I Stick with What I Know: The Role of Experience in the New Venture Internationalization Process

Abstract

Drawing on the theory of expertise this paper develops a model how entrepreneurs’ prior experiences influence new venture internationalization. The model proposes that founding experience and domestic work experience have different effects on venture age at internationalization, and on the age at – degree of internationalization relationship. Data on 106 internationalized new ventures revealed that entrepreneurs’ domestic work experience postponed internationalization and negatively impacted venture growth in international markets after entry. Contrary to expectations, founding experience also delayed international entry. These findings help understand how more and less domain-specific types of experience shape entrepreneurs’ entry decisions and exploitation of international opportunities.