Networking and Familiness as Factors Stimulating the Early Internationalization of High-Tech Firms

Abstract

The problem of the role and importance of time in the process of firm's internationalization belongs to the mainstream of international business research, as is the problem of the key role of high-tech firms operating across borders. The main goal of the paper is to understand how selected factors determine early internationalization of high-tech firms in Poland as an emerging market. The theoretical framework of the article is built on international entrepreneurship literature, supported by the network perspective and family firm theory. Then, the article focuses on the high-tech firms that become international through export or any other entry mode in the first three years of their life. A survey was conducted on the sample of 263 firms operating in high-tech industries in Poland. The results of our empirical studies show that high-tech firms functioning in networks and clusters are more likely to start their international expansion early. Moreover, family high-tech firms are less likely to internationalize early than non-family firms.

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Inzinerine Ekonomika-Engineering Economics, 2023, 34(5), 554–567
Networking and Familiness as Factors Stimulating the Early Internationalization
of High-Tech Firms
Nelly Daszkiewicz1, Krzysztof Wach2
1Gdansk University of Technology, Department of Economics
Narutowicza 11/12, 80-233 Gdansk, Poland
E-mail: ndasz@zie.edu.pl
2Krakow University of Economics, Department of International Trade
Rakowicka 27, 31-510 Kraków, Poland
E-mail: wachk@uek.krakow.pl
https://doi.org/10.5755/j01.ee.34.5.33855
The problem of the role and importance of time in the process of firm’s internationalization belongs to the mainstream of
international business research, as is the problem of the key role of high-tech firms operating across borders. The main goal
of the paper is to understand how selected factors determine early internationalization of high-tech firms in Poland as an
emerging market. The theoretical framework of the article is built on international entrepreneurship literature, supported
by the network perspective and family firm theory. Then, the article focuses on the high-tech firms that become international
through export or any other entry mode in the first three years of their life. A survey was conducted on the sample of 263
firms operating in high-tech industries in Poland. The results of our empirical studies show that high-tech firms functioning
in networks and clusters are more likely to start their international expansion early. Moreover, family high-tech firms are
less likely to internationalize early than non-family firms.
Keywords: Early Internationalization; High-Tech Firms; Born Globals; Internationalization of Firm; International
Entrepreneurship; International Business; Familiness; Networks.
Introduction
New technology-based firms (NTBFs), particularly those
in high-tech industries, operate in a deep inter-relationship
amongst the processes of innovation, internationalization and
entrepreneurship (Onetti et al., 2012; Gawel, 2021; Ahi et al.,
2022; Glodowska et al., 2023; Zur & Walega, 2023).
Therefore, this article will deal with these three themes. The
first and main research theme will be the internationalization
of firms. Secondly, we will focus on family entrepreneurship
as one of the least explored areas in Polish international
business literature (Hadrys-Nowak, 2018). Thirdly, the article
will consider high-tech industries as highly innovative whose
inherent feature lies in innovations.
The main goal of our research was to identify the role of
networking and familiness as some key factors of the
internationalization of Polish high-tech firms, also in the
context of early internationalization. The key research field of
this article is the internationalization of high-tech firms in
Poland. The very first articles dealing with technological
entrepreneurship in Poland were published in 2010s
(Badzinska, 2016). Almost the same applies to the
internationalization of high-tech firms in Poland
(Daszkiewicz, 2019). In 1990–2014, few articles appeared
linking internationalization and technology among Polish
firms (Puslecki, Trapczynski, & Staszkow, 2016).
Although for some decades the international business
research literature studied the role of cooperation and
networks in the internationalization process (Johanson &
Mattson, 1987), researchers mostly operated from the
perspective of established economies and not that of late
comers to the global marketplace. In their qualitative studies
of 33 firms from Columbia and Peru, Gil-Barragan et al.
(2018) found that the weak domestic networking and poor
domestic institutional environment stimulate the accelerated
internationalization of local firms. Similarly, based on 11 case
studies from Columbia, Gonzalez-Perez et al. (2018) observe
that the ability to build networks stimulates the process of
internationalization of these firms. Usually, qualitative studies
appear before the stronger quantitative verification of
hypotheses. This article presents a quantitative study in hope
to answer the needs observed in emerging markets.
The international entrepreneurship literature still provides
few studies from emerging markets (Perenyi & Losoncz,
2018; Glodowska, 2019), including countries in Central and
Eastern Europe (Cui et al., 2018), Poland being one of the
largest countries in Central Europe.
Based on their bibliometric analysis of literature on
international business in Poland in leading Polish journals and
selected international journals, Puslecki, Trapczynski, and
Staszkow (2016) observe that there are few studies and
publications about the role of networking and cooperation in
the internationalization process of Polish firms. Moreover,
their classification does not even include the
internationalization of family firms, which motivated us to
focus our empirical investigations on familiness. We should
acknowledge that their bibliometric analysis reveals that over
a span of 25 years (1990–2014) just four articles appeared
regarding the role of technology and high-tech in the process
of internationalization of firms in Poland. While many editors

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of prominent journals in management, economics, and
business studies advise and encourage the replication studies
(Eden, 2002), there exists a diversity of scholarly perspectives
on this matter, which remains unresolved (Hensel, 2019).
The above-mentioned arguments make this article seek
answers to the following research question:
RQ: What are the relations between clusters, networks,
and family contacts and the internationalization process of
high-tech firms in Poland? Does the network approach
matter?
