougall, 1994). Accordingly, innovation increasingly features in the ability of emerging market ventures to achieve performance targets in international markets (Hughes, Martin, Morgan, & Robson, 2010). ...
... Firms need to become more conscious of their potential to tap the changing scenarios that can generate new opportunities. Market dynamism brings in new knowledge that increases the inner sources of competitive advantage (Oviatt & McDougall, 2005). Managers must create an opportunistic approach by sensing, seizing, and reconfiguring changes as per the evolving markets, thereby developing an opportunistic strategy and enhancing the responsiveness of the firms (Jackson et al., 2020). ...
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Knowledge‐based dynamic capability (KBDC) is a firm's ability to acquire, create, and combine knowledge to identify and exploit opportunities while addressing the dynamics of environmental changes. Based on a systematic review and analysis of the extant literature related to KBDC from 1959–2020, we aim to trace significant theories, contexts, characteristics, and methodologies (TCCM) and their inter‐relationships to present a holistic view of the KBDCs research. In particular, the study attempts to address the issues inherent in organizing, designing, and executing KBDCs towards the attainment of the firm's strategic and organizational objectives. The study uses a structured methodological approach for conducting a systematic literature review to determine the existing contributions and by proposing the frameworks for future research. By conducting TCCM and bibliometric analysis of the existing KBDCs literature, the study provides comprehensive networks, significant countries, eminent authors, prominent theories, context, characteristics, and methodologies in this field. The analysis, therefore, addresses the managerial concerns over the entire spectrum of knowledge‐based entities and bridges the gaps, such as application bias in large organizations, developed nations, and single‐level analysis by exploring potential relationships regarding KBDC. Overall, the study provides the logical concept mapping, usage, and taxonomy contributing towards the strengthening of KBDC. In addition, the study also presents areas in which research has made the most progress as well as those in which gaps and unsolved tensions persist. The epistemological exploration traces the significant contributions for determining the future research scope.
... Firms may still face traditional international adoption barriers, like cultural and economic differences, but the more digital their product or service, the more firms can surmount these barriers through methods like engaging potential customers in the product co-creation process (Shaheer & Li, 2020). Thus, these technologies can accelerate the propensity for firms to be "born global" (Oviatt & McDougall, 1994), rather than progressing through the traditional (e.g., Uppsala) internationalization model whereby they grow within their home market for years before offering their products to overseas customers (Coviello et al., 2017). ...
Chapter
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We posit that the rise of digital technologies (DTs) may affect liabilities of newness (LoN), liabilities of smallness (LoS), and assets of newness (AoN) by enhancing some new venture and small business advantages and at least partially mitigating various disadvantages. For example, compared to the formidable competitive and resource acquisition barriers they have historically faced, these firms can now raise capital via crowdfunding, competitively differentiate themselves on social media sites, rapidly prototype products with 3D printing, reduce computer software costs through cloud computing, and access human resources worldwide on digital labor platforms. In effect, DTs may allow new ventures and small businesses to “punch above their weight class” in accessing important resources and competing with larger, more established firms. These developments suggest the need to reassess extant LoN, LoS, and AoN research and establish a future research agenda in the digital entrepreneurship (DE) age. Accordingly, employing a DE perspective, we will first briefly review extant LoN, LoS, and AoN research. We then examine how DTs (i.e., artifacts, platforms, and infrastructures, Nambisan, 2017) can help entrepreneurial firms alleviate liabilities and/or maximize advantages related to newness and smallness. We, thus, contribute to the nascent but growing DE literature by noting important topics that have been examined, to date. In addition, we discuss DTs’ potential impact on the entrepreneurial process, in general (e.g., Shepherd & Zacharakis,2003), as well as studying important topics such as how specific DTs may help overcome important resource challenges like raising capital (e.g., Courtney et al., 2017) and managing geographically dispersed operations (e.g., Nambisan, Zahra, & Luo, 2019). We conclude by suggesting some future DE research avenues related to these issues.
... As the trend of SME's engagement in internationalization has been significantly increased, there have been an increase of researchers in SME's which are part of international firms founded for almost a decade [8]. The internationalization of SME's in terms of capital investment, financial management, and performance, has been made aware by researchers for a long period of time [9,10]. SME's are important to the global business environment and economics since they mainly support the movement of multinational enterprises and perform labour intensive employment, which drives the Country economy. ...
Article
This study explores the business intelligence that may have an impact on human capability of Thai firms through international entrepreneurial orientation, w hich consists of management vision , innovativeness, and preparation for foreign operation. There are 449 subjects, who have worked for various small and medium enterprises (SMEs) which participated for the empirical investigation. The instrument was developed from prior literature, specifically for the firms which operated in Thailand. The Structural Equation Model was applied for summarizing the results, since the model w as composed of international entrepreneurial orientation as mediators between business intelligence and the capability of international operation. The findings imply that the utilization of business intelligence is crucial to supporting the firms' international entrepreneurial orientation which includes innovativeness and preparation for foreign operation. This supports the capability of operation abroad, measured by human resource capability.
