International Entrepreneurship Literature Research Articles

The role of networks in early internationalizing firms: A systematic review and future research agenda

Despite considerable research, the international entrepreneurship (IE) literature lacks systematic knowledge of how early internationalizers use networks to overcome their resource deficits in different phases of internationalization. Further, a systematic guide for future research to expand the current knowledge of early internationalizers' network dynamics throughout their internationalization process is missing to date. To fill these voids, the present paper conducts a systematic review of sixty-one journal articles on the role of networks in the cross-border expansion of early internationalizing companies. We contribute to existing research by taking stock of the current state of knowledge regarding the role of networks in early internationalizing firms in different faces of internationalization. We also use the findings obtained from our review as a platform to systematically identify opportunities for future research regarding early internationalizers’ network dynamics throughout the internationalization process.

SME international innovation and strategic adaptiveness

PurposeThe purpose of this paper is to examine the role of small- and medium-sized enterprises’ (SMEs) domestic network structural attributes on their ex post internationalisation strategic innovation and adaptiveness in the host country.Design/methodology/approachThe model fit of SME domestic network structural attributes and their ex post international performance was examined using structural equation modelling on data gathered from a sample of 263 SMEs from Croatia, a transition and emerging economy. Hierarchical regression analysis was further performed to test both the direct and moderating effects.FindingsThe study revealed that domestic network informality (DNF) moderates the link between SME domestic network centrality and their international innovation. Similarly, the findings show that DNF strengthens the negative association between domestic network density and SME international innovation and strategic adaptiveness. Moreover, the study did not find any direct impact of these domestic networks’ structural attributes (density and centrality) on SME international innovation and strategic adaptiveness.Originality/valueScholars have emphasised the importance and urgency for further research attention on the role of networks on SMEs’ internationalisation activities from emerging economies. This study responds to this call, and to the knowledge of the authors, is the first to examine the role of domestic network attributes on SME international performance in emerging economies. The findings provide new insightful contributions to the social network perspective and the international entrepreneurship literatures.

Export promotion programmes and export performance

PurposeMany nations now engage in economic promotion of their countries in foreign countries. One major aspect of this activity is export promotions. This paper aims to understand the relationship between export promotional activity participation and export performance by Ghanaian manufacturing firms.Design/methodology/approachThe list of manufacturing exporters was obtained from the Ghana Export Promotion Authority, and the convenience and snowballing approach was used to reach and administer research instrument. The relationship between export promotion and performance was estimated using a multiple regression.FindingsThe results of this study indicate that exporters should implement specific export promotion programmes if they want to enhance export performance and become successful. The findings of this study show that the programmes that have a strong positive relationship with export performance are trade fairs, foreign offices and tax and financial incentives.Originality/valueThe results of this study contribute to the international entrepreneurship literature in several ways. First, findings from this study contribute to the limited literature on exports in developing countries such as Ghana. Again, the study framework provides assistance to assess and monitor emerging trends in export promotion strategies. Also, export promotion, as a whole, provides a framework in which firms formulate strategies, allocates resources and seeks opportunities in a coordinated way. Finally, in the international marketplace, firms need to maintain their competitive edge, and it is important to operate efficiently and effectively using an appropriate export promotional strategy.

The relationship between access to finance and growth of SMEs in developing economies

PurposeThe purpose of this paper is to establish the moderating effect of financial literacy in the relationship between access to finance and growth of small and medium enterprises (SMEs) in developing economies. Thus, this study seeks to establish whether financial literacy moderates the relationship between access to finance and growth of SMEs in a developing economy like Uganda.Design/methodology/approachCross-sectional research design was used in the study and data were collected from 169 SMEs located in Jinja and Iganga central markets. ModGraph (excel programme) was used to test for the moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies.FindingsThe findings reveal a positive and significant moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies. In addition, financial literacy and access to finance also have significant and positive effects on growth of SMEs in developing economies.Research limitations/implicationsThe study collected data from only SMEs located in Uganda, and there is an opportunity to test this finding in other developing economies. Furthermore, the findings from the study are based on quantitative data collected through use of semi-structured questionnaires. Besides, the study was purely cross-sectional; hence, it ignores the characteristics of SMEs, which could be investigated using a longitudinal study design.Practical implicationsThe study highlights the importance of financial literacy in promoting access to finance, which is necessary for the growth of SMEs in developing economies. Owners of SMEs could attend financial literacy programmes provided by entrepreneurial skill development organizations to enable them to acquire financial knowledge and skills to make wise and better financial decisions and choices.Originality/valueThe study contributes to existing international entrepreneurship literature by indicating the moderating effect of financial literacy in the relationship between access to finance and growth of SMEs in developing economies. The study shows that for SMEs to access finance to grow there is a need for financial literacy that promotes effective and efficient use of loans/credits. SMEs in developing economies need financial literacy, which helps them make wise financial decisions and choices before accessing financial services like loans.

