Knowledge creation dynamics within the international new venture

2015 ◽  
Vol 27 (2) ◽  
pp. 182-213 ◽  
Author(s):  
Sascha Fuerst ◽  
Peter Zettinig
Keyword(s):  
Real Time ◽  
Knowledge Creation ◽  
International Market ◽  
Process Research ◽  
New Venture ◽  
Internationalization Process ◽  
International New Venture ◽  
Process Data ◽  
Market Knowledge ◽  
Content Type

Purpose – This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of how INVs make use of external sources for the acquisition of international market knowledge is not well-understood. Design/methodology/approach – To uncover the dynamics of the knowledge creation process, the authors applied event-driven process research by following the internationalization process of four INVs in real time. More specifically, they adopted qualitative diary research combined with periodic follow-up interviews as the main data collection method. A visual mapping strategy was used for the analysis of the process data. Findings – The analysis shows that different pathways of knowledge acquisition through congenital learning, searching, vicarious learning and grafting interact with each other. Grafting and experiential learning alongside the partner lead to the acquisition of internationalization knowledge in particular. Knowledge sources for international market knowledge are proactively created by the entrepreneurs. The wider effectual stakeholder network constitutes an important source for international market knowledge. Research limitations/implications – The authors followed the early internationalization process of the case firm in real time over a 10-month period. This provides a limited window of observation. Future research might extend the observation period to examine further the evolutionary nature of the different learning types throughout the growth of the INV. The case firms operate in Internet-enabled businesses and are all located in the same country and city (i.e. Colombia and the city of Medellin). Future studies might focus on firms operating in different industries and geographical areas. Practical implications – Congenital technological knowledge is a prerequisite for internationalization. The entrepreneur, however, does not need to rely on congenital international market knowledge. Such knowledge can be developed through network partners. Foreign business and institutional knowledge can be obtained vicariously, also from professional advisors. Internationalization knowledge, however, needs to be developed in close interaction with an international cooperation partner, where a strong relationship commitment prevails. Originality/value – The authors use effectuation theory combined with process research methods to gain insights into the dynamics of knowledge creation within the INV. Thereby, they are able to shed light on the dynamics of the process that is difficult to capture through cross-sectional research designs. Research on the internationalization process of young ventures in the context of Latin America is scarce. Therefore, the paper contributes new knowledge about the development of these firms in that particular region.

Identifying international market opportunities: the case of Italian companies in Egypt

2014 ◽  
Vol 21 (4) ◽  
pp. 665-674 ◽  
Author(s):  
Rosa Caiazza
Keyword(s):  
Cultural Difference ◽  
Design Methodology ◽  
International Market ◽  
Internationalization Process ◽  
Content Type ◽  
Mediterranean Countries ◽  
Southern Mediterranean ◽  
Market Opportunities ◽  
Structured Questionnaire

Purpose – The purpose of this paper is to investigate the differences and relations between Italy and Egypt and to identify main risks and opportunities for Italian firms that aim to operate in Egypt. Design/methodology/approach – The paper presents a qualitative analysis realized through some semi-structured questionnaire and a case study. Findings – High cultural difference, legal uncertainty and administrative instability are main problems in internationalization process of Italian firms in Egypt. Despite these problems, Italian firms still invest in Egypt because of economic opportunities and possible interactions. Originality/value – While interest towards Southern Mediterranean countries is increasing, there is little written on this topic. This article aims to fill the gap in literature on internationalization in emerging markets.

scholarly journals Local horizontal network membership for accelerated global market reach

2019 ◽  
Vol 36 (1) ◽  
pp. 6-30 ◽  
Author(s):  
Paul Ryan ◽  
Natasha Evers ◽  
Adele Smith ◽  
Svante Andersson
Keyword(s):  
Secondary Data ◽  
International Market ◽  
Foreign Market ◽  
Global Market ◽  
Born Global ◽  
Market Knowledge ◽  
Content Type ◽  
The Rich ◽  
Horizontal Networks ◽  
Horizontal Network

