The early development of International New Ventures: a multidimensional exploration

2019 ◽  
Vol 25 (6) ◽  
pp. 1340-1367 ◽  
Author(s):  
Paul Kirwan ◽  
Tiago Ratinho ◽  
Peter van der Sijde ◽  
Aard J. Groen
Keyword(s):  
Early Development ◽  
New Ventures ◽  
High Tech ◽  
International New Ventures ◽  
Content Type ◽  
Development Stages ◽  
Starting Point ◽  
Potential Resource ◽  
Foreign Operation ◽  
Representative Samples

Purpose The purpose of this paper is to investigate the early development stages of International New Ventures (INVs). Specifically, the authors explore how INVs acquire and leverage four kinds of capital – strategic, managerial, financial and social – to recognise a foreign opportunity, begin the pre-foreign entry activities, and finally start the INV. Design/methodology/approach A stage-based, multidimensional framework was used to investigate how INVs acquire and use the four capitals throughout the internationalisation process. Drawing on four case studies of high-tech INVs, this study tracks their development in three stages: foreign opportunity, pre-foreign operation and post-foreign operation. Findings Results indicate INVs build advantages and internationalisation activities occur before formal operations begin. INVs deliberately orchestrate certain kinds of capital contingent to the specific internationalisation stage. Further, the authors find that not all types of capital are equally important throughout the internationalisation process: INVs identify foreign opportunities when endowed with managerial and social capital; INVs source a majority of their managerial and financial capitals externally before internationalising; and INVs only contribute all four capitals simultaneously after internationalising. Research limitations/implications Findings contribute to knowledge about the development of INVs pre-internationalisation and pre-founding. The study is limited to a comparative sample of INVs, which impacts the generalisability. However, the findings provide a starting point for investigating similar effects using more representative samples. Practical implications Entrepreneurs can be proactive in networking activities to allow them greater opportunity to interact with potential resource providers dependent on the stage of internationalisation. Originality/value This study contributes to the international entrepreneurship literature with qualitative evidence of the micro-level processes of internationalisation. Very few studies investigate the early, pre-internationalisation and pre-foundation, development stages of INVs.

Networking, business process innovativeness and export performance: the case of South Asian low-tech industry

2017 ◽  
Vol 32 (6) ◽  
pp. 864-875 ◽  
Author(s):  
Anisur R. Faroque ◽  
Sussie C. Morrish ◽  
Ahmed Shahriar Ferdous
Keyword(s):  
Business Process ◽  
Export Performance ◽  
New Ventures ◽  
Developed Countries ◽  
Theory And Practice ◽  
Future Research ◽  
High Tech ◽  
International New Ventures ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this study is to investigate the role of business process innovativeness in the networking-export performance relationship in a developing country low-tech industry setting. Most innovation research in international business and entrepreneurship is conducted on high-tech industries in developed countries. Less research has focused on the low-tech industry context. This study bridges this research gap by testing whether international new ventures’ (INVs) networking resources impact their export performance through business process innovativeness. Design/methodology/approach The study tests the link between low-tech INVs’ networking, business process innovativeness and export performance using a sample of 647 export start-up apparel firms in Bangladesh, the second largest apparel exporter in the world. Findings The results recognize that an INV entrepreneur’s personal and inter-firm networking are directly and positively related to business process innovativeness and export performance. The findings also indicate that business process innovativeness acts as a mediator only between an INV’s inter-firm networking and its export performance. Research limitations/implications The study was undertaken in a Bangladeshi low-tech industry setting-the apparel sector; thus, future research may include data collection from a range of industries across countries. Data collected for the purpose of this study used a cross-sectional research design, and this may only have confirmed the relationships in the model and not causality between the constructs. Practical implications The findings highlight that low-tech INVs should focus more on leveraging their personal and inter-firm networking resources, as this should result in improved export performance. The results also provide directives for INVs in regard to improving their business process innovativeness to achieve increased performance. Originality/value The study is not only carried out in the context of low-tech early internationalizing firms (i.e. INVs), but also contributes to theory and practice by testing whether INVs’ networking resources (personal and inter-firm) have an impact on business process innovativeness, which in turn leads to improved performance.