The role of management accounting in international entrepreneurship

PurposeThis paper aims to analyze the role of management accounting in international entrepreneurship. Its role, thus far, has been a neglected topic in research on accounting and international entrepreneurship, although some quantitative findings indicate the positive influence of management accounting on internationalization capability.Design/methodology/approachThis paper is based on a multiple case study of Austrian firms and draws on the resource-based view of the firm as well as effectuation/causation logics. Data for this study were collected via semi-structured interviews, press reports, company chronicles, organizational brochures and websites of the analyzed case firms.FindingsThe paper finds that management accounting may indeed serve as a key capability for international entrepreneurship. However, reliance on this capability seems to be contingent on the phase of international entrepreneurship and pathway and mode of internationalization.Research limitations/implicationsThe findings add to the accounting literature by showing that the phase as well as the mode and pathway of international entrepreneurship may serve as contingency factors for management accounting, which have been overlooked in the literature. At the same time, they also contribute to the international entrepreneurship literature by offering an initial view on the neglected capability of management accounting.Originality/valueThis is the first study to analyze the role of management accounting in international entrepreneurship.

Social Ties and Home Country Entry by Transnational Entrepreneurs

US-based Indian migrant entrepreneurs have made a significant contribution to the creation of new businesses, especially in the high-tech sector in Silicon Valley. Many of these entrepreneurs have taken Silicon Valley entrepreneurial models back to India, while continuing to maintain connections with the US. These transnational entrepreneurs, who leverage their knowledge of two countries and cultures to found cross-border ventures, are the focus of this paper. We draw on international entrepreneurship and migrant entrepreneurship literatures to understand the role of ethnic ties in India and the US, in influencing and enabling Indian entrepreneurs in Silicon Valley to found transnational ventures. Our findings contribute to the emerging theoretical and empirical literature on transnational entrepreneurship, as well as to the international entrepreneurship literature.

How Do Formal and Informal Economies Fuel International Entrepreneurship in R&D-intensive Firms?

R&D intensive firms have become increasingly important over the past a few decades, at least partly because of the value they create for stakeholders. The research dealing with such firms has begun to focus on their international strategies in that these firms demonstrate a different foreign investment trajectory compared to traditional firms. Built on the international entrepreneurship literature, our study extends the current understanding by showing that contrary to the research based on transaction cost logic, firms with high R&D intensity prefer to enter into a foreign country with lower equity ownership. This investment preference is also influenced by the formal and informal economies in the host countries. In particular, countries with a developed formal economy have a higher likelihood of hosting entry with greater equity control. In contrast, when the informal economy is prominent, the likelihood of entry is stronger but with a lower preference for high equity control. The findings demonstrate that the preference of entry mode for R&D intense firms has changed, catalyzed by the importance of innovation across industries to remain globally competitive. .

The antecedents of opportunity recognition in internationalized firms

The international entrepreneurship (IE) literature has proliferated over the past few decades, where researchers perceive internationalization as rapid and opportunity-driven. Despite the proliferation of research on IE, little is known about the extent of the relationship between the antecedents of opportunity recognition and IE. Hypotheses are formulated to test this relationship and a survey is administered to internationalized firms in South Africa. Following statistical analyses, results show that it is the antecedent of organizational learning which is positively related to opportunity recognition. These findings lead to recommendations in terms of how a combination of different learning and knowledge capabilities can be leveraged by entrepreneurs to increase opportunity recognition in internationalized firms.