Purpose The purpose of this paper is to explain how some born global firms can leverage the rich social capital in their local (home country) horizontal network for accelerated international market entry and growth. Horizontal networks warrant separate attention from their vertical counterparts, which, along with those focussed on external international contexts, dominate most network studies in the realm of born global research. Design/methodology/approach The study utilises a multi-level qualitative approach in the study of a multi-firm population of animators in Ireland that, due to the small domestic market for their product, needed to pursue global customers from inception. The case study domain was purposely selected as a critical exemplar of a local horizontal network operating in a highly globalised industry. The authors collected data through in-depth interviews with 16 company founders. This primary interview data were complemented by interviews with staff at the apposite industry association and triangulated with secondary data on the local and global industry conditions, members’ international successes and awards. Findings The results demonstrate how active membership of a local horizontal network can be leveraged for the acquisition of international market knowledge and customers for born global ventures. This arises from the sharing of collective market knowledge and communal global customer information within the network to mutual benefit. Originality/value Although limited by the specific conditions in this highly globalised, non-competitive industry context, this study is unique in that it finds that cooperative interpersonal and inter-firm relationships embedded in a local horizontal social network, and mediated in part by an institutional support actor, emerge as important levers for a born global’s accelerated acquisition of foreign market knowledge and of global customers.

Accumulated knowledge and innovation as antecedents of reputation in new ventures

2016 ◽  
Vol 23 (2) ◽  
pp. 428-452 ◽  
Author(s):  
Esther Hormiga ◽  
Desiderio Juan García-Almeida
Keyword(s):  
Knowledge Creation ◽  
Structural Equation ◽  
Core Competencies ◽  
New Ventures ◽  
Early Years ◽  
New Venture ◽  
High Tech ◽  
Content Type ◽  
Knowledge Based ◽  
Stock Of Knowledge

Purpose – The purpose of this paper is to analyse the effect of an entrepreneur’s accumulated knowledge and firm’s innovation on the development of reputation in the early years of a new venture from a knowledge-based approach. Design/methodology/approach – The study proposes a model that is tested with a sample of 130 firms in non-high-tech industries from the Canary Islands (Spain) using structural equation modelling. Data were collected through a survey. Findings – This study provide interesting insights on the effect of reputation on the performance in new ventures, along with antecedents of the new firm’s reputation from the knowledge-based view. The findings confirm that innovation and prior knowledge play important roles in the development of reputation in the early years of a new venture and that reputation has a significant effect on the performance of a new firm. The entrepreneur’s stock of knowledge does not reveal itself as a significant determinant of innovation and knowledge creation in this context. Research limitations/implications – The entrepreneur’s accumulated knowledge should be seen as a valuable existing asset for a new venture, and innovation and knowledge creation can be used to develop core competencies in orientating the strategic direction of a new venture. Both elements become fundamental despite addressing non-high-tech industries. Practical implications – Entrepreneurs should be aware of the key role that the creation and the stock of knowledge play in the first years of company life and this research shows how significant this relationship with the initial reputation and performance of new venture in non-high-technology industries is. Originality/value – There is a relative scarcity of studies on reputation-building strategies in new entrepreneurial ventures, and the present study adopts an original knowledge-based perspective to shed new light on the analysis of reputation.

scholarly journals Brazilian craft breweries and internationalization in the born global perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fabricio Stocker ◽  
Gustavo Abib ◽  
Ronaldo de Oliveira Santos Jhunior ◽  
Helio Arthur Reis Irigaray
Keyword(s):  
International Market ◽  
Global Perspective ◽  
Internationalization Process ◽  
Structured Interviews ◽  
Content Type ◽  
Early Entry ◽  
Research Findings ◽  
Multiple Case ◽  
Dominant Theory

PurposeThis paper aims to analyze how the internationalization process of Brazilian microbreweries takes place, especially in factors of propensity to internationalization, competition and survival in the national and international market.Design/methodology/approachThe authors adopted qualitative approach research, using a multiple case study strategy, analyzing seven Brazilian craft breweries. The authors developed this study through documentary research, semi-structured interviews and nonparticipant observation.FindingsThe research findings made it possible to characterize the internationalization process motivated by the background and international experience of entrepreneurs that adopted different strategies for expansion in the international market. The authors noticed that the networks developed in production partnerships, festivals and international missions represent an increase in the ease of internationalization and helps to reduce the risk perception.Research limitations/implicationsThe contributions refer to the conjecture that the born global's evolution related to the high competitiveness of the market is influenced by the international background of the founders and by the influence of the international network, overcoming institutional and market challenges in emerging countries, assuming risks associated with rapid and early entry into the international arena.Practical implicationsThe paper is potentially useful for managerial practice and policymakers by providing insights into the characteristics of entrepreneurs and companies considering their propensity to internationalize, presenting how entrepreneurs and managers can seek resources and develop their skills and capacities to manage such companies and processes of internationalization.Originality/valueThe research is presented as a complementary study to the limited number of studies examining born globals from emerging markets, also challenging the arguments of the dominant theory regarding gradual and nonlinear internationalization.

