Sales growth or employment growth? Exporting conundrum for new ventures

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mei Chen ◽  
Peijie Ni ◽  
Torger Reve ◽  
Jing Huang ◽  
Ren Lu
Keyword(s):  
International Business ◽  
Employment Growth ◽  
New Ventures ◽  
International Markets ◽  
Global Market ◽  
Sales Growth ◽  
Firm Level ◽  
Content Type ◽  
Industrial Enterprises ◽  
Heterogeneous Effects

Purpose Previous studies primarily focus on how to achieve better performance in the international markets, but few centers on whether internationalization is a promising strategy for new ventures’ growth and development. Based on two pioneering frameworks Conservative, Predictable, and Pacemaker (CPP) model and the 7-P model, this paper fills this gap by analyzing how exporting exert heterogeneous effects on two types of growth, sales growth and employment growth. Accordingly, this paper aims to favor market-oriented new ventures to make a strategy on expanding international markets. Design/methodology/approach This study is based on firm-level data from the Chinese Industrial Enterprises Database. The year 2005 was used as the shock year. By conducting the propensity score matching method, 793 couples of matched new ventures were collected with sales growth and 686 couples with employment growth. The difference-in-differences method was applied to analyze the various influences that exporting has on new ventures’ sales growth and employment growth. Findings The main finding of this paper is that new ventures that exported can achieve better sales growth than their counterparts that only operated domestically, whereas new ventures that remain in the domestic market have no difference in employment growth from those that exported. Research limitations/implications This study shows that exporting is especially beneficial for market-seeking new ventures. Because the study is based on Chinese data, scholars of international business can conduct further research on other countries with different economic structures. Originality/value Theoretically, this paper contributes to both international business theory and entrepreneurship theory by combining the CPP model and the 7-P model. Practically, this paper shows that exports mainly benefit the sales growth of new ventures. This suggests that business practitioners should consider their growth goals before they choose to enter the global market.

Early Internationalizing of Small-Medium Firms

2022 ◽  
pp. 46-63
Author(s):  
Afifah Alwani Ramlee
Keyword(s):  
New Ventures ◽  
International Markets ◽  
Global Market ◽  
New Venture ◽  
International New Ventures ◽  
Born Global ◽  
Business World ◽  
Catch Up ◽  
Venture Firms ◽  
Medium Firms

Internationalization is not an odd term in business, and increasing numbers in the business world show this phenomenon as a vital element that must be emphasized and practiced by an organization to become the top company in international markets. Born global has become a new entity entering the global market and rapidly evolved to catch up and maintain its pace with international new ventures. Gaining the upper hand in the international market has motivated the born global entity to compete with other giant companies in the same markets. This chapter's findings enlighten the crucial parts of the definition between these two terms supported with previous studies that encompass gaps, conventional and new ventures, and the advantages versus liabilities that existed in the new venture firms. In addition, this chapter's discussions would offer better justification and views in global market perspectives.

Bangladeshi clothing manufacturers' technology adoption in the global free trade environment

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haesun Park-Poaps ◽  
Md Sadaqul Bari ◽  
Zafar Waziha Sarker
Keyword(s):  
Sustainable Development ◽  
Technology Adoption ◽  
Online Survey ◽  
Manufacturing Sector ◽  
Global Market ◽  
Firm Level ◽  
Middle Income ◽  
Content Type ◽  
Differentiation Strategy ◽  
Export Orientation

PurposeThe purpose of this study was to investigate the status of technology adoption (TA) among clothing manufacturers in Bangladesh and examine the influences of contextual factors on their TA level. Particularly, the authors examined the effects of export orientation, top management commitment (TMC), competitive pressure (CP), cost of capital (CC) and technical skills (TS).Design/methodology/approachThe data were collected from Bangladeshi clothing manufacturer through an online survey. A firm was treated as a unit of analysis.FindingsThe results revealed that the most common technologies adopted were information technology and software related and the least common were automation related. Export orientation negatively influenced while TS and CP positively influenced the level of TA.Research limitations/implicationsDue to the difficulty in obtaining firm level data, data collection did not utilize a random sampling. Only firms that agree to participate were included in the data.Practical implicationsThe authors suggest the Bangladeshi clothing manufacturers to adopt selective technologies that complement the cost leadership strategy rather than immediate differentiation strategy or technology innovations.Social implicationsFocused investment in human capitals and knowledge transfer in Bangladesh, one of the newly classified developing country, should sustain their competitiveness in the global market. Further discussions provide various stakeholders with insights related to trade policies, international aids and the UN's sustainable development agenda.Originality/valueThis study tackles a void that exists in TA research within the labor intensive clothing manufacturing sector, especially in a lower-middle income country, which surprisingly became the second largest clothing supplier today. Unique nature of the sector as an entry to economic development process in connection to the sustainable development concept is discussed to generate implications for practitioners as well as policy makers.

