Article

Conceptual and methodological underpinnings in the study of rapid internationalizers

Authors:
To read the full-text of this research, you can request a copy directly from the author.

No full-text available

Request Full-text Paper PDF

To read the full-text of this research,
you can request a copy directly from the author.

... Other literature reviews were found that covered earlier periods (e.g. Hurmerinta-Peltomäki, 2004;McDougall et al, 2000;Boojihawon, 2004;Etemad, 2004), and 2. The authors were interested in identifying which stream of internationalization research is popular in the said period (i.e. what lenses were being used to examine internationalization during this period), given that; 70's saw the emergence of internationalization examined through process and stage perspectives, mid to late 80's saw more of a network perspective and the 90's saw the emergence of the 'born-global' International New Venture perspective (Gelbuda, 2005, p. 4-20). ...
... In any case, these companies have a head start over companies starting from scratch, thus enabling a rapid internationalization process. Neither of these two notions are new as such; Reuber and Fischer (1997); Madsen and Servais (1997) and even the landmark article by Oviatt and McDougall (1994) pointed out the importance of looking at managers' previous experience in born global firms, whereas for instance Hurmerinta-Peltomäki (2004) and Auito (2005) has indicated that there is a need to look at the background of these firms. ...
... While time in internationalisation is a very complex issue (Hurmerinta-Peltomäki, 2003), in international entrepreneurship research it typically refers to either the early start of international activities or the speed or pace of international growth (Zucchella, Palamara & Denicolai, 2007). Interest in the early internationalisation of the firm emerged in the late 1980s when researchers interested in SME internationalisation began to notice this phenomenon emerging from large data sets (Christensen, 1991;Hurmerinta-Peltomäki, 2004). However, international entrepreneurship scholars have been particularly interested in firms that are 'born' with the intent to serve markets quickly and less in accidental internationalisers (Coviello, 2015). ...
... All others took 1 to 6 years, with a median of 1 year. International New Ventures are often identified when internationalization occurs early in the lifetime of the firm, normally within 3 to 6 years (Coviello and Munro 1997;Hurmerinta-Peltomäki 2004). However, a closer examination reveals that if one considers the definition of International New Venture as Bventures competing primarily in their regional markets (nearby countries) or in a relatively limited number of countries^ (Oviatt and McDougall 1994), these three seeming outliers may still be reasonable candidates to remain in the study: international intensity (international activities as a percent of total activities), number of alliances, and number of countries where they were engaged did not reveal a particular pattern for these firms. ...
Article
Full-text available
Prior research on the selection of international alliance partners calls for investigation of the potential specificity of selection criteria for evaluating partners for alliances with different objectives or functions. The present study responds to this need and contributes to the development of the field of international entrepreneurship by examining the relation between the alliance function and the criteria chosen. We studied three alliance functions: R&D, production, and marketing. Second, for each alliance function, we analyzed the criteria selected within two contexts: developing countries and those that consider emerging markets in their partner choice set. Data were collected through semi-structured interviews with 25 executives from international new ventures (INVs) in two major North American biotechnology clusters, representing 239 alliances; 65.7 % of these were signed with international partners. Results indicate that, aside from compatibility/complementarity of resources (R&D and production alliances), all criteria used within a single function are unique to that function. Furthermore, these criteria differ somewhat when the potential partners considered by a firm include those from both emerging and developed markets, compared with firms that limit potential partners to those in developed market contexts. Finally, the study reveals that respondent firms integrate country, industry, and market attractiveness factors with partner selection criteria for marketing alliances. This suggests that, for many firms, market choice and partner selection are not successive steps. The study’s originality lies in its focus on the relationship between alliance function and partner selection criteria used by INVs as well as within different contexts.
