Technological Knowledge, Innovation and Risk-taking Capability and International New Venture’s Performance

2013 ◽  
Vol 64 (3) ◽  
Author(s):  
Mohd. Hassan Mohd. Osman ◽  
Azizallah Roudini ◽  
Alireza Heidarzadagan
Keyword(s):  
Risk Taking ◽  
New Ventures ◽  
Technological Knowledge ◽  
Strategic Decision ◽  
New Venture ◽  
International New Ventures ◽  
International Performance ◽  
Knowledge Innovation ◽  
Data Collation ◽  
Venture Firms

The choice of technological knowledge with innovation & risk- taking capability is a significant strategic decision for the success of international new ventures (INVs) performance. Therefore, this study’s aim is to offer a new construct, build up the conception model ” technological knowledge- innovation & risk- taking capability- international new venture’s performance”. And to examine how technology knowledge and innovation & risk- taking capability of international new venture’s (INVs) firms help to them in the development of international performance. Based on the literature of the investigation, it exhibits the theoretical supporting for positive connections between variables in the proposed model. Therefore, the study will use a mix-method approach to sequential explanatory design for testing the hypotheses. An email survey instrument would be utilized for data collation. The sample of the investigation is Malaysian international new venture firms that consist of products and services. It is expected to contribute to knowledge as a resource and international entrepreneurship by illustration a model of technological knowledge, Innovation & Risk- taking Capability and international performance.

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.

Internationalisation path heterogeneity and growth for international new ventures

2020 ◽  
pp. 026624262096579
Author(s):  
Bin Guo ◽  
Zhen Wang
Keyword(s):  
Experiential Learning ◽  
Firm Growth ◽  
New Ventures ◽  
New Venture ◽  
Superior Performance ◽  
Curvilinear Relationship ◽  
International New Ventures ◽  
Fine Grained ◽  
The Cost ◽  
Venture Firms

An increasing number of new venture firms are internationalising their business operations early in their lifecycles to achieve superior performance. Taking the perspective of dynamic capability theory, our study sheds light on the effect that heterogeneity in experiential learning has on international new venture (INV) growth in terms of a curvilinear relationship. Specifically, we introduce the concept of internationalisation path heterogeneity to capture the path-specific features of INV experiential learning and capability building and explore the relationship between internationalisation path heterogeneity and INV firm growth. We also argue that this relationship will be moderated by environmental munificence because the cost and benefit of path heterogeneity is bounded. We test the hypotheses based on empirical analysis of a longitudinal dataset of 1054 INVs from 58 countries. Overall, this study provides a dynamic and fine-grained view of the role played by internationalisation path heterogeneity in driving the growth of INVs.

Role of experience and knowledge in early internationalisation of Indian new ventures

2017 ◽  
Vol 23 (6) ◽  
pp. 850-865 ◽  
Author(s):  
Pratik Arte
Keyword(s):  
New Ventures ◽  
Technological Knowledge ◽  
New Venture ◽  
International New Ventures ◽  
Content Type ◽  
Knowledge Resources ◽  
International Growth ◽  
Knowledge Based ◽  
Early Internationalisation

Purpose The purpose of this paper is to investigate the role played by knowledge and experience of the entrepreneurs in early internationalisation of small- and medium-sized Indian new ventures. Using the theory of international new ventures (INV) and knowledge-based view (KBV); the conceptual framework of this study develops three propositions. First, it has been suggested that experience of the entrepreneurs motivates them to internationalise. Second, experience of the entrepreneurs increases their market and technological knowledge. Finally, it has been suggested that without market and technological knowledge, new ventures find it difficult to expand beyond national borders. Design/methodology/approach This study employs a comparative case analysis research design to investigate the propositions. The key constructs are drawn from prior empirical research and the relationships are tested using qualitative analysis. Findings Key findings of this study suggest that along with experience and knowledge, entrepreneurs’ education background is positively associated with new venture internationalisation. It was found that importance of knowledge resources varies across nature of business and industry in which INVs operate. Research limitations/implications Findings of this study contribute to advancing the literature on INV and KBV. The findings provide a framework to entrepreneurs to help them improve their decision-making logic and increase the speed of international growth. Originality/value Very few studies have investigated the internationalisation of new ventures from India. The knowledge is limited on the ways in which entrepreneurs acquire experience and assimilate knowledge in internationalising their operations.

Entrepreneurial Grit: Insights and Applications for New Ventures

2021 ◽  
Author(s):  
Marcus Wolfe
Keyword(s):  
Risk Taking ◽  
New Ventures ◽  
New Venture ◽  
Future Research ◽  
Venture Performance ◽  
Entrepreneurial Passion ◽  
The Face ◽  
The Relationship ◽  
Entrepreneurial Careers

