Initial entry speed and international performance of INVs

2019 ◽  
Vol 14 (1) ◽  
pp. 297-323 ◽  
Author(s):  
Sheng Huang ◽  
Guangyu Ye ◽  
Suqin Shen
Keyword(s):  
New Ventures ◽  
Individual Learning ◽  
International New Ventures ◽  
Learning Orientation ◽  
Content Type ◽  
International Performance ◽  
Upper Echelons Theory ◽  
National Institutions ◽  
Entry Speed ◽  
Initial Entry

Purpose In the literature concerning international new ventures (INVs), there has been a tension between the learning advantages of newness and absorptive capacity perspectives for explaining the performance influence of initial entry speed. To address this tension, this paper, through integrating both the motivation and ability to acquire foreign knowledge, proposes a theoretical model about the nonlinear relationship between INVs’ initial entry speed and international performance. Drawing upon upper echelons theory and the institution-based view, this study aims to extend the literature by developing two boundary conditions for this relationship: the moderating role of executives’ individual learning orientation and sub-national institutions. Design/methodology/approach The authors used the latent moderated structural equations approach specific to Mplus to test the hypotheses with data on 322 Chinese INVs. Findings The findings indicate that INVs’ international performance will increase initially and then decrease, as they accelerate initial entry speed (an inverted U-shaped relationship), and that INVs managed by executives with a higher learning orientation and located in better sub-national institutional environments achieve greater international growth gains from moderate initial entry speed. Originality/value This study mainly makes contributions to the INV literature by integrating the motivation and ability to acquire foreign knowledge to offer full understanding of the effect of initial entry speed on international performance, and by elaborating on the moderating effects of executives’ individual learning orientation and sub-national institutions on this relationship.

scholarly journals International new ventures’ international performance: a matter of network entrepreneurial orientation and network management activities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maria Ripollés ◽  
Andreu Blesa
Keyword(s):  
Network Management ◽  
Knowledge Sharing ◽  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
New Ventures ◽  
International New Ventures ◽  
Potential Conflict ◽  
Content Type ◽  
International Performance ◽  
Positive Effects

Purpose The purpose of this paper is to demostrate that commitment to developing knowledge sharing, coordination, adaptation and resolving potential conflict results in idiosyncratic relational assets for firms, which increases the benefits that international new ventures (INVs) can obtain from their networking activity. Design/methodology/approach To test the theoretical model, a survey was conducted among a sample of INVs. The data obtained were examined with structural equation modelling using the maximum likelihood estimation procedure in linear structural relations software. Findings The results showed positive effects of network entrepreneurial orientation (EO) on knowledge sharing, coordination, adaptation and resolving potential conflict, but only network coordination showed a positive effect on international performance. Research limitations/implications The study introduces and extends EO to the network level and shows that it contributes to INVs’ international performance through its influence on the development of coordination activities among networked firms. Practical implications The results provide guidance for building INVs’ networks. Entrepreneurs will find orientations about which partners could be more valuable to them. Originality/value Little research has addressed the study of network management activities to create a network structure. This paper reveals how firms’ volition and commitment to networking helps us to understand, in a fine-grained manner, how INVs gain benefits from their social networks. Additionally, EO at the network level is also studied, and arguments are proposed showing its relationships with the aforementioned relational activities based on the fact that entrepreneurial-oriented partners are supposed to be more active in networking.

How learning orientation drives the international performance of INVs: the roles of entrepreneurial bricolage and degree of internationalization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zhenkuo Ding ◽  
Guangyu Ye ◽  
Sheng Huang ◽  
Man Hu
Keyword(s):  
New Ventures ◽  
Equation Modeling ◽  
Learning Orientation ◽  
Content Type ◽  
Mainland Chinese ◽  
International Performance ◽  
Mediating Role ◽  
Entrepreneurial Bricolage ◽  
The Relationship ◽  
Degree Of Internationalization