An interview with Romira Young: opportunities and challenges for local small business owners in the tourism and hospitality industries in time of disasters

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anita Bledsoe-Gardner
Keyword(s):  
Small Businesses ◽  
Structured Interview ◽  
International Markets ◽  
Business Owners ◽  
Global Market ◽  
Global Network ◽  
Small Business Owners ◽  
Content Type ◽  
Small Minority ◽  
Tourism And Hospitality

Purpose The purpose of this interview aims to offer a means to better understand tourism as it relates to small businesses within a global network. Design/methodology/approach A semi-structured interview was used. Findings The key findings are in line with Masco’s (2017) research that asserts “change can be selective and/or optional for the tourism stakeholders (e.g. tourists, operators, destination organizations, policymakers, local communities, employees), the nature and degree of crises-led transformations depend on whether and how these stakeholders are affected by, respond to, recover and reflect on crises”, particularly small minority-owned tourist companies. Practical implications This interview provides a lens to better understand how small businesses operate within the global market and remain at the cornerstone for sustaining domestic and international markets. Originality/value This study highlights small minority-owned business and their ability to become resilient. This interview illustrated that grounded small businesses, while implored with challenges from natural disasters, also have the resiliency to overcome such challenges when the agency has the ability to provide “turn-key” services for their clients thereby providing clients a sense of agency and value-laden experiences via personalization of services.

Success factors influencing the selection of the location of international firms

2020 ◽  
Vol 30 (5) ◽  
pp. 665-679
Author(s):  
Marwan Al Qur’an
Keyword(s):  
International Business ◽  
Critical Success Factors ◽  
Success Factors ◽  
International Markets ◽  
Market Selection ◽  
Content Type ◽  
International Firms ◽  
Critical Success ◽  
Selection Of

Purpose This study aims to explore critical success factors contributing to the selection of beneficial foreign markets by Arabian international firms. Design/methodology/approach Multiple case study method was adopted in the study, and thus, two rich-information comparative case studies were purposefully selected from Arabian large firms. Additionally, seven international market selection (IMS) decisions were examined through relying on personal interviews and archival data, and field notes as secondary data resources. Two main stages of analysis were undertaken, i.e. within and cross-case analyses. Findings The results showed four critical factors contributing to the selection of beneficial international markets by Arabian firms, i.e. international business experience of the selected management team, the market knowledge about the potential international markets, in-house and external consultations with international business experts and identification of a trustworthy and internationally experienced manager for the international operation. Practical implications The results have important implications to business managers by improving their foreign market selection behavior. Further, the research’s findings can assist less-experienced firms, willing to internationalize their businesses, in enhancing their decision-making process to arrive at beneficial country for their international operations. Originally/value The research findings provide significant theoretical contribution to literature review on the internationalization process of firms through addressing critical success factors in IMS decision process. Further, it provides significant methodological contributions in relation to the effectiveness of the case study approach in capturing elements of the IMS process.

The Influence of the Entrepreneur's Network on the Internationalization of Young French Firms

2009 ◽  
Vol 10 (3) ◽  
pp. 213-221 ◽  
Author(s):  
Mathieu Cabrol ◽  
Véronique Favre-Bonté ◽  
Alain Fayolle
Keyword(s):  
International Business ◽  
Qualitative Method ◽  
New Ventures ◽  
International Markets ◽  
International New Ventures ◽  
Professional Experience ◽  
Born Globals ◽  
Business Network ◽  
International Networks ◽  
Start Up

Young and rapidly internationalizing firms, known as ‘international new ventures’ (INVs) or ‘born globals’ (BGs) have developed their ability to grow rapidly in international markets primarily because the entrepreneur and his or her team have established an international network. Based on six case studies of young technological firms located in the Rhône–Alpes region of France and using a qualitative method, this study focuses on the founders' capabilities in creating and developing an international business network. The results show that entrepreneurs build on their previous professional experience to mobilize international networks during the start-up phase in order to drive the firm's activities.

