International Entrepreneurship Literature Research Articles

Entrepreneurial alertness, international performance, and the role of effectuation in SME internationalization

ABSTRACT By shedding light on the often-overlooked early stages of opportunity development initiated by entrepreneurial alertness and its performance outcomes in an international setting, this study examines the interplay between alertness and two decision-making logics, effectual flexibility and causal prediction, in the context of small- and medium-sized enterprises (SMEs) internationalization. Leveraging structural equation modeling on a data set of 680 manufacturing SMEs across five countries, this study uncovers distinct effects: effectual flexibility moderates, while causal prediction mediates, the positive relationship between alertness and the international performance of SMEs. The research makes noteworthy contributions to international entrepreneurship literature by linking alertness with performance in the international context and disentangling the nuanced pathways through which SMEs can achieve success in the global arena.

Entrepreneurial alertness: A mechanism for innovation and growth in an emerging economy

AbstractIn this study, we draw from the conservation of resources theory to develop and test a model on the processes through which resiliency influences two entrepreneurial strategies, product differentiation and international diversification. Results from 226 entrepreneurs in Pakistan demonstrate that psychological resiliency predicts product diversification and international diversification through entrepreneurial alertness. Also, we find that institutional voids moderate the relationship between entrepreneurial alertness, product diversification, and international diversification. Our theorizing advances entrepreneurial alertness as a lynchpin variable for operationalizing founders’ characteristics to affect innovation and expansion efforts. Furthermore, by demonstrating the complementary effect of institutional voids on the entrepreneurial alertness–product differentiation and entrepreneurial alertness–international diversification relationships, we draw the attention of entrepreneurs to the brighter side of institutional voids. This is an important addition to international entrepreneurship literature and a critical contextual contribution to entrepreneurial alertness theory development because limited attention is devoted to examining how resiliency promotes entrepreneurial alertness for facilitating product differentiation and international diversification strategies in the Asia Pacific region.

Crossing the chasm: The role of dynamic managerial capabilities in the turning point of early internationalizing firms

The International Entrepreneurship literature has overlooked the "turning point" in early internationalizing firms (EIF), i.e. the period during which they transition from international entry to post-entry stages. Leveraging Dynamic Managerial Capabilities, I examine PATI, a successful EIF undergoing this transition. Throughout this article, I demonstrate how the characteristics of EIF managers and their dynamic managerial capabilities interact with the organization's dynamic capabilities. I then emphasize how two sets of dynamic managerial capabilities are crucial for EIFs at their turning point: one linked to R&D and engineering, and the other to support and sales. Notably, the latter involves global dynamic managerial capabilities. I also initiate a discussion regarding the potential diversity of dynamic managerial capabilities related to other firms’ activities. Finally, I show how, after the turning point, founders abandon their status as actors in internationalization to concentrate solely on their decision-makers’ role.

ІНТЕРНАЦІОНАЛІЗАЦІЯ МАЛИХ ВЕНЧУРНИХ КОМПАНІЙ: 30 РОКІВ ДОСЛІДЖЕНЬ

The article highlights the evolution of research of small venture companies from the inception of international business studies in the 1960s to the present time with an emphasis on 1993-2024 as a period of isolated research on small firms. It provides an overview of the commonly used terminology in the field of international entrepreneurship and analyses the state of research on the topic in Ukrainian literature, which leads to identification of a research gap – internationalisation of small and medium-sized enterprises appears to fall out of the scope of international entrepreneurship and international business research. Based on the existing empirical research in the field, the article highlights the need for isolated studies on small venture enterprises and addresses this research gap in Ukrainian literature by providing a systematic review of internationalisation literature aimed at small venture companies as opposed to the multinational companies. A systematic review of the literature establishes a link between early research on international business and the current literature on international entrepreneurship, while providing the overview of international business theories that were adapted for the use in international entrepreneurship. It outlines a trending research direction in international entrepreneurship literature – international entrepreneurial opportunities. It discusses the characteristics of the entrepreneur, company and environment that form the basis of international opportunity. The article defines the place of international marketing and strategic management in the system of small business internationalization research and outlines promising future research directions recognised in international scientific literature. It follows the developments of G. Knight and S. T. Cavusgil in discussing integrationresponsiveness paradigm – originating from international business – and effectuation theory – coming from strategic management – as future research directions. Finally, it provides arguments for development of internationalisation of small venture companies research in Ukrainian literature.