Purpose Despite extensive research into the effect of organizational learning processes on firm performance, it remains unclear how and when learning orientation influences the international performance of international new ventures (INVs). Accordingly, the purpose of this paper is to investigate how learning orientation drives the international performance of INVs. Design/methodology/approach Structural equation modeling is used to test the research model with questionnaire data from mainland Chinese INVs. Findings Results show that: learning orientation positively influences entrepreneurial bricolage; entrepreneurial bricolage positively influences the international performance of INVs; entrepreneurial bricolage plays a mediating role between learning orientation and international performance; degree of internationalization (DOI) weakens the effect of entrepreneurial bricolage on international performance. Originality/value This study makes a useful supplement to the INV literature by revealing that entrepreneurial bricolage plays a mediating role in the relationship between learning orientation and the international performance of INVs. It also contributes to the entrepreneurial bricolage literature by introducing entrepreneurial bricolage into the empirical research of INVs and identifying the learning orientation antecedents and performance consequences of entrepreneurial bricolage. In addition, this paper enriches the understanding of the boundary conditions for how entrepreneurial bricolage affects international performance showing that DOI has a negative moderating effect on the relationship between entrepreneurial bricolage and international performance.

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 Disentangling the effects of post-entry speed of internationalisation on export performance of INVs

2018 ◽  
Vol 36 (7) ◽  
pp. 780-806 ◽  
Author(s):  
Arash Sadeghi ◽  
Elizabeth L Rose ◽  
Sylvie Chetty
Keyword(s):  
Export Performance ◽  
New Ventures ◽  
Performance Outcomes ◽  
Organisational Learning ◽  
Three Dimensions ◽  
International New Ventures ◽  
Different Dimensions ◽  
Entry Speed ◽  
Post Entry ◽  
Intensity Spread

This article aims to explore the under-researched topic of post-entry speed of internationalisation (PSI) in the context of international new ventures (INVs). We unbundle PSI and examine its relationship with both financial and non-financial export performance, considering three related, but conceptually distinct, dimensions of PSI: internationalisation intensity, spread and geographical diversity. Building on organisational learning theory, we highlight different mechanisms that contribute to post-entry performance outcomes among INVs. Our findings from a sample of 112 INVs in New Zealand provide evidence that the three dimensions of PSI are distinct and that they have different impacts on financial and non-financial export performance. This article contributes to the limited, yet growing body of literature on PSI by providing a deeper understanding of PSI and its constituent dimensions. In addition, this study offers new theoretical insights into how and why different dimensions of post-entry speed of internationalisation can contribute to stronger export performance.

scholarly journals Revisiting entrepreneurial capabilities and export market orientation: a multi-scale investigation in an emerging economy

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anisur R. Faroque ◽  
Md Imtiaz Mostafiz ◽  
Mohammad Omar Faruq ◽  
Mohammad Fuad Bin Bashar
Keyword(s):  
Market Orientation ◽  
Customer Orientation ◽  
New Ventures ◽  
Emerging Economy ◽  
Export Market ◽  
Superior Performance ◽  
Content Type ◽  
International Performance ◽  
Multi Scale ◽  
Strategic Orientations

PurposeThe study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale entrepreneurial capabilities have been adopted to provide more profound insights into the literature on early internationalisation. Since little is known about the antecedents of export market orientation, the performance outcome of this is ambiguous. This study aims to enhance knowledge in this pressing research area.Design/methodology/approachThe sample of this study consists of data (354 firms) from INVs operating in the apparel industry of an emerging economy, namely, Bangladesh. Structural equation modelling has been used to investigate the hypothesised relationships.FindingsFor the Deshpandé and Farley (1999) scale, the effect of general entrepreneurial capability on intelligence dissemination and responsiveness is positively significant. Similarly, the effects of international entrepreneurial capability on customer orientation, intelligence generation, dissemination and responsiveness are positively significant. However, general entrepreneurial capability has non-significant effects on customer orientation and intelligence generation. The results also showed that export market orientation positively mediates the relationship between international entrepreneurial capability and firm performance. For the Morris and Paul (1987) scale, the hypothesised relationships between capabilities and market orientation are positively significant and, therefore, support the mediating relationships for both general entrepreneurial capability and international entrepreneurial capability.Originality/valueMerely having capabilities without acknowledging the firm's strategic orientations is not sufficient to secure superior performance. The authors urge entrepreneurs to capitalise on their entrepreneurial capabilities to leverage organisation-wide export-market-oriented behaviour to achieve superior international performance in emerging economies.