... All others took 1 to 6 years, with a median of 1 year. International New Ventures are often identified when internationalization occurs early in the lifetime of the firm, normally within 3 to 6 years (Coviello and Munro 1997;Hurmerinta-Peltomäki 2004). However, a closer examination reveals that if one considers the definition of International New Venture as "ventures competing primarily in their regional markets (nearby countries) or in a relatively limited number of countries" (Oviatt and McDougall 1994), these 3 seeming outliers may still be reasonable candidates to remain in the study: international intensity (international activities as a percent of total activities), number of alliances, and number of countries where they were engaged did not reveal a particular pattern for these firms. ...
Chapter
Computerized simulation games are becoming increasingly popular in marketing programs and in business school curricula in general. Unfortunately, empirical evidence concerning the impact of this method of instruction is contradictory. Furthermore, few studies have investigated the impact of complex business games played over a long time period. This paper reports the preliminary results of an empirical investigation of the impact of a complex business simulation which focuses on product management decisions over eight simulated years. Preliminary analysis suggests that participants' confidence in applying learned marketing concepts and tools to real-world situations increases significantly due to participation in the simulation.
... All others took 1 to 6 years, with a median of 1 year. International New Ventures are often identified when internationalization occurs early in the lifetime of the firm, normally within 3 to 6 years (Coviello and Munro 1997;Hurmerinta-Peltomäki 2004). However, a closer examination reveals that if one considers the definition of International New Venture as "ventures competing primarily in their regional markets (nearby countries) or in a relatively limited number of countries" (Oviatt and McDougall 1994), these 3 seeming outliers may still be reasonable candidates to remain in the study: international intensity (international activities as a percent of total activities), number of alliances, and number of countries where they were engaged did not reveal a particular pattern for these firms. ...
Conference Paper
Full-text available
This article contributes to the development of the field of international entrepreneurship by examining how international new ventures (INVs) choose alliance partners. More specifically, it examines the influence of alliance objectives (function) and the level of economic development (context) on partner selection criteria used by INVs. Data were collected through semi-structured interviews with 28 executives from INVs in two major North American biotechnology clusters, representing 430 alliances. Results indicate that selection criteria do effectively differ across alliance function (R&D, production, marketing). Furthermore, it is shown that firms do use somewhat different criteria when their evoked set of potential partners includes both emerging and developed markets compared to firms that limit potential partner search to developed markets. The study’s originality lies in the fact that this is the first known study to show that partner selection criteria used by INVs are function and context specific.
... Finally, it involves setting an aim at value creation for the company, regardless if the profits may seem in the long-distant future (Dimitratos and Plakoyiannaki, 2003). Oviatt and McDougall (2005) advocate that the field of international entrepreneurship is an important topic, from which the term 'international new venture' is found within and explaining its acceleration of internationalisation process is at the centre point of research (Hurmerinta-Peltomaki, 2004). These new ventures are those, which are found actively engaging in international activity at an early stage in the business lifecycle, which is a form of early internationalisation. ...
Article
Full-text available
The nature of born global firms which from inception, seek to derive significant competitive advantage from the use of resources and the sales of outputs in multiple countries remains poorly understood. Given the lack of resources which born globals tend to have compared with larger international competitors the importance of social capital and network ties in addressing their liabilities of newness and smallness have received some attention. However, how these network ties actually operate and the nuances inside of these networks are as yet not fully understood. This paper seeks to address this knowledge gap by attempting to unpack the black box of the social networks and connectors which born globals draw upon in their internationalisation efforts. Based on a study of the indigenous Irish digital, film and TV production industry, our research points to a suite of both weak and strong connectors which facilitate the internationalisation of the firms in our sample.
... Knight (2001) stated that exporting and other international business involvements were strong and viable alternatives for firms, particularly small and medium-sized firms. Many studies refer to these firms using several terms such as, a global start-up (Jolly et al. 1992), born-global firm (Knight and Cavusgil 1996), international entrepreneur (Jones 1999) and rapid internationalizer (Hurmerinta-Peltomäki 2004). This study employs the term "early internationalizing firm (EIF)" used by Rialp et al. (2005) and defines these firms as those that internationalize through various entry modes, such as exporting (Madsen and Servais 1997),and begin to receive revenue from international business activities within the 6 years of founding (McDougall et al. 2003;Pla-Barber and Escriba-Esteve 2006). ...
