Internationalization of New Technology Ventures: Organizational Challenges for Innovation Management and Growth

Abstract

India’s economy is considered to be among the most vibrant economies of the world in the twenty-first century. One of the pillars of its growth has been the information technology (IT) industry, which contributes 8.1% of the country’s GDP. The IT industry in India has grown at an average rate of 13.1% between 2008 and 2014, and such a rise augurs well for the development of innovative products and services. This growth has provided both sustainable infrastructure and a competitive environment for the development of entrepreneurship. With the expansion of the entrepreneurial ecosystem, there has been a rise in the number of venture capital (VC) firms and foreign investors. However, a considerable number of innovative IT-based new ventures have either been closed down or acquired by other investors. There are very few ventures which have expanded globally and have sustained innovativeness of their services and products over time. Entrepreneurial failure at the international level has been examined in the literature, and one of the major reasons identified for such phenomenon is the lack of skills among the managers or founders required to manage the innovations and growth. When an organization is expanding its operations and markets globally, it requires a holistic development of all the factors affecting the innovativeness of both the organization and its people. This study explores the organizational challenges faced by technology-based new ventures in the management of innovation and organizational growth during their phase of scaling-up toward becoming an international organization at a global level and their relationship with the development of organizational leadership, structure, culture, and change. The study also discusses the ‘Collaborative Internationalization’ model for the internationalizing technology ventures and discusses various organizational development-related aspects.