Transition from entrepreneurship education to entrepreneurial intention: A cross-cultural effect

Through a cross-cultural examination, this study aims to analyse a move from the field of entrepreneurship education (EE) to entrepreneurial intention (EI). Specifically, we carried out mediation (perceived behavioural control (PBC) and attitude towards entrepreneurship (ATE)) and moderation (gender and country) analysis. The study surveyed 546 Polish and Spanish university students and used a multi-group analysis to test the model across groups. The results reveal that attitude and PBC partially mediate the effect of EE on EI. Moreover, the results show that the model is consistent in both countries. The study contributes to the comparative international entrepreneurship literature on how the theory of planned behaviour (TPB) applies in different contexts and implications it has for this field of study.

Competence and enterprise of management as drivers of early foreign listing of medium-sized emerging market multinationals (EMNEs) from Africa

EMNEs from Africa are missing in global places and spaces, and Africapitalism is also meagrely represented within the capillaries of international investments, relative to the opportunities offered by globalisation and Africa’s rich natural resource endowment. Using the Penrosian MNE growth theory, we investigate how African firms' managerial competence and entrepreneurial behaviours can be enhanced by engaging foreign executive directors during pre, early and post-internationalisation. We conduct our analysis by using data from 157 companies domiciled in 17 African countries. Our results show that whilst access to liquidity, foreign managerial know-how, and experience are key drivers of early foreign listing of African EMNEs, these factors have less effect on corporate outcomes during the 3rd and 5th year without the moderating effect of foreign executive directors. We contribute to the international business and international entrepreneurship literature by showing that African EMNEs can succeed in global spaces if they leverage the expertise of foreign executive directors as they bring idiosyncratic industry and market knowledge during early internationalisation. EMNEs intending to internationalise must use a polycentric governing board structure to reflect the intended destination country. Our results imply that early listing on the international stock markets is among the key strategies latecomers use to enter a global game they are just learning to play.

Institutional support for entrepreneurship and new venture internationalization: Evidence from small firms in Ghana

Drawing on institutional theory, we propose that emerging market new venture internationalization is impacted by the entrepreneur-institution fit (the compatibility between home institutional support for entrepreneurship, entrepreneurial alertness, and political ties). Using two sets of primary data from 203 and 194 Ghanaian new ventures respectively, we tested our three-way interaction model. Our results show home country institutional support for entrepreneurship has a positive relationship with new venture internationalization. This relationship appears the strongest for founders with higher levels of entrepreneurial alertness and weaker political ties. This paper enriches the literature of international entrepreneurship and institutional theory by (1) introducing an overlooked entrepreneurship factor, entrepreneurial alertness, to the international entrepreneurship literature; (2) context-theorizing the construct of emerging market new venture internationalization; and (3) drawing upon the context-relevant formal institution (institutional profile for entrepreneurship) and connecting it with the informal institution (political ties) to investigate their impacts on new venture internationalization.

Open strategizing and accelerated internationalization process in different contexts

PurposeDue to the changes in organizational, social, cultural and technological factors, companies from different contexts are shifting towards open forms of strategy-making with more widened inclusion of internal and external actors and greater transparency regarding their strategic issues, including their internationalization processes. The purpose of this paper is to understand how Open Strategizing occurs in the accelerated process of internationalization considering different contexts.Design/methodology/approachThe authors conducted a qualitative comparative case study in Brazilian and English technology-based small and medium-sized enterprises (SMEs) which rapidly internationalized. Furthermore, data was collected through semi-structured interviews, observations and documental analysis.FindingsThe authors suggest that openness contributes to the accelerated process of internationalization. Additionally, the authors show that the home-country and the national cultural contexts affect openness. The authors also disclose openness as crucial and inherent to the accelerated process of internationalization, while context is relevant but not determinant in the Open Strategizing.Originality/valueThe authors contribute to Open Strategy (OS) literature by presenting how Open Strategizing unfolds daily during the internationalization process and by evidencing the role of home-country and national cultural contexts in the configuration and dynamics of Open Strategizing. The authors also contribute to the international entrepreneurship (IE) literature by advancing the understanding of the strategies and drivers adopted by technology-based SMEs internationalizing in an accelerated way.