Factors leading to early internationalization in emerging Central and Eastern European economies

2017 ◽  
Vol 29 (2) ◽  
pp. 219-242 ◽  
Author(s):  
Jurgita Sekliuckiene
Keyword(s):  
Case Studies ◽  
Emerging Economies ◽  
Transition Economy ◽  
International Entrepreneurship ◽  
New Ventures ◽  
Future Research ◽  
High Tech ◽  
International New Ventures ◽  
Content Type ◽  
Early Internationalization

Purpose The purpose of this paper is to explore factors leading to the early internationalization of international new ventures (INVs) in Lithuania – a transition economy in Central and Eastern Europe (CEE). The determinants of early internationalization were grouped into three categories: entrepreneurial, firm-related and contextual determinants, and their impact on high-tech INVs that operate in emerging economies was investigated. Design/methodology/approach The research design is a case study approach. Case studies are presented of six Lithuanian entrepreneurial firms that demonstrated successful internationalization and rapidly expanded into foreign markets during the preceding year. Findings Region-specific theoretical propositions are provided for new ventures in CEE emerging economies. The results reveal that essential factors leading to the early internationalization of INVs operating in Lithuania, a transition economy, are entrepreneurial factors. Internationalization of INVs from CEE emerging economies is driven by push factors related to domestic market specifics; however, institutional factors do not seem to have a significant impact on INVs’ internationalization. Research limitations/implications The results of the analysis of the case studies are not generalizable to the entire population of INVs in Lithuania. However, the results are substantial considering the success of high-tech Lithuanian firms that started their international activities shortly after their inception. Future research can contribute to the literature by seeking to apply international new venture theory in the context of emerging economies with larger samples and a focus on distinct patterns of internationalization. Originality/value The findings contribute to the literature on international entrepreneurship by exploring early internationalization of INVs in the context of transition economies in CEE. This study’s contribution is based on theory building, especially in understanding the driving factors related to the early internationalization of new ventures founded by Lithuanian entrepreneurs. International entrepreneurship studies in the CEE, as well as Baltic countries, are limited, and this research contributes to filling this gap.

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.

Innovation for a (high-tech) nation

2018 ◽  
Vol 34 (12) ◽  
pp. 12-14
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
New Ventures ◽  
Innovation Strategy ◽  
High Tech ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings High-tech new ventures are typically beset by significant challenges in their marketplaces. Using effectuation, innovation strategy and the moderating force of opportunity shaping, they are able to gain competitive advantage. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

ERP in clouds or still below

2014 ◽  
Vol 16 (1) ◽  
pp. 62-76 ◽  
Author(s):  
Igor Grubisic
Keyword(s):  
Decision Support ◽  
Data Privacy ◽  
Significant Risk ◽  
High Tech ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Starting Point ◽  
Readiness To Adopt ◽  
High Level ◽  
The Cost

Purpose – The purpose of this paper is to investigate the market readiness to adopt the Cloud as the future ERP platform, by using the analytic hierarchy process (AHP) decision support methodology. Design/methodology/approach – Interviewing is conducted on the convenient sample, of enterprises from various industries. The interview is conducted through expert telephone interview and self-administered questionnaire. Results are then used as a basis for forming the weight factors necessary for the AHP decision model. Data are analyzed and synthesized using AHP and Expert Choice. Findings – Results demonstrate a huge interest for TCO reduction, but also a concern for data privacy and availability. Large enterprises want their data on local servers, while smaller companies tend to act as “first adopters”, mainly because of the cost benefits that Cloud offers. Finally, vendors see the hybrid solutions as the most suitable approach for the overall market, at least while current Cloud obstacles exist. Research limitations/implications – This research does not aim to answer the question what is the best solution for a particular industry. Instead, it assumes the general approach, which answers the question what would in general be the adequate solution for the SME and how much are SMEs ready to adopt the ERP in the Cloud. A further research is necessary to validate these results in practice. That research should be industry specific, i.e. narrowed to one industry only. Then, it would be possible to answer the question what is the best solution for high-tech SMEs. Practical implications – This paper summarizes Cloud pros and cons useful for decision makers to establish a starting point for IT reorganization. Additionally, AHP results provide some indications of the market's perception regarding Cloud and ERP, while vendors' statements about ERP-Cloud solutions provide an interesting glimpse of the ERP market in the next few years. Originality/value – Market demands constant flexibility and cost effectiveness, forcing companies to adapt faster than ever. Therefore, there is a significant risk for first adopters and their business if they adopt an inadequate solution. This paper offers a high-level overview of the SME's market understanding and willingness to adopt ERP in the Cloud idea, and it demonstrates how the AHP decision support methodology can be used to assess the readiness of enterprises to adopt the Cloud-ERP solution.

