scholarly journals Coping with uncertainty in the internationalisation strategy

2019 ◽  
Vol 36 (1) ◽  
pp. 131-163 ◽  
Author(s):  
Giovanna Magnani ◽  
Antonella Zucchella
Keyword(s):  
New Ventures ◽  
International New Ventures ◽  
Entrepreneurial Firms ◽  
Theory Approach ◽  
Born Globals ◽  
Content Type ◽  
Internationalisation Strategy ◽  
Main Components ◽  
Born Again ◽  
Niche Strategy

Purpose The purpose of this paper is to explore uncertainty-coping strategic actions in the internationalisation strategy of entrepreneurial ventures, encompassing born globals/international new ventures, enduring established internationalisers, old born globals, born-again globals and micro-multinationals. Design/methodology/approach The authors developed a qualitative exploratory study applying a grounded theory approach to ten entrepreneurial firms to investigate the strategies they adopted to cope with Knightian uncertainty in international markets. Findings The global niche strategy emerged as a successful path to deal with uncertainty in smaller firms’ internationalisation. The authors uncover the components of this strategy, namely the creation of markets, the focus on global clients and the control of technology. Originality/value The contribution of this paper consists in exploring how entrepreneurial firms cope with uncertainty through a global niche strategy and in outlining its main components. The authors develop a model of smaller entrepreneurial firms’ international strategising under this perspective. The research thus links together international marketing and strategy with (international) entrepreneurship studies.

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.

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.

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.

Industry life cycle, geographic diversification and performance of international new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nitin Pangarkar ◽  
Lin Yuan
Keyword(s):  
Life Cycle ◽  
New Ventures ◽  
High Technology ◽  
International New Ventures ◽  
Geographic Diversification ◽  
Content Type ◽  
Industry Life Cycle ◽  
And Performance ◽  
The Impact ◽  
Technology Industries

Purpose The purpose of this paper is to examine how geographic diversification affects the performance of international new ventures. Design/methodology/approach This study develops hypotheses about the individual and joint effects of geographic diversification and industry life cycle on the performance of international new ventures. This paper also introduces industry technology characteristics as a contingent factor for the above relationships and tests the hypotheses on a large panel data set. Findings Based on the analyses of the strategies and performance of 699 listed Chinese international new ventures between 1991 and 2014, this study finds that the impact of geographic diversification on performance is contingent on the stage of the industry life cycle and that the moderating effect differs across high-technology and low-technology industries. The results suggest that it is fruitful for international new ventures in high-technology industries to undertake geographic diversification in earlier stages of the industry life cycle, but international new ventures in low-technology industries are better off undertaking geographic diversification during the later stages of the industry life cycle. Originality/value The study contributes to the literature on international entrepreneurship by identifying the industry life cycle conditions under which the learning advantages of international new ventures are effective and facilitate the achievement of better performance. This paper also shows that industry technology type matters for geographic diversification strategies of international new ventures.

scholarly journals The roles of deals and business networks in innovation processes

IMP Journal ◽  
2017 ◽  
Vol 11 (1) ◽  
pp. 25-50 ◽  
Author(s):  
Per Ingvar Olsen ◽  
Håkan Håkansson
Keyword(s):  
New Technology ◽  
New Ventures ◽  
Innovation Process ◽  
Secondary Data ◽  
International New Ventures ◽  
Business Networks ◽  
Global Business ◽  
Financial Flows ◽  
Content Type ◽  
Innovation Processes

Purpose The purpose of this paper is to analyze the roles of deals in innovations processes, based on the definition of a deal as the interaction of social-material value-creating processes with money-handing processes. Design/methodology/approach The paper is based on a study of the historical emergence of transaortic valve implantation (TAVI) as an innovative new technology in the area of thoracic surgery in a global setting. The study is based on a combination of interviews and secondary data analysis. Findings The authors found that deals play important roles in innovation processes as critical junctions that mark entries to different phases and generate major shifts in location as well as combination of resources, activities and actors. These shifts include radical changes in control, where actors in possession of resources necessary to bring the project through the next phase, move in to take control – thereby expanding their businesses to new growth niches. Based on the analysis of seven deals, the authors argue that the innovation process is a combined push and pull process where later stage entrepreneurial interests play very significant roles. Deals may also represent radical turning points and moves of the projects that set the project off in a different direction, usually also associated with shifting ownership control rights through the innovation and scaling process. The authors also argue that inventions in the periphery will tend to move to the areas with the most competent relevant business networks capable of adopting and expanding the innovation to a global business operation. The innovation process is not primarily about creating new resources and activities, but about recombining existing resources, competencies and activities. Supplier networks play particularly important roles in these processes. Research limitations/implications The authors suggest that the study indicates that IMP researchers should turn more attention to studying business deals and financial flows and influences – in particular in studies of innovations and innovation processes – to investigate the mechanisms by which new innovations interact with and transform existing business networks. Social implications This work highlights why and how an innovation that may initiate anywhere in the periphery, will tend to move to the most competent and capable networks around the globe, that are the most relevant to the needs of the innovation project. Hence, the more powerful business networks and eco-systems will tend to pull interesting inventions in from their periphery, and grow them effectively. Originality/value The paper expands the efforts in IMP theorizing to include financial/monetary interactions more explicitly into business network theory. It also aims at clarifying core IMP arguments toward entrepreneurship research, in particular research on international new ventures.

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.

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