Entrepreneurial alertness and business model innovation in dynamic markets: international performance implications for SMEs

A significant yet rarely probed question in the international entrepreneurship literature is to what extent and when entrepreneurial alertness (EA) manifests into international performance for small and medium‐sized enterprises (SMEs). Using survey data from 214 SMEs in the United Arab Emirates, this study investigates the relationships between EA, business model innovation (BMI), domestic market dynamism and internationalisation scope of SMEs. The study finds that BMI (i.e., entrepreneurial action) significantly mediates the relationship between EA (i.e., entrepreneurial capability) and SMEs' internationalisation scope (i.e., international performance). Furthermore, when domestic market dynamism is high, the effect of BMI on internationalisation scope is strengthened. These findings provide theoretical and practical implications for international entrepreneurship research in the SME context.

The sharing economy and collaborative consumption: Strategic issues and global entrepreneurial opportunities

The purpose of this paper is to analyze and discuss the topics of sharing economy and collaborative consumption (CC) within the domains of global entrepreneurial opportunities, strategic issues, and emerging online businesses. Both topics remain immensely rich and intertwined because of their interdisciplinary perspectives and multifaceted issues. The sharing economy and CC-based digital platforms clearly support and complement today’s business models, corporate expansion, and entrepreneurial growth. The sharing economy and CC models continue to grow yet can be disruptive in international entrepreneurship. The paper investigates the sharing economy as well as CC in ten sectors (73 firms) from the perspective of “commercial sharing systems” (Lamberton and Rose 2012, p. 109). Findings of the paper reveal that the two topics distinctly remain interconnected when dealing with their business models, entrepreneurial initiatives, and consumers in global markets. The work systematically lays the foundation for future research in the international entrepreneurship literature and its related areas. Companies that pursue the areas of sharing-based systems tend to be inherently innovative and venturesome in their business models and digital platforms. The paper also provides a research agenda and managerial implications of this timely discussion that continues to grow in international entrepreneurship.

Impacts of managerial capabilities on perceived international performance: mediating role of international opportunity-driven behavior

PurposeThis study aims to examine the relationship between managerial capabilities, international opportunity-driven behavior and perceived international performance at an individual-level analysis.Design/methodology/approachA conceptual model is tested using data collected from 190 managers of international ventures from Colombia, an emerging economy in Latin America. Partial least squares structural equation modeling is used to analyze the data.FindingsThe findings reveal that international opportunity-driven behavior of individuals becomes a mediating managerial capability to achieve international performance under evolving and changing conditions. The results show three managerial capabilities are key drivers when pursuing international opportunities. Different from what the internationalization research claims, this study reveals that some hypotheses about the relationship between some managerial capabilities and perceived international performance are not confirmed in the context of an emerging economy.Research limitations/implicationsThe specific limitations of the study open avenues for future research. However, the authors propose five research avenues to improve the generalizability of the results.Practical implicationsThis study provides managers, entrepreneurs and policymakers suggestions. Thus, the authors offer a repertoire of managerial capabilities that emerging market entrepreneurs should develop to pursue opportunities across borders and achieve international performance.Social implicationsManagers should develop social capital capabilities by establishing networks with other relevant organizations and business partners, both in the domestic and international markets, to leverage enough knowledge that helps them to overcome the liability of newness and foreignness.Originality/valueThis study contributes to the knowledge by examining international opportunity-driven behavior at an individual-level analysis and bringing emerging economies as new contexts that may enrich the international business and international entrepreneurship literature.

Dynamic managerial capability portfolios in early internationalising firms

It is acknowledged that dynamic capabilities can underlie internationalisation of firms, yet extant research has tended to examine the role of capabilities in international entrepreneurship in separate studies, neglecting that international enterprises tend to develop different bundles or portfolios of capabilities that may have differing impacts on their internationalisation. Applying the concept of dynamic managerial capabilities, this study illustrates how different capability portfolios of entrepreneurial decision-making and network capabilities explain early internationalisation of small- and medium-sized enterprises (SMEs). Employing a machine learning method through artificial neural network (ANN) analysis, the findings show how early internationalisation is predicted by a portfolio of different dynamic managerial capabilities. This study thus contributes to the international entrepreneurship literature by outlining the capability portfolios necessary for early internationalisation and proposing a taxonomy for capability portfolios for early and late internationalising firms, by clarifying the role of dynamic managerial capabilities in early and successful entrepreneurial internationalisation and by introducing the ANN methodology as a useful tool in the research corpus of the international entrepreneurship domain.

