Social-cognitive antecedents of new venture internationalization

2019 ◽  
Vol 14 (3) ◽  
pp. 462-479 ◽  
Author(s):  
Aleksandra Wasowska
Keyword(s):  
Self Efficacy ◽  
Social Cognitive ◽  
New Ventures ◽  
Foreign Market Entry ◽  
New Venture ◽  
International New Ventures ◽  
Actual Behavior ◽  
Positive Orientation ◽  
Content Type ◽  
New Venture Internationalization

Purpose The purpose of this paper is to investigate the social-cognitive antecedents of an entrepreneur’s internationalization intent and a firm’s behavior. Building on the insights of social-cognitive psychology, the author develops a conceptual model linking an entrepreneur’s positive orientation, self-efficacy beliefs, internationalization intent and actual behavior of the firm. Design/methodology/approach The author tests this model with a sample of 310 Polish firms (including 241 domestic and 69 international new ventures), drawing on data collected first in 2006 and then in 2007. Findings The author finds that self-efficacy mediates between positive orientation and internationalization intent, and that an entrepreneur’s internationalization intent predicts a firm’s behavior (i.e. foreign market entry). Moreover, firm age moderates the relationship between an entrepreneur’s positive orientation and internationalization propensity among new ventures. Research limitations/implications Overall, the findings demonstrate that social-cognitive theory is useful in predicting new venture internationalization. Practical implications Based on the findings, the author recommends that managerial education in international management combines the development of “formal” skills and cross-cultural competencies with experiential and vicarious learning. Originality/value The study combines insights from psychology and international business, thus responding to numerous calls for a more interdisciplinary and cognition-oriented focus on the international behavior of firms.

Enhancing the understanding of international new ventures: a service-oriented perspective

2017 ◽  
Vol 40 (5) ◽  
pp. 494-516 ◽  
Author(s):  
Sven M. Laudien ◽  
Birgit Daxböck
Keyword(s):  
Market Entry ◽  
New Ventures ◽  
New Venture ◽  
International New Ventures ◽  
Service Orientation ◽  
Entry Modes ◽  
Content Type ◽  
New Venture Internationalization ◽  
Holistic Understanding ◽  
Service Oriented

Purpose This paper aims to challenge 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 use 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.

International new ventures: rapid internationalization across different industry contexts

2014 ◽  
Vol 26 (5) ◽  
pp. 390-405 ◽  
Author(s):  
Svante Andersson ◽  
Natasha Evers ◽  
Olli Kuivalainen
Keyword(s):  
Conceptual Framework ◽  
New Ventures ◽  
New Venture ◽  
International New Ventures ◽  
Special Issue ◽  
Content Type ◽  
New Venture Internationalization ◽  
Entry Strategy ◽  
Geographical Scope

Purpose – The purpose of this article is to, first, offer insights into the relationship between industry idiosyncrasies and international new ventures (INVs), and then present a research conceptual framework that identifies the role of industry factors in new venture internationalization processes and strategies. Second, the authors introduce the content of this special issue. Design/methodology/approach – This conceptual article builds on extant studies on INVs operating in different industrial contexts. Particular attention is given to the role of industry influences in the processes of new venture internationalization, in terms of speed, geographical scope and entry strategy. Such factors are discussed to formulate a conceptual framework as a basis for further research. Findings – The conceptual framework identifies key industry factors as well as emergent factors that influence the new venture internationalization process, in terms of speed, geographical scope and entry strategy. Such key influencing factors are competition and structure, industry life cycle, industry concentration, knowledge intensity, local cluster internationalization and global industry integration. Emergent factors are identified as new business models, technology and industry network dynamics. Research limitations/implications – This article is conceptual in nature, and thus empirical research is recommended in diverse contexts. Practical implications – Further analysis of industry factors is a valid research avenue for understanding INVs. Originality/value – This special issue offers new insights into how industry factors influence INVs’ internationalization processes in terms of speed, scope and entry strategy.