Article
Full-text available
This study aims to enhance our understanding of the role of entrepreneurs’ human capital components and the influences on learning orientation in early internationalizing firms. Drawing from the integration of human capital theory, resource-based view theory, learning theory, and on the literature of international entrepreneurship and strategic management, a research model is proposed and consists of five constructs, namely international business skill, international business knowledge, entrepreneurial competence, managerial competence and learning orientation. The empirical analysis was carried out on a sample of 158 early internationalizing firms in a food industry in Thailand. Partial least square technique was conducted to test the structural equation models and hypotheses. This followed by some illustrative case studies as supplementary to the empirical findings. The results confirm our hypotheses and support the proposed research model. This study yielded interesting findings in which an entrepreneur’s skill and knowledge in international business enhance entrepreneurial and managerial competencies. These competencies, in turn, play an important role in influencing a firm’s strategic learning orientation
... However, more and more firms start operating internationally and globally with or shortly after inception without going through the phases of the traditional stage model (Bell, McNaughton & Young 2001;Dickson 2007;Kuivalainen, Sundqvist & Servais 2007;Oviatt & McDougall 1997, 2005Rialp, Rialp & Knight 2005;Zucchella & Scabini 2007). Firms like these are called 'international new ventures' , 'instant internationals' (Litvak 1990), and 'rapid internationalizers' (Hurmerinta-Peltomäki 2004) or simply 'born globals' (Knight & Cavusgil 1996;Rennie 1993). With growing research in this area, additional terms have emerged which all try to express the rapid speed of internationalization (Gabrielsson 2005). ...
Article
The globalization process stimulates more and more start‐ups entering international markets at their earliest convenience. Supported by modern IT and logistics systems, this option is available for many ventures that become more and more independent from their country‐of‐origin. For transnational companies, as heterarchical networks without typical internal hub structures and a high degree of responsiveness, this holds particularly true. This is the reason why this paper focuses the ‘born transnational’ type of international entrepreneurship. The question arises how international ventures achieve international competitiveness. This paper argues that the pace and the alignment of processes of external and internal learning are of utmost importance. Knowledge generation, absorption, integration, and company‐wide transfer play a pivotal role in this regard. Insofar, the research question of the paper is: What are the factors that accelerate organizational learning of ‘born transnationals’? Based on competence‐based theory and a particular model of organizational learning, the paper presents research propositions on the learning process of ‘born transnationals’.
... For example, Ganitsky (1989) analyses 'innate exporters' which are not only more flexible but also have a management that is more strongly internationally orientated than that of so-called 'adoptive exporters'. With growing research in this area, additional terms have emerged which all try to express the rising speed of internationalisation. Oviatt and McDougall (1994) refer to such firms as 'international new ventures', Preece et al. (1999) talk about 'early-stage technology based firms', Litvak (1990) refers to them as 'instant internationals', Jolly et al. (1992) speak of 'global start-ups', Jones (1999) uses the term 'international entrepreneur ' and Hurmerinta-Peltomäki (2004) names them 'rapid internationalisers'. Most commonly used in the literature is the expression 'born global firm', coined by Rennie (1993) and also used by Aspelund and Moen (2001), Autio et al. (2002), Gabrielsson and Kirpalani (2004), Hashai and Almor (2004), Knight and Cavusgil (1996), Larimo (2003), Madsen and Servais (1997), Schmid and Schmidt-Buchholz (2002) and Schmidt-Buchholz (2001). ...
Article
Abstract Onthe background of innovations in technology, globalization and worldwide customers more and more firms internationalize rapidly into foreign markets,with opera- tions that show a high level of commitment such as joint ventures, wholly-owned sub- sidiaries or franchising,networks. Due to this increasing speed of internationalization of many firms, the article intends in an explorative way to identify initiating forces and suc- cess factors of so called Born Global Firms. After reviewing the relevant literature, a
... hrms is increasing fast, the variety of the terms and the inconsistency of the definitions employed are strongly present in the research (see the conceptual and methodological discussion by Coviello and Jones, 2004;and Hurmerinta-Peltomäki, 2004). In many instances, the high-technology character of the phenomenon was stressed (cf. ...