Incentive for Speed: an Incentive-Based View of Post-Entry Internationalization Speed of New Venture

While the initial international expansion of new ventures has received substantial research interest in extant international entrepreneurship research, our understanding of the pace of international expansion of new ventures after they already expand abroad – the post-entry internationalization speed (PEIS) – is limited, despite its theoretical and practical importance. For new ventures that have already expanded abroad, or international new ventures (INVs), PEIS acts as a double-edged sword that can bring tremendous upside potential and at the same time substantial downside risk for INVs. Using agency arguments, this study theorizes that stock options given to the CEO and outside directors of INVs insulate these individuals from downside risk but still expose them to tremendous upside potential associated with faster PEIS. Empirical analyses from the population of publicly held U.S. INVs over the 2005-16 period show that while INVs expand faster abroad when their CEO or outside directors are compensated with more stock options, PEIS becomes slower when both the CEO and outside directors are compensated with more stock options. By developing an incentive-based view of PEIS of INVs, this study departs from and complements previous studies in the international entrepreneurship literature that have predominantly focused on the role of firm-level resources or capabilities as a driver of internationalization speed of INVs.

Scaling Up Business Models Across Foreign Markets

This paper highlights the importance of business models to the international expansion of new ventures. Drawn upon up the activity-system perspective of business model and international entrepreneurship literature, we theorize that business model scalability affects the likelihood of foreign market entries. New ventures need to reconfigure business models to overcome foreign entry barriers. However, only the peripheral activities instead of the core activities of highly scalable business models need to be changed. On the contrary, less scalable business models need to modify core activities and reexamine the inter-complementarity within the activity systems, the strategic fit between activity systems and the environment, and the governance of the boundary-spanning activities with stakeholders. Therefore, new ventures with highly scalable business models are more likely to enter foreign markets. We also explore the boundary conditions and find that information infrastructure of the host country and venture capital support strengthen the relationship between business model scalability and foreign market entry likelihood, while venture age weakens it.

Start-up Context, Social Ties, and Growth Strategies of Second-Generation Immigrant Entrepreneurs

Second generation immigrant entrepreneurs (SGIEs) in developed economies have contributed to the emergence of new areas of business activity. An understanding of their growth strategies can shed light on the role of individual immigrants in the founding of potentially global firms competing with large multinational enterprises. Based on eleven case studies of SGIEs of Indian origin in the UK, our findings reveal that SGIEs are heterogeneous in their growth strategies contingent on their start-up context and use of social ties. Founder SGIEs combining non-co-ethnic ties with non-family co-ethnic ties geographically expand outward to other foreign countries, including their country of origin. In contrast, successor SGIEs combining non-co-ethnic ties with family ties expand their product/ service scope within the UK; they exploit foreign market links, including their country of origin, to source supplies or customers through inward internationalization. These findings contribute to the immigrant entrepreneurship, international business and international entrepreneurship literatures.

James Bond Chief Executive Officer and Firm Internationalization:

By integrating upper echelon perspective (UEP), dynamic capability view (DCV) and international entrepreneurship (IE) literature, a conceptual model is developed to illustrate how the interaction between Chief Executive Officer (CEO) dark personality traits (narcissism, psychopathy, Machiavellianism) and firm-level factors including entrepreneurial orientation (EO), opportunity exploration and opportunity exploitation may influence the firm internationalization. The interaction between these variables can stimulate firm internationalization activities, potentially resulting in following an early and accelerated internationalization (Born-Global) rather than traditional internationalization (e.g., Uppsala model) by firms run by CEOs high in dark personality traits.

Contextualizing Necessity Entrepreneurship: A Cross-National, Comparative Perspective

While the comparative international entrepreneurship literature has explored the effects of national context on the discovery, evaluation, and exploitation of market opportunities, less comparative work has examined the national characteristics that drive the intensity of needs-based pushes into self-employment. To fill this gap, we apply a needs-based perspective to explain the wide cross-national diversity in levels of own-account self-employment across 167 country cases. Our results provide evidence that a needs-based lens offers an important framework to not only compare the conditions of self-employment between developing and developed country settings, but also to identify significant variation within the developing world itself. By splitting our global sample in half by income level, we find that the institutional-based causal conditions that explain cross-national variation in the scale of own-account self-employment are only recognized if the world’s poorest countries are included in comparative analysis. In the discussion section, we address the issue of country-level selective sampling bias to advance a more inclusive international entrepreneurship research agenda that includes the analysis of needs, as well as opportunities, when comparing national contexts.

