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.

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.

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.

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.

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.

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.

scholarly journals Exploring the Role of Industry Structure in New Venture Internationalization

2007 ◽  
Vol 31 (4) ◽  
pp. 517-542 ◽  
Author(s):  
Stephanie A. Fernhaber ◽  
Patricia P. McDougall ◽  
Benjamin M. Oviatt
Keyword(s):  
International Business ◽  
New Ventures ◽  
Theoretical Framework ◽  
Industry Structure ◽  
New Venture ◽  
International New Ventures ◽  
Industrial Economics ◽  
New Venture Internationalization

While we have gained considerable knowledge since the late 1980s regarding the phenomena of international new ventures, less is known about the influence of industry structure on these ventures. In the present paper, we draw on literature from industrial economics, international business and entrepreneurship to identify industry structure variables that fit within the theoretical framework of international new ventures. We then offer propositions as to how the identified industry structure variables individually and jointly influence the likelihood of new venture internationalization.

The Role of Entrepreneurs’ Empathy in New Venture Performance: The Mediating Effects of Entrepreneurial Orientation

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Wenhong Zhao ◽  
Siyao Lyu ◽  
Tomoki Sekiguchi
Keyword(s):  
Perspective Taking ◽  
Entrepreneurial Orientation ◽  
New Ventures ◽  
Empathic Concern ◽  
New Venture ◽  
Curvilinear Relationship ◽  
Mediating Effects ◽  
Firm Level ◽  
Venture Performance ◽  
New Venture Performance

Abstract Previous research has found that entrepreneurs’ empathy promotes personal opportunity identification. However, the role that entrepreneurs’ empathy plays at the firm level in new ventures is still unclear. This study explores this question by investigating how perspective taking and empathic concern, which respectively represent the cognitive and affective component of entrepreneurs’ empathy, influence new venture performance with the mediating effects of entrepreneurial orientation (EO). Based on an empirical study with 341 new ventures, this research finds a positive relationship between perspective taking and new venture performance and a curvilinear relationship between empathic concern and new venture performance. In addition, both of these relationships are mediated by EO. This study sheds light on distinct impacts of the entrepreneur’s perspective taking and empathic concern at the firm level, enriches the antecedents of EO from the cognitive and affective factors of the entrepreneur, and extends the implications of the entrepreneur’s altruistic dispositions in commercial start-ups.

scholarly journals Funding acquisition drivers for new venture firms: Diminishing value of human capital signals in early rounds of funding

2019 ◽  
Vol 17 (1) ◽  
pp. 78-94 ◽  
Author(s):  
Snehal Shetty ◽  
Ranjany Sundaram
Keyword(s):  
Human Capital ◽  
New Ventures ◽  
Human Capital Theory ◽  
New Venture ◽  
Educational Institutions ◽  
Capital Theory ◽  
Multiple Factors ◽  
The World ◽  
Empirical Demonstration ◽  
Venture Firms

Multiple factors such as human capital, amount raised in the first round, innovation etc. have an impact on the funding prospect of new ventures. This paper explored the influencing factors that drive multiple rounds of funding for new venture firms and provided a much broader perspective of funding drivers during the early stages of the new venture firm. Using signalling theory and human capital theory, this paper analyzed signals that influence the acquisition of funds in the first round and whether those signals persisted for the second and third rounds of funding when information asymmetries between the investors and new venture firms reduce. This study disentangled the signalling effects of the human capital factors across three funding rounds and proved the diminishing value of signals across each subsequent round of funding. Finding showed that the signal effect from premier institution education was the only human capital signal that persisted across each round of funding, while other signals did not persist beyond the first round of funding. In addition, new venture firms with founders educated from premier educational institutions were able to attract more investors and close more funding rounds. This study also proved that the amount raised in the first round of funding positively impacted the amounts raised in the second and third rounds stressing its importance for new venture firms. Empirical demonstration of the propositions was done with 156 new venture firms in India, the fastest growing and third largest startup ecosystem in the world.

The Curvilinear Relationship Between Collective Team Identification and New Venture Performance: The Moderating Effect of Environmental Uncertainty

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Hao Ji ◽  
Wencang Zhou
Keyword(s):  
New Ventures ◽  
Environmental Uncertainty ◽  
Internet Technology ◽  
New Venture ◽  
Curvilinear Relationship ◽  
Team Identification ◽  
Venture Performance ◽  
High Level ◽  
The Relationship ◽  
New Venture Performance

Abstract Many new ventures are founded and developed by teams rather than solo entrepreneurs. Therefore, the extent to which entrepreneurs identify with their teams is likely to have an important impact on the process and outcome of new venture creation in new venture teams. However, most of the relevant studies focus on entrepreneurs’ individual identity, and the identity at the team level has been overlooked. This study seeks to fill this gap by exploring the effect of collective team identification on new venture performance. The relationship between collective team identification and new venture performance was examined using a sample of 54 new venture teams in Internet Technology (IT) industry. The results show that the relationship between collective team identification and new venture performance is inverted U-shaped. Moreover, environmental uncertainty may moderate this curvilinear effect, such that this inverted U-shaped relationship is more salient at a low level of environmental uncertainty rather than at a high level of environmental uncertainty.

The role of organisational culture in the internationalisation of new ventures

2018 ◽  
Vol 35 (5) ◽  
pp. 806-832 ◽  
Author(s):  
Nishant Kumar ◽  
Dharam Deo Sharma
Keyword(s):  
New Ventures ◽  
Critical Role ◽  
Positive Influence ◽  
Organisational Culture ◽  
Superior Performance ◽  
International New Ventures ◽  
Continuous Learning ◽  
Content Type ◽  
Process Innovations

Purpose The purpose of this paper is to explore how organisational culture affects the internationalisation proclivity of international new ventures (INVs). Design/methodology/approach In this paper, a resource advantage (R-A) framework is adopted to examine how organisational culture can be a resource for INVs to leverage efficiently and/or effectively in order to make up for their challenges in internationalisation and create value for their international customers. In doing so, this study makes use of examples of five INVs from India, which have successfully achieved international business prowess and superior performance immediately after their foundation. Findings The findings reveal that an organisational culture including continuous learning, creativity and innovation, collaboration and sharing, and customer-centricity as traits have a positive influence on INV internationalisation proclivity. Most importantly, fostering a culture of collaboration and sharing can help INVs address resource limitations and augment opportunity discovery in the international market. Furthermore, INVs can benefit more from the “learning advantages of newness” by nurturing continuous learning as part of their culture. Research limitations/implications A key limitation of this study is that all the firms selected here are from a single country, India, and it may have effects on the way firms leverage these cultural traits. Practical implications Founders of INVs should develop organisational arrangements that encourage openness, creativity, and allows employees to contribute freely and fearlessly through new ideas, process innovations, and so on, and firms should recognise such contributions regularly. INVs can adopt policies and develop mechanisms that encourage employees to share knowledge and resources freely with others in the organisation. Social implications Growth of INVs is closely linked to job creation and economic progress. Policy makers in emerging economies can benefit from this study by developing infrastructure and creating social conditions that support the survival and growth of INVs. Adopting the findings of this study could possibly help INVs succeed in international markets and avoid failures, and thus save societal resources. Originality/value The paper highlights the critical role of organisational culture in INVs’ internationalisation thrust. The paper develops testable propositions that delineate both the main effects as well as the other effects of organisational culture on INV internationalisation.

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