Article
Full-text available
Different from the earlier research with its tendency towards a rather homogenous view on International New Ventures (INVs), the contribution of this study is the identification and understanding of the possible variety among INVs. The study aims at exploring the following: (1) Are INVs different from one another in terms of their international development? and (2) If they are, how and why the differences are manifested in these firms? The pioneering INV-framework by Oviatt and McDougall (1994) is applied, accompanied by a long-term perspective on their development and inclusion of several factors as possible agents of the differences. Based on the analysis of eight INVs, the results highlight the importance of the founding conditions, the internationalization motives and the international experience of the founding managers on the INV's development in the early phase. Both initial and subsequent development of the INVs varied with regard to geographical breadth and type of operations abroad, and the results call for a framework that goes beyond typological categorization and includes various situational factors. The implications for theory and practice are provided.
... Despite all this interest, however, little is known about the actual criteria that the entrepreneurs, founders and lead executives of new ventures consider ex ante when making decisions about international entry (Buckley et al., 2007). While a number of studies have considered the particular motivations of individual entrepreneurs to do business abroad (Hurmerinta-Peltomäki, 2004;Johanson & Vahlne, 2003), prior research implicitly assumes that when making decisions about their new ventures, entrepreneurs consider the already-studied factors that facilitate international entry together with the factors that may make such entry more difficult. But is this necessarily the case? ...
Conference Paper
Full-text available
Although much research has investigated the factors that explain new ventures' successful entry into international markets, after a firm has internationalized, little is known about the considerations that guide entrepreneurs' decisions in this regard, before they make such decisions. Because of this, there is a danger that policy efforts meant to encourage early internationalization focus on levers that do not actually influence entrepreneurs' decisions. To address this problem, we use survey and conjoint analysis techniques to reveal entrepreneurs' "theory in use" regarding early internationalization decisions. In addition, we explore whether human capital factors influence entrepreneurs' reliance on distinct sets of decision factors.
... Some researchers even consider a global mindset a prerequisite for early internationalisation (Harveston, Osborne, & Kedia, 2002;Knight, 2001). Therefore it is not surprising that most empirical studies on born globals have included -at least implicitly -the global mindset of the manager in their definition (Hurmerinta-Peltomäki, 2004). ...
Article
This paper contributes to the literature on born globals by introducing the concept of strategic orientations into this domain. Only few empirical studies have investigated them in this context. The study extends the existing knowledge on born globals and responds to complaints about lacking empirical research in this as yet infant field. The literature on strategic orientations and born globals was used as a basis for drawing up the hypotheses, which were tested with data from 299 Finnish companies representing several different industrial sectors. The findings indicate that strategic orientations are related to a firm's international performance. This relationship is moderated by its international growth strategy.