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.

Marketing activity of international new ventures – application of the EMICO framework

2019 ◽  
Vol 34 (4) ◽  
pp. 779-791 ◽  
Author(s):  
Izabela Kowalik ◽  
Lidia Danik
Keyword(s):  
Business Processes ◽  
New Ventures ◽  
International New Ventures ◽  
Minor Importance ◽  
Marketing Activity ◽  
Structured Interviews ◽  
Content Type ◽  
Entrepreneurial Marketing ◽  
Qualitative Data Analysis Software ◽  
Eastern European Countries

Purpose One of the approaches to study entrepreneurial marketing (EM) is the EMICO framework. The extant studies have not yet explored the application of this framework by international new ventures (INVs). To address this research gap, four Polish INVs from medium-tech sector have been studied to check whether this tool can be applied to investigate the companies from Central and Eastern European Countries and identify the hierarchy of elements in the EMICO framework. Design/methodology/approach Using semi-structured interviews and the card game method, the understanding and importance of the EM concept elements by the Polish entrepreneurs have been explored. The collected text has been analyzed using qualitative data analysis software. Findings The studied INVs in their international marketing activity attributed most importance to understanding and responsiveness toward customers, networking, innovation introductions based on gathering of information and on the constant communication with clients. Most of the EMICO framework dimensions were confirmed; however, the concepts of “exploiting markets” and “integration of business processes” had minor importance for marketing. Research limitations/implications Research findings are relevant mainly for the B2B companies. Originality/value The paper recommends a modified list of EMICO elements for use in future studies concerning the small- and medium-sized enterprise internationalization.

Paradoxes of psychic distance and market entry by software INVs

2015 ◽  
Vol 27 (1) ◽  
pp. 34-59 ◽  
Author(s):  
Paresha Sinha ◽  
Mingyang (Ana) Wang ◽  
Joanna Scott-Kennel ◽  
Jenny Gibb
Keyword(s):  
Market Entry ◽  
Cultural Distance ◽  
New Ventures ◽  
Open Economies ◽  
Secondary Data ◽  
International New Ventures ◽  
Psychic Distance ◽  
Small Open Economies ◽  
Content Type ◽  
Market Expansion

Purpose – This paper aims to examine the role of psychic distance during the process of international market entry by software international new ventures (INVs) from small, open economies. Specifically, we investigate how home market and global industry contexts influence market-entry strategies, and how psychic distance influences initial then subsequent market-entry choice decisions. Design/methodology/approach – Using Atlas.ti7 software, this paper adopts a qualitative, multi-case analysis of ten software INVs based in New Zealand. Thematic coding of interview and secondary data revealed three core processes: pre-entry considerations, market selection criteria and post-entry evaluation, across the stages of initial and subsequent market entry. Findings – In the context of the global software industry, the key driver of proactive market entry by INVs from small, open economies is market size rather than psychic distance. During the process of market expansion, firms encounter the psychic distance paradox (PDP). A second paradox arises when, despite experiential learning, managerial perceptions of psychic distance increase, making entry into more distant markets less, rather than more, likely and reactive, rather than proactive. Originality/value – This paper addresses contextual differences in software versus more traditional sectors, and the influence of psychic distance on market entry rather than outcomes. Specifically, extending our understanding of the PDP, we find perceptual psychic and cultural distance ignored as criteria for initial market-entry decisions, and initial positive attitudes toward risk-taking become less apparent during subsequent entries.