... They view internationalization by incremental stages. On the other hand, born-global approach focuses on fast internationalization of companies (Jolly, Alahuhta, and Jeannet, 1992;McKinsey and Co., 1993;Oviatt and McDougall, 1994;Knight and Cavusgil, 1996). Oviatt and McDougall (1994, p. 49) define a born global company 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." ...
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The purpose of this study is to search the mediator roles of unique product development and global technological competence in the effect of international entrepreneurial orientation on company performance in international markets for born global companies. The study was conducted on born global companies which started its international activities in its first 7 years and operate in technoparks in Turkey. Data was collected by a questionnaire from 158 born global companies. According to the method proposed by Baron and Kenny, three models were created and compared with each other. The Structural Equation Modeling (SEM) method was applied because it is more appropriate for complex models. According to the findings of the study, unique product development and global technological competence do not have mediator roles in the effect of international entrepreneurial orientation on company performance in international markets. However, there is a direct effect of international entrepreneurial orientation on company performance in international markets. Global technological competence has a direct effect on performance in international markets. On the other hand, unique product development does not have a direct effect on performance in international markets but unique product development has a direct effect on global technological competence.
... The internationalization of SMEs has been explained as a process driven by business and business relationships (Coviello and Munro, 1997;Oviatt and McDougall, 2005). Specifically, networks compensate for small firms' inherent resource scarcity (Coviello and Munro, 1997;Crick and Jones, 2000) by providing an extended resource base that can fuel internationalization (Bell, 1995;Tolstoy and Agndal, 2010). ...
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Purpose The purpose of this paper is to create a model that compares the effects of product content differentiation and service content differentiation on small- and medium-sized enterprises’ (SMEs) perceived importance of customer reference marketing in foreign markets. Design/methodology/approach A theoretical model is developed and tested through multiple regression and mediation analysis, on an effective sample of 188 Swedish SMEs. Findings The results show that foreign market business assignments characterized by differentiated services make companies relatively more dependent on relationship learning and customer reference marketing. By contrast, situations of differentiated product content correlate negatively with customer reference marketing. Practical implications Reference customers can function as vehicles for international expansion when marketing offerings are complex. The findings imply that in service settings, SMEs need to maintain learning regimes with foreign market customers to effectively use them as references to win new business. Originality/value The study applies a service perspective to explain the contingencies of customer reference marketing, particularly in international business settings. The study contributes to international small business literature and research focusing on service–firm internationalization by explaining the marketing mechanisms at play in the internationalization of SMEs. In so doing, the findings can enrich relationship and network perspectives of internationalization and add a missing link to studies on networking and internationalization.
... Her iki ölçekteki firmalarda üretimlerinden kaynaklanan rekabet avantajları ile iç pazarlarında sağlam bir büyüklüğe ulaştıktan ve beraberindeki teknoloji, finansal kaynaklar ile beceri yönetimini elde ettikten sonra uluslararası genişlemelerine başladıkları belirtilmektedir. Söz konusu firmalardan bazıları sürecin en başında önemsiz bir ithalat talebi ile ihracata başlayıp uluslararasılaşmaya adım attıktan sonra dış ticaret departmanı kuruluşu ile devam eden sürecin sonunda zaman zaman uluslararası ticarete tam entegre küresel bir girişime dönüşebilmektedirler (Oviatt & McDougall, 1994 Süreçlere dayalı yaklaşım Uppsala Modeli (Johanson & Wiedersheim-Paul, 1975;Johanson & Vahlne, 1977; ve İnovasyon Odaklı Modeller (Bilkey & Tesar, 1977;Çavuşgil, 1980;Czinkota, 1982;Reid, 1981) ...
Thesis
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In this thesis, it is aimed to measure the effect of internationalization degree, market orientation, innovation orientation and entrepreneurial orientation of SMEs carrying out export activities and to investigate the effect of these factors on the export performance of SMEs. For this purpose, the research data were collected from the manufacturing and exporter SMEs located in Adana, operating in the manufacturing sector, by online survey method. 121 usable data were analyzed using a statistical package program. As a result of the regression analysis, the findings of the analysis showed that the degree of internationalization of SMEs had a positive and significant effect on their market and entrepreneurial orientation, but it could not be found to have a significant effect on their innovation orientation. In addition, it has been determined that the market, entrepreneurial and innovation orientation of SMEs has a positive and significant effect on the export performance of SMEs.
... set of connections and regular patterns of interaction among people sharing commonn ational background or migratory experiences" (Waldinger et al., 1980) Transnational entrepreneurs are social actors who enact networks, ideas, information, and practices for the purpose of seeking business opportunities or maintaining businesses within dual social fields, which in turn force them to engage in varied strategies of action to promote their entrepreneurial activities. (Drori et al., 2009) Ethnic Entrepreneurship and Entrepreneurs "Entrepreneurs that migrate from one country to another, concurrently maintaining business-related linkages with their former country of origin and currently adopted countries and communities" (Drori et al., 2009) International Entrepreneurship and Entrepreneurs "[t]he discovery, enactment, evaluation and exploitation of opportunitiesacross nation boarder -to create future goods and services" (Oviatt & McDougall, 2005) "Business organisations that, from inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries" (Oviatt & McDougall, 1994) " [B]orn global firms as entrepreneurial startups that, from or near their founding, seek to derive a substantial proportion of their revenue from the sale of products in international markets." (Knight & Cavusgil, 2004) Ethnic (Minority) Entrepreneurship and Entrepreneurs "Entrepreneurs that migrate from one country to another, concurrently maintaining business-related linkages with their former country of origin and currently adopted countries and communities." ...
