International opportunity identification in the internationalisation of the firm

Abstract

We study the internationalisation efforts of entrepreneurs who intentionally orchestrate opportunity identification activity in the internationalisation process. The internationalisation of the firm is a process of entering new international markets that becomes possible only after an individual within the firm has identified opportunities in those markets. Using case evidence, we apply the theory of planned behaviour from social psychology to explain why some individuals identify international opportunities and overcome the liability of foreignness and the liability of outsidership inherent in a new international market entry. We offer a behavioural model of international opportunity identification, and we outline factors that determine an entrepreneur's perception of international opportunity identification to be a feasible and desirable activity.