Growth and job creation at the firm level: Swedish SME data

2018 ◽  
Vol 41 (3) ◽  
pp. 345-358 ◽  
Author(s):  
Darush Yazdanfar ◽  
Peter Öhman
Keyword(s):  
Job Creation ◽  
Sales Growth ◽  
Firm Level ◽  
Employment Level ◽  
Data Set ◽  
Resource Based View ◽  
Content Type ◽  
Large Panel ◽  
Industry Sectors ◽  
The Impact

Purpose The purpose of this study is to investigate the association between firm sales growth and employment level as a proxy for job creation among small and medium-sized enterprises (SMEs). Design/methodology/approach The hypotheses were empirically examined by performing several univariate and multivariate regressions to investigate a large panel data set of 13,548 Swedish SMEs in four industry sectors in the four-year period from 2009 to 2012. Findings The results indicate that growth, in terms of sales, as a competitive advantage is positively related to the number of employees hired by the sampled firms. In addition, the size and age variables are also positively associated with the number of employees hired. The results support the suitability of implementing the resource-based view to explain job creation by SMEs. Originality/value While previous studies have mostly ignored the impact of these firm-level variables on job creation, the current study highlights the effect of firm-specific characteristics such as sales growth, size, age and industry. The authors use a combination of models to analyse a large cross-sectoral data set regarding the association, in SMEs, between the firms’ sales growth and job creation.

Global dairy market will be depressed through 2015

2015 ◽  
Keyword(s):  
Dairy Products ◽  
Oil Prices ◽  
International Markets ◽  
Global Market ◽  
Production Costs ◽  
Content Type ◽  
Export Supply ◽  
Dairy Market ◽  
Food Imports

Subject Outlook for the global dairy products market. Significance Increased production by dairy exporters in late 2013 and early 2014 eroded prices of dairy products traded on international markets, mostly butter, cheese and milk powders. This decline accelerated from mid-2014 due to reduced Chinese imports and Russia's embargo on food imports from several dairy exporters; the two countries together account for 22% of global dairy imports. Prices for internationally traded dairy products have fallen by more than 45% since mid-2014 as export supply, though scaled back, still outstrips demand. Impacts Rising Chinese dairy output over the longer run could fundamentally alter the global market. Dairy prices could remain subdued beyond 2016 if global oil prices do not rise. Russian embargo will hit EU dairy exporters, but falling production costs will boost their competitiveness.

Effects of CEO humility and relationship conflict on entrepreneurial performance

2020 ◽  
Vol 31 (3) ◽  
pp. 489-508 ◽  
Author(s):  
Yi Li ◽  
Feng Wei ◽  
Siyue Chen ◽  
Yushan Yan
Keyword(s):  
New Ventures ◽  
Mediating Effect ◽  
Relationship Conflict ◽  
Firm Level ◽  
Content Type ◽  
Entrepreneurial Performance ◽  
Political Skills ◽  
Entrepreneurial Teams ◽  
Entrepreneurial Team ◽  
Humble Leadership

Purpose First, this paper aims to explore how CEO humility and relationship conflict in entrepreneurial teams affect the firm-level performance of new ventures. Second, it investigates the moderating effect of CEO political skills on the indirect association between CEO humility and entrepreneurial performance through relationship conflict in entrepreneurial teams. Design/methodology/approach A questionnaire survey was administered to CEOs and their entrepreneurial team members in 171 start-ups in Shanghai, China. The data obtained from the survey were subjected to multiple regression analysis using the SPSS PROCESS macro and confirmatory factor analysis using Mplus. Findings The findings are as follows. First, CEO humility can reduce relationship conflict in entrepreneurial teams. Second, CEO political skills moderate the link between CEO humility and relationship conflict in entrepreneurial teams. The weaker the CEO political skills, the stronger the effect of CEO humility on relationship conflict, and the stronger the CEO political skills, the weaker the effect of CEO humility on relationship conflict. Third, relationship conflict in entrepreneurial teams is negatively related to entrepreneurial performance. Finally, CEO political skills moderate the mediating effect of entrepreneurial team relationship conflict on the CEO humility – entrepreneurial performance link. Practical implications The findings of this study offer guidance for entrepreneurs seeking to improve firm performance. The findings suggest that entrepreneurs should adopt a humble leadership style that cultivates their strengths and minimizes their weaknesses. To improve the centripetal force and cohesion of the entrepreneurial team, they should focus on the team, affirm the contribution of subordinates and accept subordinates’ advice. Originality/value The study reveals that CEO humility has a positive effect on entrepreneurial performance, which enriches research on the effectiveness of humble leadership at the firm level. From the perspective of team relationship conflict, the study also explores the mechanism underlying the effect of CEO humility on entrepreneurial performance, opening the “black box” of CEO humility and entrepreneurial effectiveness. In addition, the study reveals the boundary conditions of the influence of CEO humility, enriching the theoretical literature on humble leadership, political skills and resource conservation.