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This paper aims to contribute to the rapidly growing transnational immigrant entrepreneurship (TIE) literature by empirically exploring eco-factors and components from entrepreneurial ecosystem perspectives. Through content analysis of the TIE concepts and definitions of the entrepreneurial ecosystem, the study defines the concept of the immigrant entrepreneurial ecosystem and suggests it as an instrument for studying the relationship between immigrant firms and their business environment. Case studies and qualitative analysis examines and evaluates the dual (host- and home-country) entrepreneurial ecosystem (DEE) and its eco-factors and components. Case studies show cultural norms, in particular, home-country national values and family values, are key players in transnational entrepreneurs who engage in transnational entrepreneurship. The research results support that the DEE framework is a key instrument for the study of the determination of transnational immigrant entrepreneurs’ motivation, strategy, and outcomes. This research theoretically contributes to TIE literature by finding new influential eco-factors and components, thus, enhancing the DEE framework. It also provides suggestions to policymakers and practitioners and further research directions.
... The research on international entrepreneurship has grown substantially in the past decades (Autio, George, & Alexy, 2011;Dimitratos, Voudouris, Plakoyiannaki, & Nakos, 2012;Gabrielsson & Gabrielsson, 2013). The main research object is new ventures defined as "companies six years old or younger" (Brush, 1992) that expand into international markets early in their life cycles (Oviatt & McDougall, 2004;Zahra, Ireland, & Hitt, 2000). However, our understanding of how and why new ventures develop internationalization strategies remains incomplete (Zander, McDougall-Covin, & Rose, 2015). ...
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Drawing on institutional theory, we propose that emerging market new venture internationalization is impacted by the entrepreneur-institution fit (the compatibility between home institutional support for entrepreneurship, entrepreneurial alertness, and political ties). Using two sets of primary data from 203 and 194 Ghanaian new ventures respectively, we tested our three-way interaction model. Our results show home country institutional support for entrepreneurship has a positive relationship with new venture internationalization. This relationship appears the strongest for founders with higher levels of entrepreneurial alertness and weaker political ties. This paper enriches the literature of international entrepreneurship and institutional theory by (1) introducing an overlooked entrepreneurship factor, entrepreneurial alertness, to the international entrepreneurship literature; (2) context-theorizing the construct of emerging market new venture internationalization; and (3) drawing upon the context-relevant formal institution (institutional profile for entrepreneurship) and connecting it with the informal institution (political ties) to investigate their impacts on new venture internationalization.
... The factors with a minor, but statistically significant impact on the motivation of ODE are social contacts and networking. These factors also have a greater impact on ODE than on NDE, which is in accordance with previous empirical studies (Oviatt & McDougall, 1994;Knight & Cavusgil, 1996;Soderquist, 2011); social networking, especially in the early stages of entrepreneurial activity, is crucial if we take into account the scarce resources of knowledge and experience of entrepreneurs in the initial stage of business. Significance is reflected in the fact that entrepreneurs, through the establishment of internal and external social networks with suppliers, customers, business partners, institutions, scientific and educational centers, etc., essentially perform the initiation of the database that accumulates information and data from multiple sources. ...
Article
We investigated the factors influencing the intention of entrepreneurs driven by opportunity (ODE) and entrepreneurs driven by necessity (NDE) in the countries of South-East Europe (SEE). The aim of the paper was to identify the key factors of entrepreneurial intentions of ODE/NDE and to propose measures the application of which can transform NDE into ODE and increase the contribution of total entrepreneurial activity to economic development. The Binomial Logistics Regression and Ordinary Logistics Regression were applied, using data for 125,444 entrepreneurs in seven countries of SEE. Our findings highlight that the intention of ODE is most influenced by entrepreneurial knowledge and experience, entrepreneurial alertness and social contacts and networks, while unemployment (as a work status) and low household income have a significant impact on the intention of NDE. The fear of failure has a negative influence on the intentions of both groups of entrepreneurs, but its impact is much more accentuated in NDE than in ODE.
... Similarly, extant research correlated entrepreneurs with high levels of prior industry experience with INV patterns (e.g. Oviatt and McDougall, 1994;Oviatt and McDougall, 2005;Servais et al., 2007;Luostarinen and Gabrielsson 2006); Westhead et al., 2001. Based on these arguments the following hypothesis is formulated: ...
... Trajectory in a GVC refers to the industry segments that lead firms expand into as they move out of their home countries. The typical start for companies, with the notable exception of born-global firms (Oviatt & McDougall, 1994), is to emerge in the home country and operate there until they start considering foreign countries as a destination for their sales, leading them to invest first in sales subsidiaries and later in production subsidiaries (Johanson & Vahlne, 1977). However, this sequential pattern of internationalization differs in the case of GVCs, as firms relocate segments of the value chain depending on the characteristics of consumers in the home country and the associated learning from these consumers. ...