Internalization theory, entrepreneurship and international new ventures

2014 ◽  
Vol 22 (3) ◽  
pp. 246-269 ◽  
Author(s):  
Alain Verbeke ◽  
M. Amin Zargarzadeh ◽  
Oleksiy Osiyevskyy
Keyword(s):  
Cross Sections ◽  
New Ventures ◽  
Early Years ◽  
New Venture ◽  
International New Ventures ◽  
Internalization Theory ◽  
Content Type ◽  
Individual Level ◽  
Empirical Level ◽  
The Individual

Purpose – The aim of the article is to establish robust linkages between internalization theory and the empirical phenomenon of international new ventures (INVs). Here, the focus is on firm-specific advantages (FSAs) critical to early new venture internationalization. Design/methodology/approach – On the conceptual level, we explain how the INV literature can easily be accommodated using an internalization theory lens, and we formulate hypotheses to that effect. On the empirical level, we use the Kauffman Firm Survey (KFS) dataset, which includes a panel of 4,928 US-based new businesses founded in 2004, tracked over their early years of operations. We use logistic regressions building upon pooled cross-sections, and including lagged dependent variables. Findings – INV-type foreign expansion is a special case of international growth, easily and credibly predicted by internalization. No new theory beyond internalization theory is needed to explain this phenomenon. Originality/value – The early stages of the Uppsala model, in terms of requisite resources accumulation and recombination, may have been undertaken at the individual level, by founding entrepreneurs, in the pre-stage of the new venture, and are “invisible” when focusing on organizational experience built up in the new venture. Here, particular founding entrepreneurs’ characteristics function as FSAs.

scholarly journals Exploring the Role of Industry Structure in New Venture Internationalization

2007 ◽  
Vol 31 (4) ◽  
pp. 517-542 ◽  
Author(s):  
Stephanie A. Fernhaber ◽  
Patricia P. McDougall ◽  
Benjamin M. Oviatt
Keyword(s):  
International Business ◽  
New Ventures ◽  
Theoretical Framework ◽  
Industry Structure ◽  
New Venture ◽  
International New Ventures ◽  
Industrial Economics ◽  
New Venture Internationalization

While we have gained considerable knowledge since the late 1980s regarding the phenomena of international new ventures, less is known about the influence of industry structure on these ventures. In the present paper, we draw on literature from industrial economics, international business and entrepreneurship to identify industry structure variables that fit within the theoretical framework of international new ventures. We then offer propositions as to how the identified industry structure variables individually and jointly influence the likelihood of new venture internationalization.

Role of experience and knowledge in early internationalisation of Indian new ventures

2017 ◽  
Vol 23 (6) ◽  
pp. 850-865 ◽  
Author(s):  
Pratik Arte
Keyword(s):  
New Ventures ◽  
Technological Knowledge ◽  
New Venture ◽  
International New Ventures ◽  
Content Type ◽  
Knowledge Resources ◽  
International Growth ◽  
Knowledge Based ◽  
Early Internationalisation

Purpose The purpose of this paper is to investigate the role played by knowledge and experience of the entrepreneurs in early internationalisation of small- and medium-sized Indian new ventures. Using the theory of international new ventures (INV) and knowledge-based view (KBV); the conceptual framework of this study develops three propositions. First, it has been suggested that experience of the entrepreneurs motivates them to internationalise. Second, experience of the entrepreneurs increases their market and technological knowledge. Finally, it has been suggested that without market and technological knowledge, new ventures find it difficult to expand beyond national borders. Design/methodology/approach This study employs a comparative case analysis research design to investigate the propositions. The key constructs are drawn from prior empirical research and the relationships are tested using qualitative analysis. Findings Key findings of this study suggest that along with experience and knowledge, entrepreneurs’ education background is positively associated with new venture internationalisation. It was found that importance of knowledge resources varies across nature of business and industry in which INVs operate. Research limitations/implications Findings of this study contribute to advancing the literature on INV and KBV. The findings provide a framework to entrepreneurs to help them improve their decision-making logic and increase the speed of international growth. Originality/value Very few studies have investigated the internationalisation of new ventures from India. The knowledge is limited on the ways in which entrepreneurs acquire experience and assimilate knowledge in internationalising their operations.

scholarly journals An ethnographic study of new venture and new sector legitimation

2016 ◽  
Vol 11 (1) ◽  
pp. 72-88 ◽  
Author(s):  
Romeo V. Turcan ◽  
Norman M. Fraser
Keyword(s):  
Process Model ◽  
New Ventures ◽  
Political Legitimacy ◽  
Emerging Economy ◽  
Ethnographic Study ◽  
New Venture ◽  
International New Ventures ◽  
Content Type ◽  
Policy Objectives ◽  
New Industry