Staying in or stepping out? Growth strategies of second-generation immigrant entrepreneurs

Second generation immigrant entrepreneurs (SGIEs) in developed economies have contributed to the emergence of new areas of business activity, especially in information technology, business services, and creative industries. An understanding of their growth strategies can shed light on the role of individual immigrants in the founding of potentially global firms competing with large multinational enterprises. Based on eleven case studies of SGIEs of Indian origin in the UK, our findings reveal that SGIEs are heterogeneous in their growth strategies contingent on their a) founding or succession context, and b) use of social ties. Founder SGIEs combining non-co-ethnic ties with non-family co-ethnic ties geographically expand outward to other foreign countries, including their country of origin. In contrast, successor SGIEs combining non-co-ethnic ties with family ties expand their product/ service scope within the UK; they exploit foreign market links, including their country of origin, to source supplies or customers through inward internationalization. These findings contribute to the immigrant entrepreneurship, international business and international entrepreneurship literatures.

Performance implications of export assistance: the mediating role of export entrepreneurship

PurposeAlthough both institutional export assistance and entrepreneurial orientation (EO) contribute separately and positively to export performance, the interplay between them has received little attention. This study examines the role of international EO in deriving performance benefits from governmental and nongovernmental export assistance.Design/methodology/approachIn this longitudinal study, two surveys were administered at two different times: In 2011, 705 Bangladeshi apparel exporters were surveyed, and in 2019, a subsequent survey of 198 firms in multiple industries was conducted. The aim of the surveys was to assess the relationships between governmental and nongovernmental assistance, EO and export performance.FindingsThe results of the first survey show that, while nongovernmental assistance influences performance directly and via EO, governmental assistance has only direct effects. Furthermore, the negative influence of government assistance on EO reduces the total effects and renders them nonsignificant. The results of the second survey demonstrate that government EPPs have both direct and indirect positive and significant effects on market performance, indicating a partial mediation, whereas quasi-governmental assistance has positive and significant direct effects as well as negative but nonsignificant indirect effects. Nongovernmental EPPs have both direct and indirect significant effects on international performance, indicating a partial mediation.Research limitations/implicationsThe study has important implications for researchers studying export assistance and its impact on firm performance. Instead of adopting a parochial view of government assistance, this study categorizes such assistance into three types – government, quasi-government and nongovernment. Furthermore, this study bridges the export assistance and international entrepreneurship literature by including EO.Practical implicationsEntrepreneurs must emphasize the use of government assistance in order to enhance export performance. However, to promote both entrepreneurship and performance, they must emphasize nongovernment assistance. Exporters should also capitalize on the assistance extended by various quasi-governmental agencies to bolster export performance.Originality/valueGiven the performance advantage of export assistance, this study highlights the contribution of the private sector in promoting export entrepreneurship while shedding light on the pernicious role of (quasi-)governmental assistance in export entrepreneurship.

International growth of SMEs: exploring the effects of adaptive selling, institutional knowledge, innovativeness and opportunity recognition

Purpose This study aims to investigate the effects of adaptive selling, as a high-level individual-level marketing capability, institutional knowledge, international opportunity recognition and general innovation-orientation of managers on the international growth of Iranian small- and medium-sized enterprises. Also, drawing on strands of research into early internationalisation firms, this study attempts to determine the impact of precocity and speed of internationalisation as a moderator of the relationship of antecedents to international growth. Design/methodology/approach The research is based on answers of 748 managers from 186 firms to a self-reporting questionnaire. The partial least squares (PLS) structural equation modelling approach was used to assess the measurement and construct the model. Furthermore, the study used a PLS multigroup design with four groups of firms to compare the paths with regard to precocity and speed of internationalisation. Findings Significant associations for seven out of eight hypotheses were found. The international opportunity recognition was found to mediate the relationship between institutional knowledge and adaptive selling-innovativeness. Additionally, the results of the comparisons found important implications to early and fast internationalisation. Originality/value This study shows that international growth stems from individual innovation orientation. It sheds light on the importance of institutional knowledge, adaptive selling and opportunity recognition for early and pacey internationalisation. The findings contribute to the international entrepreneurship literature based on both the early and gradual internationalisation.