Article
Extending the resource-based view that location characteristics influence firms’ resources and internationalization, we argue that the global value chains (GVCs) of lead firms from emerging and advanced economies differ in three dimensions: objectives, trajectory, and governance. First, because GVC objectives are driven to resolve home-country endowment deficiencies, we propose that emerging market lead firms use GVCs to upgrade resources while advanced economy lead firms do so to distribute activities. Second, as GVC trajectory reflects home country consumer characteristics, we argue that emerging market lead firms expand abroad to accumulate additional value-added segments of their GVCs to serve more sophisticated demands, while advanced economy lead firms disaggregate simplified segments to reduce costs. Third, since GVC governance reflects the home-country institutional quality, we propose that emerging market lead firms use more internalization, particularly acquisitions, to exert control in their GVCs, while advanced economy lead firms rely more on externalization, especially offshore outsourcing.
... Historians were the first to pay attention to the then outdated organisational form of the free-standing company (FSC) of the 19 th century (Wilkins, 1988;Wilkins & Schröter, 1998), spurring a debate between economists Mark Casson (1994Casson ( , 1998 and Jean-François Hennart (1994Hennart ( , 1998) about how to incorporate an 'anomaly' into internalisation theory. In retrospect, FSCs show similarities with 'born global' companies (Knight & Cavusgil, 2004) or 'International New Ventures' (Oviatt & McDougall, 1994;Autio, 2005), new organisational forms of the second 'wave of globalisation' (Jones & Khanna, 2006). 10 Perhaps most importantly, historians stress how internationalisation patterns changed over time and that globalisation might be reversible (James, 2002;Jones, 2004Jones, , 2006. ...
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In the aftermath of the Global Financial Crisis, the long-held confidence that ‘nationality’ would not matter in a globalised economy has dwindled. As the impact of economic and foreign policy on firms’ internationalisation and investment decisions appears to grow, and economic nationalism built on constructs of ‘nationality of the company’ gains weight, companies doing business abroad, including multinational enterprises operating in the US and Europe, are increasingly exposed to (often unexpected) implications of their ‘nationality’. We elaborate on related perspectives to the theme developed in the IB, global strategy, and international management literature and in business history. Based on these readings, we conceptualise the opaque notion of ‘nationality of the company’ and outline perspectives. We argue that ‘nationality’ appears in very different ways and suggest that research should focus more on specific political and institutional environments, and specific constructs of ‘nationality’.
Article
Purpose The purpose of this paper is to investigate the mediating role of international networking in the relationship between entrepreneurial mindset and small- and medium-sized enterprise (SME) internationalization using evidence from exporting SMEs in Uganda. Design/methodology/approach This study adopted a cross-sectional research design. Data were collected through a questionnaire survey of 206 exporting SMEs that are members of the Uganda Export Promotions Board. Data was analysed using SPSS and SmartPLS. Findings The study established that international networking mediates the relationship between entrepreneurial mindset and SME internationalization. This suggests that international networking is a conduit through which entrepreneurial mindset relates to SME internationalization. Research limitations/implications This study was conducted within the particular national context of Uganda. Replication of this research within other settings is needed to cross-validate the present findings. The study reveals that the entrepreneurial proclivity of managers and owners of exporting SMEs in Uganda can be enhanced through establishing networks in foreign markets to realize international expansion. SMEs should therefore initiate, build and strengthen partner relationships in foreign markets for successful international expansion. Practical implications The study reveals that the entrepreneurial proclivity of managers and owners of exporting SMEs in Uganda can be enhanced through establishing networks in foreign markets to realize international expansion. SMEs in Uganda should, therefore, strive to support entrepreneurial-oriented individuals to initiate and establish foreign market partnerships for successful international expansion. Originality/value To the best of the authors’ knowledge, this is the first study to investigate the mediating role of international networking in the relationship between entrepreneurial mindset and SME internationalization from a developing country of Uganda.
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EMNEs from Africa are missing in global places and spaces, and Africapitalism is also meagrely represented within the capillaries of international investments, relative to the opportunities offered by globalisation and Africa’s rich natural resource endowment. Using the Penrosian MNE growth theory, we investigate how African firms' managerial competence and entrepreneurial behaviours can be enhanced by engaging foreign executive directors during pre, early and post-internationalisation. We conduct our analysis by using data from 157 companies domiciled in 17 African countries. Our results show that whilst access to liquidity, foreign managerial know-how, and experience are key drivers of early foreign listing of African EMNEs, these factors have less effect on corporate outcomes during the 3rd and 5th year without the moderating effect of foreign executive directors. We contribute to the international business and international entrepreneurship literature by showing that African EMNEs can succeed in global spaces if they leverage the expertise of foreign executive directors as they bring idiosyncratic industry and market knowledge during early internationalisation. EMNEs intending to internationalise must use a polycentric governing board structure to reflect the intended destination country. Our results imply that early listing on the international stock markets is among the key strategies latecomers use to enter a global game they are just learning to play.