These relations remain unexplored in the emerging
markets, especially in Poland, which reveals a research gap in
the literature. Moreover, scholars notice an evident lack of
empirical investigations on emerging countries, including
Poland (Wach, Glodowska, & Maciejewski, 2018). This
article makes two contributions towards progressing and
updating the research on internationalization of high-tech
firms. Firstly, it is one of the first empirical studies on the
internationalization of firms from high technology industries
in Poland. Secondly, it contributes to the existing literature of
international entrepreneurship by testing the
internationalization of technology-based firms in a more
recent context in an emerging economy in Central and Eastern
Europe – Poland – which is a region so far avoided by studies
on the internationalization of high-tech firms.
Literature Review and Hypotheses Development
Theoretical Background
We based the theoretical framework of the article on the
literature review of international entrepreneurship literature
(Mainela, Puhakka, & Sipola, 2018; Heredia-Portillo &
Armas-Arevalos, 2023; Kljucnikov et al., 2020) and
supported it with the network perspective and family firm
theory (Marjanski & Sulkowski, 2018; Ingram & Krasnicka,
2023). Many researchers in diverse countries studied the
factors determining a firm’s early internationalization since
the emergence of born globals. Already in 1997, Madsen and
Servais identified four groups of internationalization factors
of born global firms, i.e. the entrepreneur, the firm, the
environment, and technology. The characteristics of the firm’s
founder, especially their specific features such as experience,
ambitions, and motivation for early and rapid interna-
tionalization, stimulate accelerated internatio-nalization. One
such characteristic is familiness, but there are two
contradictory streams in the literature, which treat a family
firm status either as a stimulant or barrier in this regard
(Hadrys-Nowak, 2018). What further impels early fast
internationalization is characteristic of such elements as
internationality of the offer, the board’s structure and
characteristics, strategic alliances, or network relations.
Networks usually play a crucial role in stimulating
internationalization, especially early internationalization.
However, an entrepreneur can explore and exploit potential
network relations with proper skills and attitudes (Gallego-
Roquelaure, 2020). What can can also impact interna-
tionalization are environment characteristics, both regarding
market and industry. Various researchers foreground the level
of internationalization, market/industry specialization, and
technology (high/low), in particular in the area of digital
transformation (Behandari et al., 2023; Corvello et al., 2022;
Glodowska et al., 2023; Sabatini et al., 2022).
From the resource-based perspective, Rialp et al. (2005)
indicate among the most important factors of the
internationalization of born global material and capital
resources, international capabilities (knowledge and
international orientation), strategic features (speed and range
of internationalization), and environmental factors (industry,
geographical location, existence of different networks). These
authors focus on firms’ intangible resources, namely
structural capital (technological capital + organizational
capital + relational capital) and human capital, which further
determine the strategies of early and rapid internatio-
nalization. Moreover, Rialp et al. highlight external
internationalization factors, such as industry (high-/low-tech,
production/services), geographical context, and the firm’s
functioning in the network.
Johnson (2004) conducted a qualitative and quantitative
study of US and UK small high-technology international start-
ups. The research confirmed the factors previously identified
in the literature. Furthermore, Johnson identified several new
factors of early internationalization, most importantly about
founders. An organization’s founders are to possess a global
vision that demonstrates their ability to identify unique
international opportunities. They have valuable international
contacts and are driven by the aspiration to become leaders in
the global market. Zuchella, Palamara, and Denicolai (2007)
focused on drivers of early internationalization when studying
a sample of 144 Italian SMEs, among which they emphasize
entrepreneurs’ previous experience, especially their
international experience, the niche positioning, and family
entrepreneurship. Wach and Glodowska (2021) observed
similar relations in a sample of 255 Polish firms.
In a similar vein, Cannone and Ughetto (2014) conducted
a comprehensive cross-country survey to examine the factors
that influence high-tech start-ups’ decision to engage in
internationalization from the early stages, and the extent to
which they exhibit born-global characteristics, the degree of
born-globalness, so to say. They proposed a theoretical
framework based on the model established by Oviatt and
McDougall (2005), which addresses the factors that impact
the rate at which entrepreneurial internationalization occurs.
Cannone and Ughetto (2014) developed a novel conceptual
framework to identify the primary factors that contribute to
firms’ early internationalization. In their proposed model, the
main drivers of the internationalization of a firm are the
following:
(i) technology, meaning the rapid pace of technical
advancements that compels technology-oriented firms to
pursue international markets at an earlier stage of their
development to mitigate risks of technological obsolescence
and imitation;
(ii) home country conditions, namely various factors
associated with prevailing home-country environment that
can serve as catalysts or motivators to engage in early
internationalization (as small domestic markets may propel
firms to internationalize early in their life);
(iii) the entrepreneur, meaning one’s main features
grouped into three categories: human capital (e.g. age, high
education level, proficiency in foreign languages),
international commitment, and experiential knowledge

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(Glodowska & Wach, 2021; Glodowska et al., 2019a;
Sarwoko & Nurfarida, 2021), international entrepreneurial
orientation by risk attitude, pro-activeness, motivation, and
innovation propensity;
(iv) network relationships, namely network size, density,
and strengths of ties; networks are a source of information
about foreign markets and help entrepreneurs create strategic
alliances or cooperation agreements;
(v) firm’s attributes, especially strategic emphasis and
positioning, the characteristics of products on offer, the
existence of a diverse range of experience within the
management team, and firm’s organizational flexibility.
This article will try to test some of the proposed factors
from this theoretical model by combining high-techs and
networks. Cannone and Ughetto (2014) showed that the
presence of a limited domestic market and the potential for
scalability of the product on offer positively influence the
likelihood of a start-up venturing into foreign markets from
the onset. Moreover, Cannone and Ughetto remark that the
specialized approach and network contacts established by
entrepreneurs play a crucial role in facilitating the early
internationalization and determining the extent of worldwide
expansion. The additional factors in this process are the
entrepreneur’s experiential expertise and international
commitment, the team’s diverse skills, and the firm’s
organizational flexibility. These factors significantly impact
the born global’s degree of born-globalness.