The pursuit of entrepreneurship is often characterized by high levels of struggle and adversity, and even those who ultimately succeed in their entrepreneurial endeavors routinely experience failures and setbacks along the way. Therefore, it is likely that individuals who are more skilled at coping with, and conquering, such obstacles in their quest for success are more apt to enter, and be successful at, entrepreneurial careers. While several factors contribute to an individual’s ability to persevere through adversity and to continue to work to accomplish long-term goals, individual grit has garnered an increasing level of attention as a key element in such persistence, particularly in entrepreneurial contexts. Grit, conceptualized as an individual’s passion and perseverance in the pursuit of accomplishing long-term goals, can play several roles in the entrepreneurial process. While grit is a potential outcome of entrepreneurial passion, it also has important associations with several key entrepreneurial outcomes. For instance, given that entrepreneurship is linked with risk-taking, grit is an asset for individuals who chase entrepreneurial opportunities. Higher levels of risk incur a greater likelihood of failure, and the ability to persist with entrepreneurial initiatives in the face of failures is potentially bolstered by high levels of grit. Furthermore, persistence against adversity can often translate into improved venture performance as a result of entrepreneurs’ continued, focused efforts at developing and improving their new venture. Furthermore, grit may play an even more important role for individuals who face heightened levels of adversity during their entrepreneurial careers. Women and younger individuals often experience unique challenges that their counterparts who are men or older do not have to face. Therefore, having high levels of grit may be an advantage in women and youth. While the relationship between grit and entrepreneurship has gained considerable momentum as a topic of scholarly interest, there are important avenues available for future research to further develop understanding of the topic.

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.

ACHIEVING SUPERIOR INTERNATIONAL NEW VENTURE (INV) PERFORMANCE: EXPLOITING SHORT-TERM DURATION OF TIES

2008 ◽  
Vol 16 (01) ◽  
pp. 1-18 ◽  
Author(s):  
MARY HAN
Keyword(s):  
Network Analysis ◽  
New Ventures ◽  
Economic Effect ◽  
The Body ◽  
New Venture ◽  
Superior Performance ◽  
International New Ventures ◽  
Short Term ◽  
Network Ties ◽  
The Impact

Network ties help international new ventures (INVs) achieve success. However, researchers have paid little attention to the duration of network ties and the impact of duration on performance. I draw on network analysis and the resources-based view to examine this area and propose a conceptual model that depicts the variables and mediating factors for INV performance. The model explains how INVs acquire, manage and exploit ties to achieve superior performance. I argue that resource-constrained INVs can minimize their investment of time and capital, and maximize the economic effect of ties, by using briefer time periods and short-term projects. I also propose that INVs adopt a 'hedging' or portfolio approach to managing ties, by collecting larger number of prospects to reduce uncertainty. The model and propositions contribute to the body of literature in network analysis and INVs. The paper highlights implications for research and practice.

Family Founding Teams, Internal and External Collaboration, and New Venture Growth

2019 ◽  
pp. 730-753
Author(s):  
Suho Han ◽  
Sae Young Lee ◽  
Melissa E. Graebner
Keyword(s):  
Initial Public Offering ◽  
Family Relationships ◽  
New Ventures ◽  
High Growth ◽  
Strategic Decision ◽  
New Venture ◽  
Family Ties ◽  
Research Questions ◽  
External Collaboration ◽  
Public Offering

Despite the prevalence of spousal, sibling, and parent–child ties within venture founding teams, little research has examined how family relationships among founders influence early entrepreneurial processes. This chapter explores how family relationships within founding teams influence internal and external collaboration. Within the firm, the chapter focuses on collaboration issues related to recruitment, changes in the management team, and strategic decision making. Beyond the firm’s boundaries, the chapter focuses on collaboration with external investors, strategic partners, potential acquirers, and post–initial public offering stakeholders. It draws upon the literatures on family businesses and high-growth new ventures to explore how family ties may influence collaboration processes over three broad stages of venture development: seed, commercialization, and growth and exit. The chapter concludes by highlighting unanswered research questions and by identifying relevant methodologies, settings, and data sources with which to address these gaps.

Learning from rivals: the memory-inconsistent strategy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chuandi Jiang ◽  
Jeffrey Muldoon ◽  
Hadi Alhorr
Keyword(s):  
Organizational Learning ◽  
New Ventures ◽  
Organizational Memory ◽  
Strategic Decision ◽  
New Venture ◽  
Multiple Sources ◽  
Content Type ◽  
Strategic Resources ◽  
Organizational Inertia ◽  
And Performance

PurposeThe purpose of this paper is to examine the role of competitive memory that assists the new ventures to overcome challenges due to the liability of newness in the strategic adaptation stage.Design/methodology/approachThis is a conceptual paper. Through a critical literature review on new venture survival and organizational memory, the authors identified the possibility for new ventures to learn from other firms from organizational learning and resource-based perspectives.FindingsThe authors found that new ventures can acquire and analyze the existing rivals' strategic moves documented in multiple sources, such as published yearbook, financial report, media, etc., and develop their own strategies. New ventures can also benefit from the relatively high degree of organizational inertia of existing rivals.Practical implicationsNew venture survival and performance are substantially affected by the initial organizational learning and strategic decision-making. Applying the memory-inconsistent strategy (MIS), new ventures that lack competitive experiences can learn from their rivals by internalizing the rivals' competitive memory as strategic resources and utilizing such resources to develop a competitive strategy.Originality/valueNew venture research in competitive markets focuses on the challenges and difficulties due to the lack of experiences, neglecting the fact that new ventures can learn from competitive memories of existing rivals. However, the lack of competitive experiences also means a lower degree of organizational inertia and other strategic commitments. The authors introduce the MIS and suggest that new ventures can benefit from strategic flexibility and create a temporary competitive advantage by surprising existing firms.

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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