International Entrepreneurship as a Dynamic Adaptive System: Towards a Grounded Theory

Abstract

This paper is based on a primary assumption: That the internationalizing smaller firms are dif- ferent from large international firms, such as multinational enterprises (MNEs); and therefore, the process of internationalization and growth of smaller firms may not follow processes stipulated in the extant theories of MNEs and international business processes (IBPs). Even the primary orientations and theoretical constructs used in IBP and the theory of multinationals are different from those in entrepreneurship: While the former focuses on the institution of the "firm" the latter concentres on the "entrepreneur" as internationalizing entities. This paper will suggest a theoretical framework capable of integrating this prevailing fragmentation. The framework is based on the tenets of dynamic open complex adaptive system (DOCAS), compris- ing three layers, reflecting entrepreneurs (or entrepreneurial teams), firms and markets to reflect their own dynamics as well as the inter-relations and interactions of entities within and across layers within the frame- work. After a brief review of the basic characteristics of a simple DOCAS and the major attributes of entities populating each layer in the framework, the interdependencies and interactions within and across layers are highlighted. This framework presents a coherent and comprehensive structure capable of housing the next six papers contained in this issue. They are reviewed and highlighted from the perspective of the proposed framework. These papers support the proposed framework substantively. The proposed grounded frame- work appears to lay the foundation for the research and theory necessary for enhancing our understanding of IBP and internationalization in smaller firms. Conclusion and implications of the papers are presented at the end.