Purpose – The purpose of this paper is to explore the process of legitimation of international new ventures (INVs) from an emerging economy and the effect such ventures have on the process of creation and legitimation of a new industry in that economy. Design/methodology/approach – It is a longitudinal ethnographic case study. Following an inductive theory building approach, data were collected over an 11-year period via in-depth interviews, participant observations and unobtrusive data. Findings – Data reveal three different contexts in which legitimation takes place: legitimation of the new industry and of the new venture domestically and internationally. A new venture drives the process of industry legitimation by achieving legitimacy threshold first nationally at meso and micro levels as well as internationally. The challenge therefore for such a venture is to establish legitimacy in the absence of any precedents at the organization, industry or international levels. Unless at least one new venture achieves legitimacy threshold in a new industry there is no possibility for that industry to become institutionalized. Research limitations/implications – The authors advocate for further research at the intersection between legitimation, international entrepreneurship and emerging markets in order to further advance the emergent theory. Practical implications – The data suggest that in order for an INV to achieve cognitive legitimacy and socio-political legitimacy in an emerging industry located in an emerging economy, and successfully internationalize, it shall design a robust business model targeting both internal and external stakeholders; engage in persuasive argumentation invoking familiar cues and scripts; engage in political negotiations promoting and defending incentive and operating mechanisms; and overcome the country-of-origin effect by pursuing technology legitimation strategy. Social implications – Governments and NGOs may wish to see new industries emerge but they lack the means and mandate to establish and lead them themselves, instead rely on enabling actions, such as investment in capacity building. However, building capacity for an as-yet non-existent industry in an emerging economy may prove to be counter-productive, driving a brain drain of qualified workers who are forced to migrate to find suitable work. The work leads the authors to speculate about whether there may be a role for investment in programs of industry legitimacy building in pursuit of public policy objectives. Originality/value – The study puts forward a process model of new industry legitimation. The model theorizes the process of change from an initial condition in which an industry does not exist to a final condition in which it is institutionalized. The model addresses the case where the initial catalyst is the formation of an INV that is the seed for the birth of the industry. Since both the new venture and the new industry lack cognitive and socio-political legitimacies, the model theorizes temporal emergence of these at organizational and industry levels, leading ultimately to institutionalization.

Examining the Creative Self-Efficacy, Goal Interdependence, and Satisfaction of New Venture Teams in the Board Game Industry

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
R. Gabrielle Swab ◽  
Aviel Cogan ◽  
Tobias Pret ◽  
David R. Marshall
Keyword(s):  
Self Efficacy ◽  
Social Cognitive ◽  
New Venture ◽  
Board Game ◽  
Goal Structures ◽  
Team Members ◽  
Social Interdependence ◽  
Goal Interdependence ◽  
Game Industry ◽  
Creative Self

Abstract This study theoretically and empirically examines the important role that goal structures play in new venture teams. Specifically, we examine how creative self-efficacy affects the satisfaction of team members through cooperative and competitive goal interdependence. Relying on social cognitive and social interdependence theories, we contend that new venture teams’ creative self-efficacy leads to higher team satisfaction because it promotes the perception of cooperative goal structures among team members. We test our theory on new venture teams in the independent board game industry. Results generally support our hypotheses and we discuss the implications for entrepreneurship research and practice.

scholarly journals International new ventures market expansion through collaborative entry modes

2018 ◽  
Vol 35 (6) ◽  
pp. 890-913 ◽  
Author(s):  
Pushyarag N. Puthusserry ◽  
Zaheer Khan ◽  
Peter Rodgers
Keyword(s):  
Small And Medium Enterprises ◽  
New Ventures ◽  
Entry Mode ◽  
Foreign Market ◽  
International New Ventures ◽  
Structured Interviews ◽  
Entry Modes ◽  
Content Type ◽  
Market Expansion ◽  
The Uk