High-tech workplace tools are key to winning the war for talent

2018 ◽  
Vol 17 (4) ◽  
pp. 176-180
Author(s):  
Jacob McNulty
Keyword(s):  
Design Methodology ◽  
Work Environments ◽  
Data Driven ◽  
High Tech ◽  
Economic Expansion ◽  
Content Type ◽  
Productive Work ◽  
Starting Point ◽  
Good Starting Point ◽  
War For Talent

Purpose With HR now at the center of efforts to address the talent crisis, how can HR strategists best deploy their resources to help their organizations to rise to the challenge? Design/methodology/approach Data-driven digital solutions can be a good starting point for discovering what’s working with existing employees. A new breed of high-tech tools are giving HR departments the means to more thoroughly and actionably understand the factors that attract, retain and drive away quality employees. Findings Based on data from these tools, HR teams can design inviting, engaging and productive work environments. Originality/value The struggle to attract and retain quality talent in the workplace is real, it is escalating and it has landed right at the doorstep of HR departments. It is perhaps the most pressing priority they – and their entire organizations – must confront to keep pace in the ongoing US economic expansion.

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.

Behavioral patterns in born-again global firms

2014 ◽  
Vol 22 (4) ◽  
pp. 418-441 ◽  
Author(s):  
Patrick Schueffel ◽  
Rico Baldegger ◽  
Wolfgang Amann
Keyword(s):  
International Entrepreneurship ◽  
New Ventures ◽  
Case Study Research ◽  
Content Type ◽  
Study Research ◽  
Starting Point ◽  
Study Results ◽  
Established Firms ◽  
Born Again

Purpose – The purpose of this paper is to identify factors that influence so-called born-again global firms’ internationalization behavior. Specifically, this article explores the following questions: why do mature, domestically focused firms suddenly turn into born-again global firms, how do they do so and what elements are needed for born-again global firms to be sustainable. Design/methodology/approach – Using an established international entrepreneurship model as a starting point, we extract relevant factors for a conceptual framework on born-again global firms’ internationalization activities. Case study research among a cross-sectional sample of born-again global firms is being applied for that purpose. Findings – Driven by the insufficient size of their domestic market, born-again global firms typically embark on internationalization after a generational change at the chief executive officer level. Throughout their internationalization journey, they flexibly adapt toward new needs of their foreign environments. Due to their idiosyncratic characteristics, born-again global firms deserve consideration as a separate group of research objects in the field of international entrepreneurship. Research limitations/implications – The investigated sample of case study firms was drawn across a variety of industries. As such, industry-specific conditions could not be observed and the findings from case study research run the risks of being generalized too broadly. In addition, the accuracy of the case study results may suffer from a certain degree of hindsight bias as the internationalization event took place in the past. Practical implications – Openness to learning from other markets and the flexibility to modify products according to client needs strengthen born-again global firms’ competitiveness. To endure, born-again global firms have to be innovative in adapting to changes, which makes it easier for them to launch their products in new markets. Originality/value – To date, international entrepreneurship has focused on the activities of small and newly established firms, largely neglecting the behavior of somewhat larger and established firms in traditional sectors. This study shows that established companies can exhibit the same innovative, proactive and risk-seeking behavior across borders as new ventures do. Despite their strongly rooted structures, strategies and cultures, born-again globals can flexibly adapt to new environments.

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