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Ekspansja na rynki zagraniczne jest szczególnym wydarzeniem w cyklu życia firm. Po pierwsze, jest stosunkowo rzadka. Po drugie, jest jednym z najważniejszych możliwych wydarzeń. Po trzecie – jednym z najbardziej ryzykownych. Stwierdzenie, że świat stał się globalną wioską, jest jedną z ulubionych fraz polityków i dziennikarzy i wydaje się sensowne. Wiele aktywności jest dzisiaj regulowanych przez światowe organizacje, np. World Trade Organization, World Bank, IMF, World Intellectual Property Organization czy OECD, i regionalne porozumienia typu EC czy USMCA (do 2020 roku NAFTA). Mamy możliwość podróżowania praktycznie do dowolnego kraju świata oraz swobodny przepływ dóbr i informacji. Dzięki telekomunikacji i internetowi możemy się komunikować w prawie dowolny sposób z całym światem. Streaming danych pozwala nam, gdy piszemy ten tekst, na bieżąco oglądać wiadomości dotyczące protestów na ulicach Hongkongu i Santiago de Chile, procesu impeachmentu prezydenta USA lub nalotów izraelskich w Syrii. Wystarczy wejść do dowolnego sklepu, aby zobaczyć towary sprowadzone z wielu krajów świata i docenić znaczenie światowego handlu. W każdym wymiarze naszego życia globalizacja świata nas dotyka, ale tym, co umyka często naszej uwadze, jest fakt, że ta globalizacja jest produktem działania istotnej mniejszości firm i korporacji. Większość organizacji gospodarczych była i pozostaje lokalna. Działa na swoim ograniczonym rynku lub co najwyżej w skali swojego kraju, bo zapewnia im to poczucie bezpieczeństwa i niskie koszty zdobywania wiedzy w ramach systemu tego samego języka, prawa i instytucji. Tylko nieliczne przedsiębiorstwa miały lub mają większy zasięg – działają w skali regionu lub dalej poza granicami swojego kraju. I co zadziwiające – tak było zawsze. Książka jest mapą, przewodnikiem po obcym terytorium, na które wkracza firma, gdy decyduje się umiędzynarodowić – a w życiu przedsiębiorstwa niewiele jest równie kluczowych i trudnych decyzji, jak ta o umiędzynarodowieniu działalności. Nawet dzisiaj, w dobie globalizacji rynków, transportu i internetu, umiędzynarodowienie jest wciąż ogromnym wyzwaniem menedżerskim z trzech powodów. Pierwszy to fizyczna odległość. W świecie internetu, taniej komunikacji, dystrybucji i dostępu do informacji odległość nie powinna mieć dużego znaczenia. Niektórzy politycy i publicyści dawno temu ogłosili, że świat się spłaszczył, a dystans przestał mieć znaczenie. Ale to nieprawda i dlatego firmy nadal umiędzynarodawiają się najchętniej do krajów najbliższych geograficznie, a dystans geograficzny stwarza więcej problemów, niż menedżerowie przewidują. Drugi powód to dystans kulturowy, zderzenie z innym językiem, obyczajami, normami, wartościami, generalnie z inną kulturą. Wydawać by się mogło, że dostęp do edukacji, informacji, nowoczesnych technologii komunikacji, sieci i innych zasobów powinien przynajmniej częściowo eliminować poczucie obcości firmy na nowym terytorium, jednak tak się nie dzieje. Trzecim powodem jest dystans administracyjny i technologiczny, czyli inne regulacje prawne oraz sposoby działania praktycznie w każdym kraju. Dlatego właściciel lub menedżer firmy, która rozpoczyna eksport lub inwestycje zagraniczne, jest odkrywcą, obcym na nowej ziemi i musi odpowiedzieć sobie na pytanie, jak jego firma ma się odnaleźć w tej zupełnie nowej sytuacji. Jak budować wiarygodność marki na nowym terytorium i w nowym otoczeniu biznesowym? Jak informować nabywców o ofercie firmy? Jak tłumaczyć jej zalety? Jak sobie radzić z oczekiwaniami i wymaganiami nowych nabywców lub partnerów? Te i inne pytania rodzą się na bieżąco i dlatego umiędzynarodowienie jest niczym maraton z przeszkodami, długi dystans pokonywany w krótkich odcinkach. Umowna i ogólna nazwa tych przeszkód brzmi „dystans”, bowiem dotyczą one tego samego – odkrywania, że zdarzenia i rzeczy mogą mieć inny sens i znaczenie w nowym, międzynarodowym kontekście działania firmy. Książka mówi o tym, jak z pasją radzą sobie z tymi wyzwaniami polscy menedżerowie i ich firmy oraz jakie lekcje płyną z tego dla tych, którzy dopiero wstąpią na wyboistą ścieżkę umiędzynarodowienia.