The role of formal industry clusters in the internationalization of new ventures

2014 ◽  
Vol 26 (5) ◽  
pp. 449-470 ◽  
Author(s):  
Ana Colovic ◽  
Olivier Lamotte
Keyword(s):  
Design Methodology ◽  
New Ventures ◽  
Global Markets ◽  
International New Ventures ◽  
Internationalization Process ◽  
Structured Interviews ◽  
Cluster Management ◽  
Intermediary Organization ◽  
Content Type

Purpose – The purpose of this study is to investigate the internationalization of international new ventures (INVs). Specifically, this research explores the ways in which a formal cluster can facilitate the internationalization process of these firms. Design/methodology/approach – The authors studied how four INVs benefitted from the actions of two clusters in France – Systematic and Mov’eo – as they internationalized. They conducted semi-structured interviews with the CEOs and other representatives of the INVs and with the members of the cluster management teams. Findings – The findings indicate that clusters can facilitate the internationalization of INVs by providing resources, networking opportunities and legitimacy to help them reach global markets and by increasing the speed of internationalization. Originality/value – By analyzing the specific role that a formal cluster plays in the internationalization of INVs, this research contributes to the literature examining the link between location and INV internationalization. The authors argue that the cluster’s role can be considered as that of an intermediary organization helping INVs to expand globally.

scholarly journals Have we made it? Investigating value-creating strategies in early internationalizing ventures

2016 ◽  
Vol 26 (5) ◽  
pp. 517-536 ◽  
Author(s):  
Romeo V. Turcan ◽  
Anita Juho
Keyword(s):  
International Entrepreneurship ◽  
New Ventures ◽  
Dynamic Capability ◽  
Future Research ◽  
International New Ventures ◽  
Organizational Survival ◽  
Content Type ◽  
Early Internationalization ◽  
Start Up ◽  
Survival And Growth

Purpose The extant research on early internationalizing ventures focuses primarily on these ventures’ start-up phase or their initial internationalization. Scarce attention is paid to how these ventures grow, if at all, beyond their start-up phase or initial internationalization phase. This paper aims to explore how international new ventures transition from the internationalizing phase to the phase of being international, and whether they actually made it to that phase. Understanding whether and how these ventures reach their “made-it” point would contribute to our understanding of how early internationalization affects a venture’s survival and growth. In this, the authors draw on the dynamic capability theory of the firm. Design/methodology/approach Given the scarcity of theoretical understanding and empirical evidence in this substantive area of research, the authors adopted a multiple case study methodology for the purpose of theory building. Following an intensity sampling strategy, they purposefully selected information-rich, but not extreme two-case companies. The authors initially collected unobtrusive data in the form of running records and mass-media news reports from the inception of the case companies. They then conducted in-depth interviews with key decision makers of the case companies, namely, their co-founders and CEOs. Critical incident technique guidelines for data analysis were employed. Findings Grounded in data, the following constructs emerged related to value creation: strategic experimentation, gestalt tensions and legitimacy lies. Entrepreneurs experiment with and reconfigure their venture at several levels: goal (vision), decision (strategic) and behavioral (tactical) levels of the organizational gestalt to reach a threshold level of practiced activity. Entrepreneurs’ strategic experimentation efforts are fueled by tensions that exist at these three levels of the organizational gestalt. During this experimentation process, entrepreneurs may tell legitimacy lies to legitimate their ventures in the eyes of their stakeholders. Research limitations/implications Given the instrument the authors used to explore the issues and concerns identified above, the results are limited in scope. However, a number of questions and conjectures are put forward to guide future research in this currently under-researched area of international entrepreneurship. The authors have also suggested using the concept of turning point in future research to advance the understanding of the dynamic capability view of international new ventures. Practical implications Understanding whether and how international new ventures reach their made-it points would contribute to the understanding of how early internationalization affects international new ventures’ organizational survival and growth. Originality/value The authors have put forward the concept of the made-it point to aid international entrepreneurship researchers to investigate the continued growth, evolutionary patterns and the organizational survival of international new ventures.

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