Thesis
Full-text available
Geçtiğimiz yüzyılda küreselleşmenin çok yoğun olarak etkilediği KOBİ’lerin bir kısmı küreselleşmenin bireyler, işletmeler ve ağlar üzerindeki pozitif etkilerini çok hızlı bir biçimde fırsata çevirmiş ve kısıtlı finansal kaynaklarına rağmen kuruluşlarıyla beraber veya takip eden çok kısa süreler içinde uluslararası faaliyetlerde bulunmaya başlayabilmişlerdir. Bu değişimle hızlı uluslararasılaşan işletmeler literatürde en sık olarak “Küresel Doğan İşletmeler” adıyla anılmaktadır. Bu çalışma ile gelişen teknoloji ve internetin sağladığı imkânlarla çok daha hızlı uluslararasılaşabilen küresel doğan işletmelerin web sitesi kullanımları ile e-pazarlama odaklılıklarının incelenmesi amaçlanmıştır. Çalışma, çoklu örnek olay araştırma desenine uygun olarak, konuyu aynı çerçeve içinde farklı açılardan incelemeye olanak sağlayacak şekilde farklı yöntemler kullanılarak tasarlanmıştır. Araştırma üç temel aşamadan oluşmaktadır. İlk aşamada Türkiye’de KOBİ’lerin uluslararasılaşması ile ilgili çeşitli kurum ve kuruluşlardan üst düzey yetkililer ile derinlemesine görüşmeler gerçekleştirilmiştir. İkinci aşamada küresel doğan işletme profiline uygunluğu filtre sorularla belirlenmiş olan 31 adet işletmenin üst düzey yetkilisi ile mevcut literatür ve ilk mülakatlardan elde edilen verilere uygun olarak hazırlanmış olan yarı yapılandırılmış form aracılığıyla görüşmeler yapılmış ve daha sonra e-pazarlama odaklılık anketi uygulanmıştır. Üçüncü aşamada ise, ilk iki aşamada elde edilen veriler ışığında oluşturulan kodlama formu ile söz konusu işletmelerin web siteleri, önceden kodlama ile ilgili eğitim verilen iki farklı kodlayıcı tarafından içerik analizine tabi tutulmuştur. Çalışma sonunda görüşme çıktıları, e-pazarlama odaklılık anketi ve içerik analizi sonucunda elde edilen bulgular birbirleriyle karşılaştırılmak suretiyle analiz edilmiştir. Çalışma, Türkiye’de uluslararası girişimci niteliğindeki küresel doğan işletmelerin büyük bölümünün basit düzeyde e-pazarlama odaklı olduklarını destekler niteliktedir. İncelenen işletmelerin, e-pazarlama odaklılık ve etkin web sitesi kullanımı gerekliliğini zihinsel olarak kabul etmelerine karşılık; e-pazarlama uygulamalarına yönelik alt yapı oluşturma, geliştirme ve uygulamada yeterince aktif davranmadıkları gözlenmiştir. İşletmelerin büyük çoğunluğu belirgin e-pazarlama stratejilerine sahip olmadıkları gibi, bu işletmeler için web siteleri ve ilişkili internet fonksiyonları, çoğunlukla ürün ve işletme bilgilerini aktarmak için kullanılan sınırlı etkileşim araçlarıdır.
Article
Purpose: This paper challenges the up to now mainly product-centered view on international new ventures by analyzing the influence of service orientation on new venture internationalization behavior. It especially focuses on the utilization of specific market entry modes as a result of a growing service orientation. Design/methodology/approach: Newness and complexity of the topic call for a qualitative-empirical research approach. Therefore, the paper is based on an in-depth multiple-case study of six international new ventures operating in fashion and lifestyle industry. Findings: This paper shows that service-oriented international new ventures make use of different market entry modes at the same time. Service-related capabilities allow them to especially utilize cooperative market entry modes to fuel lacking market knowledge and thus to overcome resource constraints in value creation processes. Originality/value: The paper contributes to a more holistic understanding of international new ventures as it provides empirical evidence for the importance of service-related aspects in new venture internationalization. Furthermore, the paper extends international new venture research by not only considering an early international market entry, but also other aspects of internationalization such as the type of offerings or the preferred market entry modes. Article Classification: Research Paper. Keywords: International New Ventures; Service Orientation; Service-related Capabilities; Market Entry Modes.
Chapter
Der Internationalisierungsprozess von Unternehmungen beginnt zumeist nach einer langjährigen erfolgreichen Tätigkeit auf dem Heimatmarkt. Ausgelöst von der Nachfrage ausländischer Kunden oder der aktiven Suche nach neuen Absatzmärkten entscheiden sich Unternehmungen oft viele Jahre nach ihrer Gründung dazu, ihre Produkte und Dienstleistungen auch außerhalb ihres Heimatlandes anzubieten. Die Internationalisierung erfolgt dabei zumeist in Form relativ risikoloser Export- oder Lizenzgeschäfte, die aus den vergangenen Erlösen auf dem Heimatmarkt finanziert werden.
