What do we know about capabilities and early internationalization? A review and synthesis

Purpose The purpose of this study is to organize and assess knowledge on the capabilities pertinent to the early internationalization of born globals (BGs) and international new ventures (INVs). Design/methodology/approach A systematic approach is used to search, code, organize and synthesize 155 peer-reviewed journal articles on capabilities and early internationalization. Findings The study delimits eight operational and five dynamic capabilities. The synthesis links capabilities to three antecedents (i.e. firm specific factors, managerial socio cognitive attributes and market factors) and three outcomes (i.e. precocity, survival and performance). While 7 of the 12 linkages identified are well-established, relationships involving market factors, survival and dynamic capabilities are sparsely researched. Research limitations/implications The authors know more about the effects of firm specific factors and managerial socio cognitive attributes on operational and dynamic capabilities than we do the influence of market factors on either group of capabilities. Likewise, the authors know more about the influence of operational and dynamic capabilities on performance than we do their impact on precocity or survival. Practical implications As the pandemic has shown, businesses with adaptable capabilities (e.g. shifting from a brick and mortar to an online/omnichannel approach or micro-breweries competent to switch from manufacturing beer to hand sanitizer) have increased their chance of survival while helping society cope. Originality/value This to the authors’ knowledge is the first study to provide a comprehensive review of literature on the nebulous concept of capabilities, in the context of the burgeoning research stream on early internationalization.

Early Internationalizing of Small-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.

Exploring the Internationalisation of Chinese Privately-owned Enterprises (POEs)

<p>Internationalisation has long been a focus of research among international business scholars. However, there is little knowledge about Chinese firms' internationalisation processes. This study is based on the premise that Chinese firms may have different international behaviours, compared to Western firms, given China's distinctive institutional and cultural environments. To test this argument, this thesis examines Chinese firms' internationalisation rationales, approaches and influential factors. It focuses on small and medium-sized privately-owned enterprises (POEs) that are actively engaged in international operations. Interviews were conducted with decision makers of six POEs from four industries, including the telecommunications networks, electronics, meters, and textiles. These firms were located in Guangdong, Fujian and Zhejiang provinces. The data collected were analysed using within-case and cross-case analysis approaches. Findings were then compared to extant literature, including the Uppsala's internationalisation process model (U-model) and the theory associated with international new ventures (INVs). The findings presented here indicate that the Chinese POEs' internationalisation behaviours are not particularly different from their Western counterparts. Even though neither the U-model nor the INVs framework alone could fully capture the complexities of the Chinese POEs' internationalisation processes, both demonstrate their applicability in different ways. The study develops 15 propositions that should enable researchers to develop a better understanding of Chinese POEs' internationalisation processes. The thesis concludes with a discussion of the implications of these findings for theory development and future research, as well as managerial implications. This case study contributes to a wider theoretical understanding of Chinese POEs' internationalisation behaviours.</p>

Exploring the Internationalisation of Chinese Privately-owned Enterprises (POEs)

<p>Internationalisation has long been a focus of research among international business scholars. However, there is little knowledge about Chinese firms' internationalisation processes. This study is based on the premise that Chinese firms may have different international behaviours, compared to Western firms, given China's distinctive institutional and cultural environments. To test this argument, this thesis examines Chinese firms' internationalisation rationales, approaches and influential factors. It focuses on small and medium-sized privately-owned enterprises (POEs) that are actively engaged in international operations. Interviews were conducted with decision makers of six POEs from four industries, including the telecommunications networks, electronics, meters, and textiles. These firms were located in Guangdong, Fujian and Zhejiang provinces. The data collected were analysed using within-case and cross-case analysis approaches. Findings were then compared to extant literature, including the Uppsala's internationalisation process model (U-model) and the theory associated with international new ventures (INVs). The findings presented here indicate that the Chinese POEs' internationalisation behaviours are not particularly different from their Western counterparts. Even though neither the U-model nor the INVs framework alone could fully capture the complexities of the Chinese POEs' internationalisation processes, both demonstrate their applicability in different ways. The study develops 15 propositions that should enable researchers to develop a better understanding of Chinese POEs' internationalisation processes. The thesis concludes with a discussion of the implications of these findings for theory development and future research, as well as managerial implications. This case study contributes to a wider theoretical understanding of Chinese POEs' internationalisation behaviours.</p>

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

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.