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Este artigo tem como objetivo avançar o conhecimento teórico acerca do desempenho de International New Ventures (INVs). Esta temática tem sido tratada a partir de uma conjuntura multidisciplinar, com estudos que seguem fluxos de pesquisas relacionados, ao marketing, empreendedorismo e negócios internacionais. Em função desse caráter diversificado dos estudos, verifica-se certa fragmentação na literatura que desencadeia a necessidade do desenvolvimento de uma estrutura conceitual de integre esforços interdisciplinares e que seja capaz de explicar integralmente o desempenho dos INVs. Identificada essa lacuna, o presente estudo propõe uma estrutura conceitual composta pelas principais características organizacionais presentes na literatura dos novos empreendimentos internacionais, a saber: experiência internacional, orientação empreendedora, orientação para o mercado, relações de rede e capacidades dinâmicas. Dessa maneira, espera-se que esta estrutura seja testada em pesquisas empíricas futuras, gerando avanços na literatura a partir de uma visão holística acerca dos elementos do desempenho dos INVs.
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Research shows that early internationalization is more likely when founders have international and business-related experience. But what if experience was obtained in other ways? We study the scientist-founders of 149 academic spin-offs (ASOs), using cognition theory to argue for a curvilinear relationship between breadth of pre-founding R&D collaboration and internationalization timing. Our longitudinal study combines survey and patent data to show that increased breadth of collaboration with international scientists increases and then decreases the likelihood of early internationalization. The results are similar but less robust for collaboration with industry partners. Our findings suggest that studies on experience in new venture internationalization underestimate the role of R&D collaboration and the research-based heritage of many new firms.
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Recent studies have attested to both the gradual rise in the numbers of female entrepreneurs operating in foreign markets and an important enabling role of networks in the internationalization process. However, despite these developments, the actual characteristics of female international entrepreneurial networks and how these different constituent properties have been leveraged as part of the internationalization process is less well understood. This article contributes to this gap in knowledge by decomposing the networks of female international entrepreneurs into structural and relational components using ego-network analysis, prior to examining how these different components were instrumental in facilitating international expansion. Our study involves eight female international entrepreneurs in the fashion industry from Denmark. Findings from this mixed-methods study show that female international entrepreneurs typically have small, dense, and homogeneous network structures, with strong ties, reciprocity, and trust. Furthermore, intra-industry contacts were mobilized considerably more that affective networks, while many network ties were not leveraged to expand internationally.
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Internationalization of small and medium-sized enterprises is getting more attention from researchers who study different paths, strategies, entry modes and their behavior on international market, while also identifying their limitations, potential risks, and threats. Globalization, especially the growth of online sales channels and fast (and affordable) communication have simplified the complexity of internationalization, which has made it easier for small and medium-sized enterprises to participate in the international market. Gradual step-by-step internationalization process and long-term planning have been replaced with new, fast market entrance strategies. Lately, many companies are being founded that put their focus and operational activities on internationalization from the beginning (born global). This paper gives an overview of the main internationalization theories (traditional internationalization theory, the network theory, and international entrepreneurship theory) and discusses their importance. Additionally, it examines the motives for the internationalization, main barriers, main risks, and explores the critical success factors that are important in the process of internationalization. Information provided can be useful to the companies that consider expanding their business operations abroad.
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Drawing upon the extended resource‐based view, we examine the moderating effects of resource synchronization on the performance implications of the speed at which international new ventures (INVs) internationalize into emerging economies (EEs) versus developed economies (DEs). Using a sample of INVs from China, we discover that both speeds of internationalization into EEs and into DEs positively affect international performance, but the speed of internationalization into DEs has a greater influence. We also find that although resource synchronization positively moderates the relationships between the two speeds and international performance, it has a greater moderating role in the link between the speed of internationalization into DEs and international performance. Our findings not only contribute to the INV approach by addressing the inconsistencies about the internationalization speed and performance relationship, but also advance the resource‐based view by offering a more complete understanding of resource‐based performance advantages.
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Cyfrowe nasycenie rzeczywistości zapewniło wielu firmom wyjątkowe możliwości rozwoju, czego najlepszym przykładem są globalne korporacje technologiczne (GKT). Dzięki technologiom mogą one znacznie lepiej zrozumieć potrzeby swoich klientów i poprzez zróżnicowane kanały komunikacji zapewnić kompleksową obsługę wszystkich ich potrzeb łącznie z tymi, których jeszcze nie postrzegają. Coraz częściej przedsiębiorstwa te, choć nie tylko one, rozwijają się w sieci złożonych powiązań, których „szkieletem” są ekosystemy cyfrowe. W takich warunkach powstaje pytanie jak postępująca platformizacja gospodarki wpływa na rozwój i miejsce w gospodarce światowej korporacji transnarodowych? Czy KTN XX wieku różnią się od tych funkcjonujących w erze gospodarki cyfrowej, a jeżeli tak, to czym się różnią? Odpowiedź na powyższe pytanie, tj. identyfikację zjawiska platformizacji w kontekście jej wpływu na istotę funkcjonowania korporacji transnarodowych i współkształtowanego przez nie otoczenia, rolę w przeobrażeniach dokonujących się w pozyskiwaniu zasobów i ich rodzajów, relacjach z klientami, jak też elastyczność strategii działania w warunkach niedostosowań tworzącego się środowiska instytucjonalnego do potrzeb gospodarki cyfrowej, jest celem publikacji.