Article
Full-text available
As a result of the rapid prevalence of Information Technologies, disappearance of the borders between countries as a sequel of globalization and the fast increase in the number of Small and Medium Sized Enterprises (SME)s, products and services similar to each other are emerging. Within such a context, firms are striving to increase the demand for their products and gain attention through differentiation both in local and global markets. Due to its important role in international trade of countries, SMEs are being considered as major role players in economies and therefore became an attractive area to explore by researchers. The literature on the internationalization of firms is predominantly build on research from the US and western European countries while there is a few number of research conducted in Turkey (Bal and Kunday, 2014; Şengüler, 2013; Koçak and Abimbola, 2009; Çavuşgil, Knight and Üner, 2011). The internationalization of SMEs has been mostly investigated within the marketing literature and there is a lack on this subject within the Management and Organization literature. Setting out from this need, the aim of this paper is to investigate the entrepreneurial skills of the entrepreneur who founded the SME, the motive of the entrepreneur for starting the business, the innovativeness of the firm, and the relationship of these factors with the internationalization of firms. The sample of the research consists of entrepreneurs who have been reached via the Global Entrepreneurship Monitor (GEM) study in 80 countries between the years 2000-2012. Hierarchical Regression Model was used to test the hypotheses at macro level including data from each country. Research findings and implications are presented and discussed.
Article
Full-text available
The article focuses on geographic distance to foreign markets affecting firm internationalisation. The main objective of the article is to verify whether geographic distance to the border (localisation of the firm) has an impact or effect on the internationalisation process. The V4 research survey results and the sample of 190 internationalised Polish businesses were used in order to meet the objective and verify the assumed hypothesis. The results of the Mann-Withney test, Student’s t test as well as ANOVA analysis prove that businesses operating in bordering regions are more internationalised than these operating in inner regions of Poland. Consequently, the research hypothesis was confirmed and all in all it is obvious from the foregoing evidence that the businesses localised in bordering regions are more internationalised than the firms localised in inner regions not having borders with neighbouring countries. The article is based on the survey results of the research project no. StG-21310034 entitled “Patterns of Business Internationalization in Visegrad Countries – In Search for Regional Specifics” conducted in the years 2013–2014 by five universities from Visegrad countries and coordinated by Cracow University of Economics.
Article
A new phenomenon, against the process approaches of internationalisation, born globals show that firms can be global short after their inception attracts most of the researchers' attention in the last two decades. The most denominators in born global research are probably the importance of the entrepreneur and managerial characteristics. Researches on born globals stress the role of managerial characteristics as influences on the export behaviour of the firm. Therefore, the objective of this study is to identify and analyse the common characteristics and behaviours of entrepreneurs and managers that affect the establishment of born global firms in Turkey. The study was designed to be qualitative in nature. It provides empirical qualitative data through case studies so that insights can be obtained directly from the entrepreneurs/managers. The samples consist of six born global firms from Ankara-Turkey. Obtained characteristics presented in a tree diagram, were classified through taxonomy. When the results of this study compared with the previous studies, there were both common and some different characteristics about entrepreneurs of born global firms of Turkey as an emerging economy in Asia. In this respect, we suppose that, the study contributed critically to the born global literature.
Article
Research related to firm export performance dates back to the early 1960s, ever since many studies have been conducted with mixed results. The three main goals of the present study were to analyze (1) the impact of the selected firm, management, and the export strategy-related variables on the export performance; (2) the possible variation in the results depending on the measure of export performance; and (3) the similarities and differences in the results depending on the type of SME – traditional exporters vs. born international companies. Based on a literature review, 14 hypotheses were developed to be tested. Consequently, the empirical part of the study is based on a survey conducted among Finnish SMEs in early 2002. The export performance was analyzed using six different types of performance measures. None of the 14 hypotheses were fully supported by all employed measures of performance. However, the export performance was positively impacted by firm size, product/service quality, international orientation, and market diversification along five measures. Additionally, the study indicated some similarities, but also some differences depending on the measure of export performance, type of the exporting SME, and the operationalizations used for the born international companies. Based on the results, management implications and proposals for future research are presented.