Prior Studies and Hypotheses Development
Knight and Cavusgil (2004) observed that the ability to
internationalize early and fast often results from firms’ ability
to sustain innovation and create new knowledge. This
observation explains why many scholars found born globals
mainly initially mostly among high-tech and high-tech-related
firms. Furthermore, Autio et al. (2000) remark that early
internationalization and greater knowledge intensity are
associated with faster international growth. Moreover, new
technology-based firms are the source of technological
innovations and they are characterized by a relatively higher
level of expenditure on R&D in comparison with firms from
traditional industries, which in consequence, determines their
competitive advantage (Zou et al., 2010). Many conducted
studies on the determinants of the early internationalization of
technology-oriented firms following the ‘discovery’ of born
globals.
Cooperation and Networks
Networking is one of the key factors stimulating
internationalization, and it is one of the main theoretical
approaches explaining the internationalization phenomena
(stages models, resource-based view, network perspective,
international entrepreneurship, strategic and management
perspective, integrated approach) (Wach, 2021; Maciejewski
at al., 2021). Recent empirical evidence from studies on
emerging economies by Gil-Barragan et al. (2018) and
Lekovic et al. (2020) prove that operating in domestic
networks stimulates firm’s early and fast internationalization.
Moreover, Gonzalez-Perez et al. (2018) observed that the
ability to build networks is essential for accelerating
internationalization. Much research supports the argument
that networks significantly impact internationalization
processes – their pace, pattern, market selection, and entry
mode. Network relations allow firms to access additional
relationships and established channels. For example,
Lindqvist (1988) found that the presence of strong customer
ties impacts the rate and manner in which small firms expand
into international markets and their selection of an entry
mode. Moreover, Coviello and Munro (1995) showed that
firms can achieve rapid internationalization by leveraging
network linkages and connecting with well-established
networks. Rialp et al. (2005) propose a theoretical model
linking networks and the early internationalization of various
firms, including technology-based startups. Cannone and
Ughetto (2014) suggest combining high-tech and networks in
empirical studies. The literature review and especially the
review of various empirical studies resulted in the following
hypotheses to be tested for high-tech firms from Poland:
H1a: High-tech firms cooperating in any informal and
formal networks are more likely to internationalize early
compared to non-family firms.
H1b: High-tech firms operating in local clusters are more
likely to internationalize early compared to non-family firms.
Familiness
Cano-Rubio et al. (2016) attempts to bridge the research
gap regarding the composition of familiness. In the family
firm literature, researchers use the term ‘familiness’
interchangeably with the term ‘family involvement’ and
‘family effect.’ We will apply it also in this article, and we
will understand familiness as a declaration that the business
under scrutiny is a family firm. During the last decade, family
business has been an increasingly important research area
worldwide (Ingram & Krasnicka, 2023). Nevertheless, there
is still a divergence in research findings about the distinct
ways in which family firms and non-family firms may
undergo the internationalization process (Wach et al., 2023b).
According to Kontinen and Ojala (2010), the participation of
family members in managerial roles inside family firms can
potentially lead to a sense of prudence during the
internationalization process. Therefore, we may argue that
family firms exhibit a higher propensity to pursue a
conventional trajectory of international expansion. Kontinen
and Ojala analyzed empirical data pertaining to the interna-
tionalization of family businesses (FBs) and discovered
compelling evidence supporting the notion that the
internationalization process of FBs is gradual, aligning with
the internationalization process outlined in the Uppsala
internationalization model. Furthermore, Kontinen and Ojala
note that family-owned businesses often opt for nations that
are geographically proximate and exhibit a preference for
indirect entry modes over direct ones. In turn, Graves and
Thomas (2006) claim that family businesses face unique
internationalization barriers. Moreover, familiness is to be
connected with social capital, thus also with the firm’s
external environment, which leads some to even use the term
‘open ecosystem of familiness’ (Cana-Rubio et al., 2016).
Thus, this article links cooperation and networks with
familiness as the extension of the former element. Family
involvement enables many contacts and social ties, which
consequently make cooperation and networking easier.

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Recently, the research on the internationalization of family
firms has intensified in Poland. Noteworthy, the countries of
Central and Eastern Europe are latecomers to international
business due to their historical heritage of centrally planned
economies and economic transformation. Thus, it is
interesting to show how the processes of internationalization
of family firms occurred in Poland, the largest economy in
Central Europe. Therefore, there is a visible research gap
(Wach et al., 2023). Nevertheless, various researchers
provided mixed evidence on how different factors foster or
hinder the internationalization of family firms (Daszkiewicz
& Wach, 2014; Hadrys-Nowak, 2018; Hanify et al., 2019). It
encouraged us to verify how familiness impacts not only
internationalization in general but, in particular, the early
internationalization of high-tech firms in Poland, as high-tech
industries remain unexplored. Furthermore, familiness
seldom combines with high-tech industries – reserved rather
for international giants – so we aimed to fill the research gap
by dealing with this issue. Thus, we decided to test the
following research hypothesis:
H2: Family firms from high-tech industries are less likely
to internationalize early compared to non-family firms.
High-Control Entry Modes
International business literature has studied entry modes
since the 1970s. Most authors mention three categories of
entry modes, namely (i) exporting modes, (ii) contractual
modes, and (ii) investment modes. In this context, Hollensen
(2017) uses a different terminology to indicate (i) export
modes based on externalization, (ii) intermediate modes, and
(iii) hierarchical modes based on internalization. A firm
strategically decides on the selection of a foreign entry mode.