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We study how international knowledge sourcing affects the innovation performance of firms of different ages (from inception to mature). Specifically, we analyze (i) the contribution of international R&D sourcing to product innovations having a high degree of novelty—i.e. products that are new to the market; and (ii) the moderating role of firm age in this relationship. In doing so, we contrast two arguments that have created a debate in the literature: One is that experience plays a key role in successfully managing the inherent complexity of offshoring; another is that firms internationalizing at an early stage enjoy the learning advantages of newness. Based on a panel of over 9000 firms based in Spain spanning from 2008 to 2016, our findings indicate that international R&D sourcing is positively related to product innovations having a high degree of novelty, and that firm age exerts a negative moderating effect on the international R&D sourcing-innovation relationship. These results allow us to conclude that the innovation benefits of internationalizing the acquisition of knowledge are greater for younger firms. We identify the advantage of firms performing international R&D sourcing during their early stages and introduce the concept of ‘born-international sourcers’, to identify firms that engage in international sourcing strategies from an early stage.
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Despite the exponential growth of crowdfunding in recent years, research on the role it plays in business internationalization is still embryonal. Building on the Resource Based View (RBV) and Knowledge Based View (KBV), this study explores how SMEs can use equity crowdfunding (ECF) and reward crowdfunding (RCF) to internationalize and the related potential limitations. Using an inductive qualitative research design, based on multiple case studies of Italian SMEs, our study showed that ECF and RCF models help SMEs in acquiring the financial resources needed to internationalize and, at the same time, offer significant added value to their internationalization. Our findings support the idea that ECF and RCF play a key role in helping companies to overcome their resource limitations in regard to internationalization, not only in terms of the provision of financial resources but, above all, by compensating for any lack of knowledge on aspects relevant to the internationalization process. Furthermore, our results show the limitations of SMEs use of crowdfunding in order to internationalize (i.e., a lack of ad hoc e-commerce policies in relation to equity crowdfunding and to the regulation of the pre-ordering mechanism in the reward model). This paper concludes by discussing the theoretical and managerial contributions to the international business domain, and highlighting fruitful avenues for future studies.
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Internationalization is, by nature, a dynamic and continuous process that unfolds over time. However, the extant literature on international entrepreneurship primarily focuses on the antecedents that influence the initiation of internationalization and downplays its post-entry process. Specifically, little research has examined how early internationalization relates to subsequent geographic expansion. To bridge this gap, we draw upon Penrose’s theory of firm growth and a judgment-based view of entrepreneurship. We posit that earlier resource commitment to foreign countries enables entrepreneurs to quickly start managerial learning based on their experience of experimentation activities in foreign markets, facilitating entry into new foreign markets. Especially, we hypothesize that the operational experience acquired through earlier foreign direct investment is positively associated with subsequent geographic expansion, and the location where to accumulate operational experience moderates the association. The results of our longitudinal 19-year (2000–2018) study on 75 Japanese early internationalizing firms provide evidence for our hypotheses.
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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
Article
Purpose Striving for growth since their early stages, many small and medium enterprises (SMEs) are increasingly adopting an entrepreneurial behavior based on a rapid and early international expansion. Although some extant research have been done on the dynamic capabilities of SMEs’ accelerated internationalization–born global (BG) SMEs, no study was, to the best of the authors’ knowledge, carried on the microfoundations underlying this phenomenon. This paper aims to fill this gap in the literature and contribute to the growing theory development of SME’s microfoundations. Design/methodology/approach This paper proposes an integrated conceptual framework to better identify the microfoundations that influence born global SMEs internationalization by integrating individual, structural and processual – the microfoundations approach within the dynamic capabilities of sensing, seizing and reconfiguring. Findings Our propositions argue that born global SMEs are characterized by dynamic capabilities based on a combination of some individual (manager’s human and social capital, such as its personal orientation, experiences, cognition and intuition), process (market learning, technology development) and structural (agility, communication/coordination) factors that helps a lot in the acceleration of the internationalization process. Research limitations/implications Empirical study should be done to enrich the conceptual material. Practical implications To identify some international opportunities, companies should rely on the entrepreneurial orientation of its managers, its experience and network as well as the market-related learning and technological processes. The managerial cognition is important to seize opportunities while the manager’s human capital is needed to reconfigure resources while internationalizing rapidly. Social implications This research shows that individual attributes are important but insufficient to accelerate the internationalization process. Some individual characteristics are more useful in sensing international opportunities rapidly, such as manager’s international entrepreneurial, past experience and network, However, the managerial cognition is important to seize opportunities, whereas the manager’s human capital is needed to reconfigure resources while internationalizing rapidly. Originality/value Born global firms must develop several dynamic capabilities to foster their accelerated early international development. This paper gives insights about the individual, structural and processual of sensing international opportunities, seizing and reconfiguring resources and competencies for born globals.