Internationalization to survive; the case of renewable energy companies in Spain

2017 ◽  
Vol 27 (4) ◽  
pp. 306-334 ◽  
Author(s):  
Seyed Meysam Zolfaghari Ejlal Manesh ◽  
Alex Rialp-Criado
Keyword(s):  
Renewable Energy ◽  
Small Firms ◽  
International Markets ◽  
Energy Industry ◽  
Firm Level ◽  
Sustainable Entrepreneurship ◽  
Content Type ◽  
Future Studies ◽  
Energy Companies ◽  
Renewable Energy Industry

Purpose In this study, entrepreneurial internationalization in renewable energy industry as a high-tech and emerging industry was explored. The focus of this study is on firm level factors to understand how and why these companies entered the international markets and what are their challenges and difficulties in this process. To answer these questions, two main streams of literature were used: international entrepreneurship (IE) and sustainable entrepreneurship. Design/methodology/approach Case study methodology is selected for this research. Because this subject is new and empirical researches in renewable energy industry are scarce, a method to gather research and in-depth data was adopted. Following suggestions by Eisenhardt (1989), a multiple-case design method was used with nine cases of entrepreneurial companies in renewable energy industry from Spain. Findings Results show that in renewable energy industry firms, resources and capabilities such as need for funding and rapid commercialization are key factors that encourage companies to enter the international market. However, having access to the technological knowledge cannot be a compelling reason for internationalization of renewable energy companies from Spain. Moreover, the interaction between the large and small firms is an important factor that facilitates the process of internationalization. Research limitations/implications In this study, the focus was only on firm level factors, whereas other levels of analysis such as entrepreneur, environment, policy scheme and industrial factors need further attention in future studies. Moreover, this study is only limited to Spanish companies, and future studies can be replicated in other context. Practical implications Findings of the study have significant theoretical and empirical implications. First of all, it explains the entrepreneurial internationalization by taking advantage of sustainable entrepreneurship literature. In addition, empirical results of this study are significantly important for entrepreneurs to implement effective internationalization strategy to survive. Findings of this study can help policy makers for designing a supportive scheme for further development of this industry in the international markets. Originality/value This paper explores the entrepreneurial internationalization of renewable energy companies as an emerging industry by taking advantage of two streams of literature: international entrepreneurship and sustainable entrepreneurship. The results show the phenomenon of early internationalization in pre-commercialization phase. These findings put emphasis on interaction between large and small firms in process of internationalization in this specific industry.

scholarly journals The tortuous ascent of global value chains – the case of pharmaceutical R&D in China

2017 ◽  
Vol 13 (3) ◽  
pp. 244-262 ◽  
Author(s):  
Graham Hollinshead
Keyword(s):  
International Business ◽  
Value Chain ◽  
Single Case ◽  
Social Factor ◽  
Global Value Chains ◽  
Emerging Economy ◽  
Organizational Level ◽  
Value Chains ◽  
Content Type ◽  
Industrial Enterprises

Purpose This paper aims to explore the micro-political complexities of operating over institutional distance in a modern international enterprise. The focal sector of the study is the pharmaceutical industry, which, in its latest phase of global development, has engaged in “internal sourcing” of research and development (R&D) talent from China. This paper contributes to emergent “socio-political” theorization in international business through revealing complex forms of workplace segmentation and conflictual forms of practice at micro-organizational level. Design/methodology/approach The author of this paper and a UK-based research associate visited the Shanghai-based R&D facility of a major Western owned pharmaceutical concern to carry out interviews with key managers, expatriates and scientists to “hear their stories”. Access was gained to the research site through insider contacts. Findings It was discovered that, in the context of an enterprise intent on innovation, motivational logics themselves emanate from the embedded positions of diverse organizational actors, in turn bringing to the fore issues of power, resistance, ethnicity and language. Research limitations/implications Generalizations from a single case study may have limited significance. However, the unique case setting provides the scope for a novel contribution to the field of international business by examining contradictory and asymmetrical factors in the social construction of a Global Value Chain extending from West to East to source emergent local talent. Practical implications The case offers the possibility for managerial learning in the areas of working across cultures, managing expatriation, dealing with linguistic and etymological differences and formulating international business strategy (integration or differentiation in the MNC). The study highlights the significance of critical realist perspectives in fostering reflexive behaviours of actors in multilayered and complex micro-environments. Social implications The work has significance concerning the devolution of both managerial and medical responsibilities to local agents in China. This is a vital social factor in the emerging economy context. The work also casts light on social and personal issues confronting international managerial and scientific migrants. Originality/value To date, the phenomena of Global Value Chains have been approached in a relatively transactional and economistic fashion. The paper shed light on GVCs as humanistic and political phenomena. A relatively new departure of the study is to demonstrate that workplace actors in modern and modularized industrial enterprises located in the emerging economy setting respond to environmental volatility through engaging in variant and conflictual forms of institutional entrepreneurship.

Sign in / Sign up

Export Citation Format

Share Document