A Multi-Level Study of Entrepreneurial Characteristics, IPR, and the Degree of Internationalization

Abstract

An emerging topic in strategic entrepreneurial research is how institutional influences impact on entrepreneurial internationalization behavior. This paper sets out to undertake a multilevel study regarding the impact of home country IPR on the relationships among entrepreneurial self-efficacy, entrepreneurial opportunity perception, risk tolerance, and the degree of internationalization. Through a combination of the dynamic capability perspective and entrepreneurial bricolage theory, we propose a model that underpins the role of home country institutional influence, in particular, IPR during the internationalization of new ventures. Using a sample of 91 countries, we empirically test the model via multi-level logistic regression analysis controlling micro as well as macro variables such as personal education level, gender, household income, purchasing power per capita, and GDP growth rate. Our findings suggest that higher IPR protection mechanism in the home country will strengthen the positive relationships between entrepreneurial self-efficacy and the degree of internationalization, entrepreneurial risk tolerance and the degree of internationalization. However, although the findings support the positive relationship between entrepreneurial opportunity perception and the degree of internationalization, the moderating effect of IPR protection in the home country is not supported for such relationship. Our study contributes to the literature by extending entrepreneurial bricolage theory and dynamic capability approach into international entrepreneurship research. We advance the understanding of how the protection of intellectual property in home country influences the internationalization efforts into new ventures taking consideration of the personal-level characteristics of entrepreneurs.