Thesis
Due to the increasing involvement of enterprises in international markets, the strategic management of the transition of an organisation from purely domestic into a multinational organisation has become increasingly important. The literature shows that a significant number of the organisation that choose to internationalise are SMEs which command little resources to enable this transition. Increased diversity, ambiguity and complexity as well as uncertainty, instability and high levels of competition are considered to be the characteristics of the context of SME internationalisation and the root cause of some of the challenges that SME managers face. This thesis focuses on the ever-growing emphasis on the management of small and medium sized enterprises (SMEs) specifically by exploring the managerial competencies required for SME internationalisation. It aims to identify the managerial competencies required for SME internationalisation. This qualitative study is informed by the grounded theory methodology. Using semi-structured interviews, primary data was collected from interviewing 52 SME managers who were directly involved in the internationalisation of their respective SME. In contrast to existing thinking in strategic management, which outlines a set of competencies (a functionalist perspective) which can be dynamically arranged (dynamic capabilities/entrepreneurship perspective), this study highlights that managerial competency is a unique, individual and dynamic experience. The study highlights that, in practice, SMEs do not engage in a great deal of systematic strategic planning and their managers have significantly different experiences of the SME internationalisation process. This becomes evident in how they perceived themselves and their different individual experiences during the internationalisation of their SMEs. Additionally, the findings indicate that managerial competency may involve an interaction and interrelation with information and the dynamic arrangement of functional competencies, but the focus of academics and practitioners needs to shift to understanding internationalisation as an experience. This thesis investigates the importance of agency and structure and how competency is a negotiation with the environment that is driven by the SME agent (i.e., the manager) via the managerial experience of SME internationalisation. The implication of the thesis is that there is a need for a paradigm shift in existing thinking from theorising managerial competencies required for SME internationalisation (functionalist perspective) to theorising individual managerial experiences of SME internationalisation i.e., agential experience (agency theory perspective). These are experiences which support SME managers in managing their organisations throughout the transitional period and when their organisation has been fully internationalised and is competing in the diverse international environment. Thus, the study highlights that the ontology of SME managerial competency is not understood in full currently. It identifies the paradigm shift that is needed and has developed the theoretical understanding of managerial competencies as an agential experience. The empirical approach reflects future research.
Article
Purpose The paper aims to measure the nature and extent of international diversification followed by Indian companies over the period 2009–10 to 2017–18. The study also aims to assess the pattern of transition of companies to various strategies of international diversification. Design/methodology/approach Jacquemin and Berry’s (1979) entropy approach has been applied to measure the extent and assess the nature of international diversification. Further, the study deploys two-dimensional categorical framework advocated by Vachani (1991) and categorizes the firms into four international diversification strategies. Findings Larger proportion of companies in internationally low diversification (ILD) strategy reveals low extent of international diversification of Indian companies. The pattern of diversification depicts that the trend of moving forward is speeding up sequentially toward higher strategies of growth. Both the extent and pattern depict that the nature of diversification is shifting from relatedness to un-relatedness with transitions from intra-regions to inter-regions. The study confirms the applicability of eclectic theory and psychic distance Uppsala model in determining the preference of international diversification strategies and process of internationalization respectively in Indian firms. Originality/value The paper is first of its kind on account of several reasons. First, such a comprehensive evaluation of preferences for international diversification strategies has never been taken up with reference to emerging economies, especially India. Second, the paper is not static and does not limit itself only to the identification of favored strategies of Indian companies but also gauges the transitional behavior of Indian companies across different strategies at different points of time. In fact it is the first study to statistically research the applicability of psychic distance model in firms in emerging economy. Third, the results not only measure the quantum of international diversification but also assess the extent of relatedness and un-relatedness followed by Indian companies.
Article
Purpose This paper aims to explore different strategic avenues in international markets. In particular, the authors investigate the role of four marketing tactics – marketing network, domestic network, standardization/adaptation and positioning. The authors aim at identifying optimal use of these strategic vehicles to achieve firm performance. Design/methodology/approach The authors construct a database of 132 Norwegian exporters and identify, through cluster analysis, three different categories of firms. They use multi-group analysis to explore strategy–performance pattern in each group. Findings All four strategic levers impact positively on the performance, but only two of them (marketing networks and positioning) with major impact. Standardization and domestic networks play a minor role. Based on these strategic levers, the authors identify three strategic groups (opportunists, networks seekers and global marketers) with different optimal export strategy patterns. The authors argue that these groups represent firms in different stages, epitomizing a learning process in three stages. Research limitations/implications A broader perspective of strategy variables should be included to get a more complete picture of the “optimal” model for different groups of exporters. Other marketing mix factors and the firm’s stance toward governance in international markets (operation modes) should therefore be included in the repertoire of strategy drivers determining group membership and to analyse their pattern. Practical implications Opportunists are advised to focus on positioning through domestic network relations; network seekers should concentrate on building marketing networks. Global marketers may carry out standardization strategies – preferably in collaboration with their marketing partners in export markets. For the two other groups, there is no evidence that speak in favour of such approach, nor for its counterpart, adaptation. For export promotion agencies, the authors suggest enhanced support to establish network partners. Originality/value The authors introduce strategic levers not yet explored in the export literature. Furthermore, they use a contingency causal approach to explain differences in strategy development (in international markets) and the link with performance.
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