Article
Purpose – This study analyzes international new ventures (INVs) by means of the classification developed by Oviatt and McDougall (1994): global start-ups (GSUs) are compared with other types of INVs. Design/methodology/approach – The empirical data for the study were collected via a Web-based survey of Finnish ICT companies. Particular emphasis was placed on the operationalization of the key constructs as well as on the sample formation, in which both the number of international markets served and the coordination of international activities were taken into consideration. Findings – The findings of this study indicate that GSUs are particularly driven by the international growth orientation of the top management. They also seem to perform better than other types of INVs. Practical implications – From the managerial point of view, the findings of this study indicate that managers of INVs should be encouraged to internationalize their value chain as a whole, despite the risks. However, those managers making these decisions should also be aware of the capabilities needed for managing the global value networks they create. Originality/Value – This exploratory study reveals that studying INVs from a holistic perspective – including both inward and outward activities – produces interesting findings and opens new avenues for future research. This theme clearly deserves more attention. Our classification of INVs into smaller subgroups also proved to be fruitful, not least concerning GSUs.
Article
Full-text available
Purpose The purpose of this paper is to examine the phenomenon of the born global firm (BGF) in the Indian context. Specifically, the paper explores firm‐level characteristics (from the Indian IT industry) which act as initiating forces for firms which have made cross‐border acquisitions within five years of incorporation. Design/methodology/approach The paper uses inductive reasoning to derive a theoretical framework of analysis, using constructs from the resource‐based view and institutional theory. Findings The paper posits that firm resources, personal and network characteristics of its founders, age of the firm and institutional factors act as the initiating factors for a BGF. Originality/value This is the first study on the phenomenon of the BGF from India, which is an important emerging market, and has pioneering value, contributing to the growing literature on the topic.
Article
This study offers a contribution to our understanding of the role of a global mindset in the successful internationalization of small and medium-sized companies. The particular focus is on the drivers of the global mindset and the connection with performance. We created a framework and tested it, empirically, with a representative sample of small Finnish companies in the field of information and communications technology (ICT). The findings indicate that managerial experience and market characteristics are important drivers of the global mindset, which, in turn, is one of the key parameters of international performance. The paper includes our conclusions, a discussion of the limitations of the study and the managerial implications, and suggestions for future research.RésuméLa présente étude se propose de faire comprendre le rôle que joue la mentalité globale dans l'internationalisation heureuse des petites et moyennes entreprises. Nous nous appesantissons surtout sur les facteurs motivants de la mentalité et sur ses rapports avec la performance. Nous créons un cadre que nous testons, de façon empirique, à partir d'un échantillon représentatif de petites entreprises finnoises opérant dans le secteur des Technologies de l'information et de la communication (ICT). Les résultats indiquent que l'expérience en matière de gestion et les caractéristiques du marché sont des catalyseurs importants de la mentalité globale qui, à son tour, est l'un des paramètres clé de la performance internationale. L'étude dégage également nos conclusions, ses implications en matière de gestion, ses limites et propose des pistes de recherche futures.
Article
This article provides a reformulated definition of international entrepreneurship. Consistent with the new definition, a model is presented of how the speed of entrepreneurial internationalization is influenced by various forces. The model begins with an entrepreneurial opportunity and depicts the enabling forces of technology, the motivating forces of competition, the mediating perceptions of entrepreneurs, and the moderating forces of knowledge and networks that collectively determine the speed of internationalization.
Article
Full-text available
This paper examines the phenomenon of accelerated internationalization of firms from the Indian IT industry. It we examine the emergence of the Born Global firm in the Indian context with a specific focus on firms which made an acquisition within five years of incorporation. It specifically addresses the issue of initiating factors which contribute to the emergence of the Born Global Firm in the Indian context using constructs from the Resource based view (RBV) and institutional theory.