According to Arregle et al. (2006), the level of resource
commitment to the foreign market, the risk faced by a firm in
the host country, and the extent of control exerted by a firm
over its abroad activities are all under the influence of
international market performance. Gabrielsson et al. (2008)
observed that born globals frequently employ a strategic
approach by utilizing several market entry approaches (a
combination of different entry modes), such as forming
partnerships, in order to successfully penetrate new markets.
Furthermore, born global firms frequently devise distinct
strategies to cater to diverse markets simultaneously. Hence,
there is no single solution or answer in the literature.
Generally, those who use hierarchical modes are mainly
global companies or multinational corporations, whereas we
studied high-tech firms of various sizes. We were interested
whether the high-tech industry provides any further insights
in this regard. Therefore, we decided to verify the following
hypothesis:
H3: Early internationalized high-tech firms are more
likely to use high control modes compared to non-family
firms.
Research Methodology
Research Design
We decided to apply the quantitative strategy based on an
in-field survey. As usual in the case of such studies, we
conducted a literature review, retrieved hypotheses, then
operationalized variables, and tested them using a dedicated
computer statistical software (Statistica). We used a survey
questionnaire consisting of the following six thematic areas: (i)
firm, (ii) advanced technology, (iii) R&D and innovation, (iv)
motives, entry modes, and scope of internationalization, (v)
internationalization patterns and strategies, (vi) respondent.
Based on the literature review, we decided to investigate
how selected factors determine the internationalization
process of high-tech firms in Poland, in particular the early
internationalization. During the empirical research phase, we
applied a simple research model for hypothesis testing. The
proposed model (Figure 1) assumes the impact of some key
factors on the early internationalization of high-tech firms in
Poland: (i) functioning in any formal or informal networks,
(ii) cooperation in clusters, (iii) familiness, and (iv) using high
control entry modes.
Figure 1. The Research Model for Empirical Hypotheses Testing
Source: own elaboration

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Variables
Early Internationalization
We used early internationalization as the dependent
variable. In the literature, there are two competitive
approaches to the problem of time in the process of firm
internationalization (Daszkiewicz, 2017). The first one – the
traditional or classical one – perceives internationalization as
a slow, sequential process (Johanson & Vahlne, 1977),
whereas the other one as fast or accelerated (Knight &
Cavusgil, 1996; Oviatt & McDougall, 2005). However, since
the 1990s, scholars have frequently criticized the traditional
approach, because an increasing number of firms expanded
onto foreign markets right from their conception – or very
soon after. Moreover, these firms, often small and technology-
oriented, choose rapid internationalization through any entry
mode, omitting some stages of traditional internationalization
(Knight & Cavusgil, 1996). Such firms are usually called born
globals (Rennie, 1993; Knight & Cavusgil, 1996; Madsen &
Servais, 1997; Cannone & Ughetto, 2014). However,
literature refers to born globals also as international new
ventures, born internationals, early internationalizing firms, or
globalizing internationals. Moreover, some researchers
analysing the phenomenon of early and fast interna
tionalization in high-tech industries use the following terms:
high-technology start-ups, new technology-based/ technology-
based firms, or high-tech new ventures (Jarosinski &
Mierzejewska, 2017; Maciejewski & Wach, 2019).
The concept of born global firms appeared 30 years ago
(Rennie, 1993) and even today, there exist many definitions
which lead to the lack of conceptualisation. Nonetheless,
scholars commonly define early internationalization as the
duration of time between a company’s establishment and the
initiation of worldwide sales. Specifically, scholars
categorize organizations that commence exporting or
adopting other entry modes during the initial three years as
early international firms (Knight et al., 2004). Moreover,
Zucchella et al. (2007) classify firms that started exporting
in three years as precocious, born globals, and early
international firms (EIFs). In this article, we also accepted
three years as the borderline separating the traditional
internationalization from an early one.
Independent Variables (Including High-Control Entry
Modes)
Finally, we used also 11 independent and control
variables, of which four described networking, cooperation,
familiness, and control, further four – R&D activities, and
the last three – the age and foreign ownership of the
investigated firms (Wach, 2017). Table 1 describes how we
constructed the variables. We will follow the Table with a
more detailed description.
Hollensen (2017) categorised foreign entry modes into
three distinct categories based on the criteria related to the
level of control: (i) high control, (ii) intermediate, and (iii)
low control modes. High control modes encompass foreign
direct investment (FDI) in the form of wholly owned
subsidiaries (WOS) and/or direct selling to significant
clients, such as original equipment manufacturers (OEMs).
These entry modes provide an equivalent level of control
over activity in foreign markets. Intermediate modes of
business collaboration encompass strategic alliances (SA)
and/or joint ventures (JV). We may classify the aforemen-
tioned entry modes as intermediate control modes,
positioned between high-control modes and low-control
modes. In these modes, partners typically engage in resource
sharing, technology sharing, profit sharing, and job sharing.
Commonly, local partners contribute market-specific
knowledge in these arrangements. Low-control modes
encompass indirect export and direct export strategies.
Nevertheless, the degree of control is minimal when it comes
to indirect export, which occurs when a parent business
utilizes independent entities situated either in the parent
firm’s nation or a third country. When engaging in direct
export, the parent company directly sells its products to an
agent, distributor, or importer situated in the foreign market.
This approach offers a greater level of control compared to
indirect export. However, direct export still belongs to the
low-control modes (Daszkiewicz, 2017).