PurposeThe purpose of this paper is to examine the role that different collaborative entry modes play in how international new ventures (INVs) expand into international markets.Design/methodology/approachThe paper’s arguments are based on the INVs and social network literatures. In order to investigate the entry modes adopted by British and Indian small and medium information and communication technology (ICT) firms into each other’s markets, the paper outlines the results of qualitative semi-structured interviews with the key decision makers of ten British and ten Indian ICT firms.FindingsThe findings contribute to the relatively under-researched area of how INVs enter foreign markets through collaborative entry mode. The findings suggest that INVs utilize both equity and non-equity modes of collaboration to expand their international operations. The findings also indicate that financial and non-financial resources always limit the market expansion and internationalization of such companies. Against this background, the INVs rely on building collaboration as one of the safest methods for foreign market expansion and successful internationalization. The collaborative entry mode is enhanced by entrepreneurs’ prior experience, social ties and knowledge of the foreign market.Research limitations/implicationsSet against the backdrop of an ever-increasing trend of internationalization of small and medium enterprises (SMEs), the paper offers important implications for understanding the conditions and factors behind the choice of collaborative and non-collaborative entry modes by INVs in particular and SMEs more broadly.Originality/valueThe paper is one of the few studies that have examined the role of collaborative entry modes choice adopted by INVs from two of the largest economies – the UK and India.

scholarly journals Media and sustainable apparel buying intention

2017 ◽  
Vol 21 (4) ◽  
pp. 483-498 ◽  
Author(s):  
Orpha de Lenne ◽  
Laura Vandenbosch
Keyword(s):  
Social Media ◽  
Young Adults ◽  
Self Efficacy ◽  
Efficacy Beliefs ◽  
Survey Study ◽  
Media Content ◽  
Actual Behavior ◽  
Cross Sectional ◽  
Convenience Sample ◽  
Content Type

Purpose Using the theory of planned behavior, the purpose of this paper is to examine the relationships between different types of media and the intention to buy sustainable apparel and test whether attitudes, social norms, and self-efficacy beliefs may explain these relationships. Design/methodology/approach A cross-sectional survey study was conducted among 681 young adults (18-26 years old). Findings Exposure to social media content of sustainable organizations, eco-activists, and sustainable apparel brands, and social media content of fashion bloggers and fast fashion brands predicted respondents’ attitudes, descriptive and subjective norms, and self-efficacy beliefs regarding buying sustainable apparel. In turn, attitudes, descriptive norms, and self-efficacy beliefs predicted the intention to buy sustainable apparel. Fashion magazines predicted the intention through self-efficacy. Specialized magazines did not predict the intention to buy sustainable apparel. Research limitations/implications Results should be generalized with caution as the current study relied on a convenience sample of young adults. The cross-sectional study design limits the ability to draw conclusions regarding causality. Actual behavior was not addressed and needs to be included in further research. Practical implications The present study hints at the importance of social media to affect young consumers’ intentions to buy sustainable apparel. Sustainable apparel brands should consider attracting more young social media users to their social media pages. Originality/value This study is one of the first to examine the potential of different media to promote sustainable apparel buying intention.

Early stage network engagement strategies in the network capability development of new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Helen McGrath ◽  
Thomas O'Toole
Keyword(s):  
Social Network ◽  
Business Strategy ◽  
Early Stage ◽  
New Ventures ◽  
New Venture ◽  
Capability Development ◽  
Content Type ◽  
Study Approach ◽  
Engagement Strategies ◽  
Network Capability

Purpose The purpose of this paper is to identify the early stage network engagement strategies that new ventures use to gain traction in interaction in the development of network capability. Design/methodology/approach Using 24 new ventures in the micro-brewing industry in Ireland, Belgium and the USA as an empirical base, the authors use an inductive case study approach owing to the exploratory nature of the research aim and the lack of prior literature in the area. Findings The findings suggest five early stage network engagement process strategies in network capability development: business-to-business network prospecting; co-branding/co-promoting activities; from maker-mindset to adapting; social media platforming; and recognition and activation of network role. Research limitations/implications The findings are limited to the micro-brewery sector at one point in time, although in multiple country contexts. Analyzing other sectors and taking a temporal view of strategizing, analyzing the sector at another time point, would show how dynamics in engagement change as the actors acquire new experiences from interaction. Practical implications The potential to gain from network resources and the paucity of these resources in new ventures makes early stage engagement strategizing for network capability development an attractive business strategy for new firms. All firms are born within a social network that has economic importance. Identifying the five early stage network engagement strategies can mitigate the challenge for the new venture in moving from the initial social network to collaborating within wider business networks to gain access to resources, technology and customers. Originality/value Strategizing in new venture contexts is a relatively new stream of research for the industrial marketing and purchasing group. This paper adds to the growing body of literature that places interaction, relationships and networks at the heart of strategy making and provides important insights for new ventures, which may lead to earlier and greater success for the firms. The authors respond to calls for increased research addressing capability development in a new venture context and for research to take a more interactive perspective on new venture processes.

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