scholarly journals Intellectual structure of international new venture research

2019 ◽  
Vol 27 (4) ◽  
pp. 285-316 ◽  
Author(s):  
Félix Rodríguez-Ruiz ◽  
Paloma Almodóvar ◽  
Quyen T.K. Nguyen
Keyword(s):  
New Ventures ◽  
Empirical Work ◽  
Intellectual Structure ◽  
New Venture ◽  
International Strategy ◽  
Future Research ◽  
International New Venture ◽  
Time Dimension ◽  
Research Topics ◽  
Content Type

Purpose This paper aims to identify the most influential papers/authors, publication outlets and theoretical and empirical research topics of the international new venture (INV) literature. Design/methodology/approach The authors examine the intellectual structure of the INV literature using bibliometric citation and co-citation analysis. The authors focus on the 100 most cited papers in this research stream published between 1994 and 2015. In the post-hoc reading, they supplement their main bibliometric techniques with the content analysis method to shed light on some issues. Findings The authors find that the literature has grown significantly over the past two decades, increasing its relevancy in the academic discourse. The findings show the interdisciplinary nature of the INV literature, where we can find different research topics: Definition of INVs, measurements of “newness” and “degree of internationalization” and the characteristics of international entrepreneurs; time dimension in terms of speed of internationalization; international versus domestic new ventures; and the relationships between firm-specific advantages, international strategy and INV performance. Originality/value The authors identify the most influential studies and authors in the INV discipline and show its evolution from the very start to the present. They present the key topics in the literature and highlight the theoretical debates and the inconsistencies between theoretical conceptualization and measurements in the empirical work. The authors offer suggestions for promising future research directions and identify the major conceptual framework on which future research can be constructed. Overall, this study contributes to enhance the understanding of the INV phenomenon and provides useful new insights.

Gradual Internationalization vs Born-Global/International new venture models

2019 ◽  
Vol 36 (6) ◽  
pp. 830-858 ◽  
Author(s):  
Justin Paul ◽  
Alexander Rosado-Serrano
Keyword(s):  
Theory Development ◽  
Theoretical Models ◽  
Research Field ◽  
New Venture ◽  
Future Research ◽  
Born Global ◽  
International New Venture ◽  
Content Type ◽  
Future Research Agenda ◽  
Compare And Contrast

Purpose During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda. Design/methodology/approach Systematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research. Findings The authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship. Originality/value There is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.

Country-of-origin image; SMEs and emerging economies – evidence from a case study of manufacturing SMEs from Turkey

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Vahideh Arghashi ◽  
Abdullah Okumuş
Keyword(s):  
Country Of Origin ◽  
International Market ◽  
Foreign Country ◽  
Internationalization Process ◽  
Content Type ◽  
Factors Affecting ◽  
Factors Influencing ◽  
Country Of Origin Image