Table 1
Used Variables in Empirical Models and Statistical Calculations
Abbreviation
Full name
Measures
Scale
Dependent variables
Int_Speed
Internationalization speed
When the internationalization occurred as the
number of years from the inception
continuous variable
Early_Int
Early internationalization
0/1 The time of the internationalization up to
three years from the inception
dummy variable
Independent and control variables
Networks
Functioning in any informal or formal
networks
0/1
dummy variable
Clusters
Functioning in any domestic clusters
0/1
dummy variable
Familiness
Declaring to be a family firm
0/1
dummy variable
High_Control
High-control entry mode
0/1 Having any hierarchical entry modes (a
foreign branch, a joint venture, or a wholly-
owned subsidiary)
dummy variable
Age
Age of the firm
Number of years.
dummy variable
F_Owner
Foreign ownership
Foreign ownership of assents in percentage.
dummy variable
F_Owner_2
Foreign ownership 2
0/1 Any foreign ownership
dummy variable
Source: own elaboration

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Sampling and the Characteristics of the Sample
Sample Selection
We conducted the survey on the internationalization of
high-tech firms in Poland with the use of CATI (Computer-
Assisted Telephone Interviewing). We employed the
random sampling technique in the selection process, while
adhering to the following parameters (Daszkiewicz, 2019):
1. The firm engages in international operations,
specifically at least involving export activities.
2. The firm is classified under one of the designated
categories of economic activity, specifically categorized as
either ‘high-tech’ or ‘medium-high-tech’ according to the
NACE/PKD (Polish Classification of Activities).
3. The firm must fulfil at least one of the three criteria
outlined below:
– acquires patents or enters into licensing agreements in
high-tech fields,
– hires personnel with significant scientific and technical
expertise,
– engages in industrial research or development
activities and prepares the outcomes of such research or work
for implementation in the economy.
We based the selection of the target population on the
aforementioned parameters. Initially, from the database of
high-tech companies prepared by the Polish Agency for
Enterprise Development (PARP), we drew 4075 firms drawn
but reaching some of them proved impossible as they did not
operate at the time. Through the survey, we collected 263 fully
filled questionnaires (the return rate was 8.2 %), which were
relevant for further statistical analysis. If it turned out that
there was a conflict or lack of a valid date for further analysis,
we removed the case using computer software.
The Characteristics of the Research Sample
The research sample covered businesses of all sizes:
micro, small, medium-sized and large enterprises. In total,
SMEs accounted for 82 % (216 firms) of the examined firms,
whereas large enterprises accounted for 18 % (47 firms).
Among the investigated firms, 31 % (80 firms) were ‘old’
firms, i.e. established before 1989. Thus, these firms started
their activities before the transformation of the Polish
economy from a centrally planned to a market economy. The
largest number of enterprises – 59 % (156 firms) – were
established during the transformation period, that is in the
years 1989–2004. That period was characterized by a fast
development of entrepreneurship and consequently the
creation of many new, especially small and medium-sized
enterprises. Only 9 % (24 firms) were established in the
period 2005–2009, i.e. after the accession of Poland to the
European Union. Only 1 % (three firms) – the youngest ones
– were set up after 2010. We conducted the survey in all 16
regions of Poland.
The survey included all high-tech and medium-high-
tech industries. The majority of firms surveyed are engaged
in the manufacturing of computers and electronic and optical
products, accounting for 13 % of all firms examined. Within
the medium high tech (MHT) sector, the machinery and
equipment industry – not classified elsewhere – had the
highest number of operating enterprises. The two sectors
with the highest percentage of production were electrical
equipment (PKD 27) at 17 % and chemicals and chemical
products (PKD 20) at 14 %. Based on the SITC product
classification (Standard International Trade Classification),
a significant proportion of enterprises were engaged in the
manufacturing of electrical machines (34 %), non-electrical
machines (27 %), electronics and telecommunications (17 %),
and chemicals (14 %).
Internationalization Speed
In the given sample, we observed that 45 % of the firms
can be classified as early internationalized, indicating that
these firms initiated their first expansion into foreign markets
less than three years following their foundation. In the case of
55 % of the studied firms, we saw that the initial expansion
occurred more than three years after the establishment, which
we classified as a traditional internationalization path. The
histogram of the duration of the international expansion of the
surveyed firms shows that the distribution of this variable was
extremely right-skewed. This means that the vast majority of
firms started their international expansion relatively early.
The arithmetic mean of the moment of the firm’s first
expansion was 9.69 years and the standard deviation was
14.87 years. The standard deviation was significantly higher
than the average. However, due to the extreme right-skewness
of the distribution of the variable under study, we were unable
to assess the significance of the above statistics. Hence, we
focused on non-classical statistics. A median equal to 4.0
informed us that half of the surveyed firms first expanded in a
maximum of four years. The lower quartile was 1.0 and it
shows that 25 % of the surveyed firms started international
expansion no longer than one year after they started operating,
while the upper quartile of 12.0 indicates that 75 % of firms
started international expansion no longer than 12 years after
they started operating.
Empirical Findings
Correlations for the Internationalization Speed
We applied a correlation analysis to the only two
continuous variables, i.e. early internationalization and the
age of the surveyed firms. The analysis proved that there was
a statistically significant correlation between the age of the
surveyed enterprises and internationalization speed.
Younger companies internationalized faster (χ2 = 49.416, df
= 3, p = 0.000, Spearman’s ρ = -0.412, Cramer’s V contingency
coefficient = 0.437).