Article
Full-text available
International marketing research has usually built upon the supposition that small firms are less competitive than larger firms, primarily due to scarce resources. However, empirical investigations of the direct relation between firm size and export performance have yielded conflicting results. This paper presents the hypothesis that small firms develop an export strategy aimed at reducing their size disadvantages. Using a sample of 335 Norwegian industrial firms together with structural equations modeling, we identified a direct linkage between firm size and export performance, in which small firms are less successful than larger firms. We found that these small firms tend to follow a niche focus strategy and that this strategy is further linked to product quality and high attention to personal selling. Both product quality and personal selling as well as distribution efficiency render a positive impact on export performance. Accordingly, these small firms seem to have developed an export strategy that reduces their size disadvantages. This study demonstrates that an export strategy measurement instrument developed in the United States can be translated and used in another country with a dissimilar language and culture. Second, the study uses an analytic approach that makes it possible to examine both direct and indirect effects. Third, the investigation contributes new insight regarding how small firms develop export strategies aimed at reducing their size disadvantages.
Article
Executive Overview In this issue of AME, the article by Oviatt and McDougall, “Global Start-ups: Entrepreneurs on a Worldwide Stage,” paints a fascinating picture of the next millennium. Perhaps it will be an era filled with companies that will be global from their inception. In a world of rapidly transforming economies, instant communications, interconnected business alliances, disintermediation of supply chains, and ubiquitous technologies, the author's premise is not difficult to accept. However, most practitioners who read the article will struggle with the fundamental definition of “global” as put forth by the authors; therein lies the dilemma. We believe that many of the examples cited in the article are international, but not global. There is a distinction. This distinction raises profound questions as one examines the characteristics needed for truly global start-ups, as well as for other areas of management research.
Article
Entrepreneurial (including small-business) research is characterized by a large number of different research methodologies, each of which possesses advantages and disadvantages. Hence an entrepreneurial researcher must consider the trade-offs associated with each type of methodology. This paper describes these trade-offs and develops a set of guidelines that a researcher can use for selecting a specific type of methodology.
Article
This study examined if firm performance and the associated patterns of management varied for owner-started (OS), buyout (BO), and family firms (FF). For this we compared these firms' self-reported ROA, annual sales, business strengths, competitive strategies, and management practices. Not only did owner-started firms achieve higher profits than the family firms and buyouts, but their paths to profitability differed in important respects from those of the buyouts and family firms. Owners' mode of entry influenced firm sales as well Family firms' sales exceeded OSs' and BOs', and their management approaches to performance contrasted with those of the others. Further, our findings concurred with previous studies which suggested that variations in sales and profits were likely to be influenced by different management actions.
Article
The paper compares three European textile communities, Como (Italy), Leicester (UK) and Lyons (France), chosen on the basis of the large numbers of small firms operating within them and using data collected by the authors via a postal questionnaire and one-to-one interviews. Discarding the more traditional approach to small firms which sees them as individual and autonomous units, the paper applies the industrial district model to the three areas. Firms are therefore studied in their relation both to each other and to the whole community. Each area is found to possess a quite distinct industrial organization but their performance varies greatly. Our approach throws into clear relief the strength of an industrial district such as Como as well as the difficulties faced by an industrial community (as opposed to a district) such as Leicester. Poor local inter-firm relations go some way towards explaining these difficulties, as does the positioning of the entire community of firms vis-a-vis external agents, especially the large retail chains.
Article
Examines how entrepreneurs learn from the experience of conducting international business and how they “draw upon” that knowledge when “thinking globally” and enacting international strategies. The findings draw attention to the values, visions and key learning issues that are continually being reproduced as entrepreneurs respond to international opportunities, find partners and build cross-border networks. International entrepreneuring, it is argued, is about learning from different cross border exchanges and converting that experience into organisational practices that build strategic capability in international markets. Such a perspective also has important implications for the education and training of small business entrepreneurs and managers as they think about and enact their international strategies.