Purpose The purpose of this study is to investigate small and medium-sized enterprises (SMEs’) internationalization process in emerging Islamic markets and to introduce the factors affecting SMEs’ entry modes into a foreign country with emphasis on the role of country-of-origin image (COI) in these processes. Design/methodology/approach This study provides a case study to investigate the internationalization experiences of one successful SMEs in Turkey. First, this paper conducted face-to-face and semi-structured interviews with the company’s senior executives through open-ended questions. Second, this paper considered the company documentation and researchers’ observations. Finally, this paper did several classifications of the data, analyzed data by the Nvivo 10 software and extracted the results. Findings The results demonstrated that SMEs’ internationalization process designed in three stages by four key structures contained decision-making for entering and target market selection (pre-entry stage), entry mode and factors affecting it (entry-stage), designing and using control mechanisms (post-entry stage). Findings also showed that information and knowledge level, the risk level in a foreign country, the control level and supply of resources in the international market, the level of trust in knowledge, political and economic structures that governing in a foreign country are important factors influencing SMEs’ entry strategies. In particular, the results revealed that the COI significantly determines the impact rate of the factors influencing the decision to enter the international market. Research limitations/implications The most important limitation of this research is the use of a case study to investigate the subject. Findings showed COI has a significant impact on SMEs’ internationalization processes and especially on adopting a suitable entry strategy. Therefore, SMEs should pay more attention to the role of COI in the internationalization process. Originality/value This case study provides new empirical insight into the SMEs’ internationalization processes in the emerging Islamic economy. Findings introduce the factors that influence the strategy of SMEs entering foreign markets and provide a new research model for future studies.

The determinants of international new venture performance: a review and future research agenda

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sheng Huang ◽  
Yunxia Zhu ◽  
Kun Zhang ◽  
Zhenkuo Ding
Keyword(s):  
Research Agenda ◽  
Structural Equation ◽  
Current Knowledge ◽  
New Venture ◽  
Equation Modeling ◽  
Future Research ◽  
International New Venture ◽  
Firm Level ◽  
Content Type ◽  
Future Research Agenda

PurposeThe purpose of this paper is to critically review and synthesize the articles on determinants of international new venture (INV) performance to identify the research gaps in this area and develop a future research agenda.Design/methodology/approachAdopting a semi-systematic review approach with a fucus on using a vote-counting technique, this paper reviews 99 journal articles published between 1994 and 2019 to assess the determinants of INV performance.FindingsThe results indicate that the majority of the INV performance articles employ a clearly specified theoretical foundation, focus on INVs in developed economies and non-service sectors, identify numerous firm-level determinants of INV performance and use advanced statistical methods (e.g. structural equation modeling and panel data models). However, the research of INV performance is still limited by a lack of a broader integration of theories at different levels, inconsistent theoretical predictions and empirical results, knowledge gaps, and estimation biases (e.g. endogeneity).Originality/valueINV performance has received increasing attention over recent decades, but this area is still characterized by fragmentation and inconsistency. This paper provides a comprehensive and nuanced review that synthesizes and clarifies our current knowledge on the determinants of INV performance, provides further discussion with deeper insights from both theoretical and methodological aspects, and points out some directions for future research.

Impact of relatedness, uncertainty and slack on corporate entrepreneurship decisions

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Robert Garrett ◽  
Shaunn Mattingly ◽  
Jeff Hornsby ◽  
Alireza Aghaey
Keyword(s):  
Decision Making ◽  
Hierarchical Linear Modeling ◽  
Cognitive Strategies ◽  
Corporate Entrepreneurship ◽  
New Venture ◽  
Organizational Level ◽  
Linear Modeling ◽  
Slack Resources ◽  
Content Type ◽  
Positive Effect

PurposeThe purpose of this study is to evaluate the effect of opportunity relatedness and uncertainty on the decision of a corporate entrepreneur to pursue a venturing opportunity.Design/methodology/approachThe study uses a conjoint experimental design to reveal the structure of respondents' decision policies. Data were gathered from 47 useable replies from corporate entrepreneurs and were analyzed with hierarchical linear modeling (HLM).FindingsResults show that product relatedness, market relatedness, perceived certainty about expected outcomes and slack resources all have a positive effect on the willingness of a corporate entrepreneur to pursue a new venture idea. Moreover, slack was found to diminish the positive effect of product relatedness on the likelihood to pursue a venturing opportunity.Practical implicationsBy providing a better understanding of decision-making schemas of corporate entrepreneurs, the findings of this study help improve the practice of entrepreneurship at the organizational level. In order to make more accurate opportunity assessments, corporate entrepreneurs need to be aware of their cognitive strategies and need to factor in the salient criteria affecting such assessments.Originality/valueThis paper adds to the limited understanding of corporate-level decision-making with regard to pursuing venturing opportunities. More specifically, the paper adds new insights regarding how relatedness and uncertainty affect new venture opportunity assessments in the presence (or lack thereof) of slack resources.

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