We also proved that there was a statistically significant
relationship between the share of foreign ownership in the
firm’s assets and its internationalization speed (χ2 = 17.797,
df = 3, p = 0.000, Spearman’s ρ = 0.233, Cramér’s V
contingency coefficient = 0.262). This is a moderate-
intensity relationship. Thus, the higher the share of foreign
ownership in assets, the faster the internationalization.
There was a weak statistical relationship between the
early internationalization and the selection of foreign entry
modes (χ2 =9.594, df =4, p =0.048, Cramer’s V contingency
coefficient =0.192).
This suggests that hypothesis H3 is true and early
internationalized firms are indeed more inclined to employ high

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control modes. However, there were no unequivocal results as
the descriptive statistics suggest something else (Table 2), and
the statistical relationship was weak. In other words, the matter
requires further in-depth empirical verification.
Table 4 presents the results of the descriptive analysis
conducted on our data set with respect to the variables under
consideration. A substantial proportion of the sample (45%)
comprised early internationalized firms. Table 2
Descriptive Analysis of the Research Sample for Early Internationalization
Items
Early internationalization (time to export)
≤ 3 years
> 3 years
Firms total (259*)
45.0%
55.0%
any networks, including:
formal international network
informal international network
no networks
54.6%
38.2%
16.4%
45.4%
45.4%
29.1%
16.3%
54.6%
family firm
non-family firm
14.7%
24.3%
using high-control entry modes
using medium-control entry modes
using low-control entry modes
combination of various modes
3.1%
27.8%
45.0%
24.1%
3.9%
32.4%
55.0%
8.7%
Note: * we could not provide the expansion year for the oldest firms in the sample.
Source: own elaboration based on the survey (n = 263).
Logistic Regression for Early Internationalization
The next stage of the analysis was logistic regression for
the early internationalization of high-tech firms. Because of
the dichotomous nature of the time variable of international
expansion, which assumes the analysis of the states ‘≤ 3
years’ and ‘> 3 years,’ we decided that logistic regression
would be the most appropriate statistical analytical
technique. We defined a set of exogenous variables which
together significantly impact a firm’s early international
expansion, namely: (i) functioning in any informal or formal
networks, (ii) a firm’s familiness, and additionally (iii)
cooperating in local clusters. Table 3 presents the results of
the models’ estimates.
The empirical statistic chi-squared χ2 = 7.047 gives the
value of level p = 0.029, and thus, at the significance level α
= 0.05, we found that together, selected determinants
significantly impact the time of first international expansion
of the surveyed firms. The assessment of the parameter b2
with the variable ‘functioning in formal or informal
network’ equal to (-) 0.315 means that firm cooperation in
international networks was accompanied by the reduction of
time of the firm’s first international expansion. The level p
= 0.076 determined for the Student’s t-test indicates that
with the upper limit of the significance level α = 0.1, the
variable ‘functioning in formal or informal network’
statistically significantly affected the chances of reducing
the time of the firm’s first international expansion, which
means that we confirmed hypothesis H1a. The assessment
of the b3 parameter with the ‘familiness’ variable equal to
(+) 0.544 means that the familiness of the firms favoured the
extension of the time of the firm’s first international
expansion. The level p = 0.039 determined for Student’s t-
test indicated that with the upper limit of significance level
α = 0.1, the ‘familiness’ variable statistically significantly
impacted the chances of extending the time of the firm’s first
international expansion, which means that we confirmed
hypothesis H2.
Moreover, we built the second model with three
variables by adding ‘cooperating in local clusters.’ It
improved the general estimations of the model (for
familiness and networking) and confirmed hypothesis H1b
that cooperation in local clusters affects the chances of
reducing the time of a firm’s first international expansion.
Table 4 below presents the classification of the surveyed
firms according to the chance of finding in both analysed
subgroups the time of the first international expansion. On
this basis, we could assess the average validity of the
estimated model in the classification of the surveyed firms
to both subgroup (≤ 3 years,> 3 years). We saw that among
firms whose real expansion period was > 3 years, the correct
classification by the model was 90.8%. The result was much
worse for firms with a real expansion period of ≤ 3 years as
the model’s classifications were accurate in this subset of
only 15.4 %. For model 2, which included three variables
(with added clusters), the calculations were respectively
82.4 % and 28.9 %.
Table 3
Results of Estimation of Parameters of the Logistic Models of the Time of International Expansion
Model 1. Two variables: networking and familiness
n=259
Total loss: 174.793 Chi-squared (2) = 7.047 p = 0.029
The modelled probability that the duration of expansion is ≥3 years
Constant
Functioning in int’l networks
Familiness
Assessment
-0.958
-0.315
0.544
Standard error.
0.329
0.177
0.263
t(256)
-2.907
-1.781
2.071

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Model 1. Two variables: networking and familiness
n=259
Total loss: 174.793 Chi-squared (2) = 7.047 p = 0.029
The modelled probability that the duration of expansion is ≥3 years
Constant
Functioning in int’l networks
Familiness
P
0.004
0.076
0.039
Wald’s chi-square
8.452
3.172
4.287
P
0.004
0.0749
0.038
Model 2. Three variables: networking, clusters and familiness
n=259
Total loss: 177.065 Chi-squared (4) = 8.787 p = 0.037
The modelled probability that the duration of expansion is ≥ 3 years
Constant
Clusters
Networks
Familiness
Assessment
0.097
-0.362
-0.476
0.600
Source: own elaboration based on the survey (n = 259)
Table 4
Case Classification of the Logistic Models of the Time of International Expansion
Estimating
model
Observations
Estimated
>3 years
Estimated
≤3 years
Percentage of correctly indicated firms
Model 1
>3 years
129
13
90.85
≤3 years
99
18
15.38
Classification
chances: 1.804 %, correct: 56.76%
Model 2
>3 years
117
25
82.39
≤3 years
86
35
28.92
Classification
chances 1.905%, correct: 57.79%
Source: own elaboration based on the survey (n = 259).
Discussion
The above empirical findings foreground previously
unnoticed nuances about this this region of Europe in the
literature. Although researchers studied the interna-
tionalization of technology-based global firms from
different advanced economies for two decades (Choquette
et al., 2017; Onetti et al., 2012), this topic remained
undiscussed regarding some emerging markets like Poland.
Although scholars might have negative associations
regarding research replication in business studies seems
(Hensel, 2019), we believe it to be relevant and in some
conditions even crucial. Polish realities are different from
those of advanced economies, so it was worth checking how
internationalization processes described in the international
literature occur among Polish high-tech firms.
Our quantitatively verified results that international
networking and cluster cooperation stimulate early interna-
tionalization are consistent with the literature, so the
replication of research was proper, and the conditions in
Poland appear to be the same in this regard. Recent
qualitative research on emerging economies suggested such
a solution (Gil-Barragan et al., 2018; Gonzalez-Perez et al.,
2018), which indeed agrees with the well-established results
from advanced economies (Coviello & Munro, 1995).
The majority of researchers accept that familiness
hinders and sometimes even inhibits firms’ interna-
tionalization process (Kontinen & Ojala, 2010; Graves &
Thomas, 2006; Daszkiewicz & Wach 2014). Nevertheless,
this requires further exploration, as existing empirical
evidence is contradictory (Hadrys-Nowak, 2018). For
example, family firms listed on stock exchanges are usually
more internationalized. On the whole, our results are not
only consistent with the existing literature but are one of the
first ones that combine familiness and internationalized
high-tech firms in Poland.
In our research sample (n = 263), the majority of the
early internationalized high-tech firms from Poland used
low-control exporting forms (45 %) and a combination of
various entry modes, exporting, cooperating, and investing
(24.1 %). These descriptive statistics align with the findings
of Gabrielsson et al. (2008), which indicate that born globals
frequently employ a variety of market entry modes in their
operations. Nevertheless, the weak statistical significance of
our results is consistent with Hollensen’s (2017) view that
born globals are better prepared to use hierarchical high-
control entry modes. As the research results do not provide
clarity in this regard, the issue requires further investigation.
This article contributes to the technological entrepre-
neurship literature (Badzinska, 2016; Jafari-Sadeghi et al.,
2021) and extends our knowledge on interna-tionalization of
high-tech firms in Poland (Daszkiewicz, 2019; Wach,
2016), especially in the context of the recent technological
revolution and Industry 4.0 (Rymarczyk, 2020; Rymarczyk,
2021), the entrepreneurial economy (Sieja & Wach, 2019),
dynamic development of international e-commerce
(Grochal-Brejak & Szymura-Tuyc, 2018), and digital
marketing (Bartosik-Purgat, 2019; Bednarz et al., 2023).
Moreover, this article develops the international
entrepreneurship literature from the perspective of Central
Europe, which in itself constitutes an added value (Perenyi &
Losoncz, 2018; Puslecki, Trapczynski, & Staszków, 2016) as
our study replicated empirical research from other regions
(Eden, 2002; Hensel, 2019) as there is an evident lack of

Nelly Daszkiewicz, Krzysztof Wach. Networking and Familiness as Factors Stimulating the Early …
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empirical investigations of emerging countries, including
Poland (Wach, Glodowska, & Maciejewski, 2018). Our
results are in line with the study by Johnson (2004) who –
based on a qualitative and quantitative study of US and UK
small high-technology international start-ups – confirmed the
factors previously identified in the literature.
Conclusions
Summary of the Empirical Results
Studies on the determinants of the early and fast
internationalization of high-tech firms appeared in the 1990s.
Despite different conclusions concerning their international
behaviour, much research to date supports the thesis that
internationalization patterns of high-tech firms differ from
those of low-tech firms. We based our empirical results on a
sample of 263 firms operating in high-tech and medium-high-
tech industries in Poland. We verified all hypotheses through
statistical calculations and accepted all but one (Table 6). The
key results of our empirical studies show that firms
functioning in networks and clusters are more likely to start
their international expansion early compared to non-family
firms. Moreover, family firms are less likely to interna-
tionalize earlier compared to non-family firms.
Table 6
The Results of the Hypotheses Verification
No.
Hypotheses
Verification status
Method of verification
H1a
High-tech firms co-operating in any informal and formal
networks are more likely to internationalize early compared to
non-family firms.
Confirmed
Logistic regression (model 1 and
model 2)
H1b
High-tech firms operating in local clusters are more likely to
internationalize early compared to non-family firms.
Confirmed
Logistic regression (model 2)
H2
Family firms from high-tech industries are less likely to
internationalize early compared to non-family firms.
Confirmed
Logistic regression (model 1 and
model 2)
H3
Early internationalized high-tech firms are more likely to use
high control modes compared to non-family firms.
lack of unequivocal
results
Chi-squared independence test;
Cramér’s V contingency
coefficient
Source: own elaboration
Contribution
The initial results presented in this article are
undoubtedly preliminary and thus require further exploration.
Nonetheless, the obtained and discussed empirical results
allowed us to gain insight into the reality of Polish high-tech
firms, which we find beneficial, as this industry appears to
be flourishing in Poland at present. As empirical research
replication in social sciences is not only possible but even
very welcome (Eden, 2002; Hensel, 2019), it helps to see
how operate other differing ecosystems in various corners of
the globe. Furthermore, there is little empirical evidence on
the internationalization of high-tech firms from emerging
markets, especially from Central and Eastern Europe,
including Poland.
Implications
Managers of high-tech firms in Poland should seek
cooperation in local clusters, as it stimulates the
internationalization process. In Poland, there are some
advanced technology clusters such as the Three City Silicon
Valley (Gdansk, Gdynia, Sopot), Lifescience Krakow, the
medical cluster MedSilesia in Gliwice, and the Aviation
Valley in Rzeszow. The capital city of Warsaw is the market
leader in the high-tech field among all the Polish regions,
including headquarters of Bioton and Celon Pharma, the
largest biotechnology firms in Poland. Although member-
ships in various business organizations are not so popular in
Poland – probably due to the recent communist past – our
empirical results suggest that entrepreneurs and
professionals should seek to operate within formal networks,
especially with international networks, which can stimulate
internationalization processes. Exporting consortia are rather
unpopular in Poland, but taking international experiences
into account they seem to facilitate firms’
internationalization. Because family high-tech firms are less
likely to internationalize early than non-family firms
operating in advanced technology industries, family
managers’ activities should be more proactive in seeking
new international opportunities (Wach et al., 2023).
Research Limitations
One of the main limitations of this research concerns the
unrepresentative research sample, which implies that we
cannot generalize the results to all high-tech firms in Poland.
Importantly, the findings and conclusions drawn from this
study are specific to the analysed high-tech firm (n = 263)
and may not be directly applicable to other similar
organizations.
Despite this limitation, the sample size of the 263 firms
should be relatively large within the Polish context. It is a
substantial dataset that allows for meaningful analysis and
insights into the specific high-tech firms under investigation.
This wide-ranging inclusion of firms from different
industries enhances the diversity and breadth of the research
sample, ensuring a comprehensive topic exploration.
Nevertheless, we should exercise caution when
generalizing the findings beyond the specific high-tech firm and
Polish context. The unique characteristics and circumstances of
each organization and country may introduce variations that
could influence the results differently. Therefore, we recommend
further research with more diverse and representative samples
to strengthen the finding’s generalizability and gain a more
comprehensive understanding of the implications of digital
transformation for high-tech firms in Poland and potentially
in other similar contexts.

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Furthermore, we conducted the research within a
specific timeframe and might not have captured the dynamic
nature of digital transformation, as technology and business
practices continue to evolve rapidly. Future studies should
consider longitudinal approaches to track the changes over
time and capture the ongoing impact of digital
transformation on high-tech firms in a more comprehensive
manner.
Future Research Directions
When examining the early internationalization factors of
high-tech firms, future studies should consider a narrower
group of firms, especially those operating within ultra-high
technologies. Moreover, a review of the current research on
the internationalization of high-tech firms – and especially
determinants of a firm’s early and fast internationalization –
indicates several main directions, such as research into the
relationship between internationalization, innovation, and
networking or research on the relationship between
technological capacity and internationalization strategies, as
well as the role of international entrepreneurial orientation in
the internationalization of high-tech firms. Furthermore, our
methodology requires development and improvement, for
example through additional research tools, e.g. qualitative
research based on interviews with managers, or more
sophisticated quantitative tools. Furthermore, this topic
exhibits high potential for a good comparative study, e.g.
analysis of determinants of the early internationalization of
high-tech firms in Poland and other countries, especially in
emerging markets like the Central and Eastern European
countries.
Acknowledgement
In case of Nelly Daszkiewicz, this publication was co-financed from the subsidy granted to the Faculty of Management and
Economics, Gdansk University of Technology (Poland). In case of Krzysztof Wach, the publication presents the result of
the project no. PRW/WPOT/2023/0045 financed from the subsidy granted to Krakow University of Economics (Poland).
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Authors’ Biographies
Nelly Daszkiewicz – full professor at Gdańsk University of Technology, Faculty of Management and Economics
(Poland). Since 2019, she is the head of the Department of Economics (until September 2021 the Department of Economic
Sciences). She is a member of scientific committees of national and international scientific conferences and a reviewer of
many journals. She was the promoter of three doctoral dissertations and a reviewer in numerous doctoral proceedings. She
is the author and co-author of several books and numerous scientific articles and has participated in several national and
international research projects. Main research areas of prof. Nelly Daszkiewicz include international entrepreneurship, in
particular internationalization of firms and small and medium-sized enterprises.
Krzysztof Wach – full professor at Krakow University of Economics (Poland). Professor of social sciences (2020),
habilitated doctor of economics (2013), PhD in management (2006), Head of the Department of International Trade (since
2016), Director of the Centre for Strategic and International Entrepreneurship (since 2014), Member of the Committee of
Economic Science Polish Academy of Sciences (PAN, since 2020), member of. the Committee of Economic Science Polish
Academy of Skills (PAU, since 2022), member of the Committee of Organization and Management Polish Academy of
Sciences (PAN) – branch in Kraków (since 2023). Expert in international entrepreneurship, author of several books and over
200 articles, editor-in-chief of the scientific quarterly Entrepreneurial Business and Economics Review (ESCI WoS, Scopus),
member of editorial boards of several scientific journals, including European Journal of International Management (SSCI
WoS, Scopus), Central European Management Journal (ESCI WoS, Scopus). Visiting professor at various foreign
universities, including ones in the USA, the UK, Spain, Croatia, China, Taiwan, Vietnam, Austria, Slovakia, and Ukraine.
The article has been reviewed.
Received in April 2023; accepted in December 2023.
This article is an Open Access article distributed under the terms and conditions of the Creative
Commons Attribution 4.0 (CC BY 4.0) License http://creativecommons.org/licenses/by/4.0