Governance structure and internationalization of family-controlled firms: The mediating role of international entrepreneurial orientation

Stemming from resource dependence theory this article investigates the mediating role of international entrepreneurial orientation on the relationship between the involvement of non-family members in the firms' governance structure and both pace of internationalization and international performance of family firms. Relying on a sample of 113 German family firms, the theoretical model proposed in the study is tested via structural equation modeling techniques. Our findings suggest that a high involvement of non-family members in governance structure has a positive impact on family firms' pace of internationalization, and that this relationship is mediated by the international entrepreneurial orientation of the firm. The discussion section offers implications for family business and international entrepreneurship literature, as well as practical implications.

Early internationalization and the role of immigration in new venture survival

Immigrant-started new ventures face the liability of ethnicity because of their founders’ disadvantaged immigration status. It is extremely difficult for them to acquire human, social and financial capital and access market in founders’ country of residence to survive. This study empirically examines the survival of immigrant-started new ventures. We find that an early internationalization strategy could enhance those ventures’ survival and that immigration status moderates the effect of an early internationalization strategy on their survival. This study contributes to both immigrant and international entrepreneurship literature. Managerial and policy implications are also discussed.

SME internationalization: How does the opportunity-based international entrepreneurial culture matter?

We employ the opportunity-based international entrepreneurial culture (IEC) comprehensive notion that draws upon the opportunity-based view (OBV). The OBV supports the idea that entrepreneurs mold the organizational behavior and characteristics of their firms to pursue opportunities abroad. We set out to explore possible attitudinal differences as regards exploitation of opportunities within firms in each of three internationalization dimensions that are previously identified in the literature, notably time to internationalization, country market presence and international mode. We perform eighteen case studies on high-performing internationalized small and medium-sized enterprises (SMEs) in knowledge intensive sectors. The evidence refines the OBV as it manifests how three IEC characteristics (namely risk attitude, market orientation and networking propensity) matter for firms in the three internationalization dimensions. The study further adds to the international entrepreneurship literature that has until now myopically focused on international new ventures as if they were the sole opportunity-driven group of internationalized SMEs.

Internationalization and value orientation of entrepreneurial ventures—a Latin American perspective

Entrepreneurial ventures from Latin American emerging economies are underexplored on the current international entrepreneurship literature. This paper is aimed to contribute empirical evidence on entrepreneurial ventures from Latin American emerging economies and their internationalization and value orientation. Based on the 2009 Global Entrepreneurship Monitor data, we found that institutional voids on Latin American emerging economies were a double-edge sword: on one hand, inefficient and unregulated markets make ventures from Latin American emerging economies encounter the liability of their country of origin; on the other hand, less active governments and absence of influential NGOs alternatively trigger more social entrepreneurial opportunities, with some of them across the national border. Some entrepreneurs from Latin American emerging economies have been active in exploiting those international social opportunities. International social entrepreneurship can be regarded as an alternative solution to social problems which governments, NGOs, or for-profit ventures fail to tackle on Latin American emerging economies.

International knowledge brokerage and returnees’ entrepreneurial decisions

Based on the knowledge brokerage literature and the international entrepreneurship literature, we investigate whether returnees’ international knowledge transfer affects their entrepreneurial decisions and the extent to which this relationship is contingent on perceived supportive policies for returnee entrepreneurship and returnees’ difficulties with cross-cultural readjustment in their home countries. Analyzing first-hand survey data, we find a positive relationship between international knowledge transfer and returnees’ decisions to become entrepreneurs. This positive relationship is strengthened by the perception of the home country’s supportive policies for returnee entrepreneurship but is weakened by returnees’ perceived difficulties in readjusting to the local norms and culture in their home countries.

The role of information alignment and entrepreneurial traits on SME internationalization

Purpose – The paper aims to explore the internationalisation decision-making of small- and medium-sized enterprise (SME) owner/managers. Specifically, structural alignment theory (SAT) and regulatory focus theory (RFT) are utilised to examine the concept of opportunity recognition in the context of internationalisation choices. Design/methodology/approach – This paper is conceptual in nature, and an integrative cognitive model of internationalisation choice decisions is developed based on SAT and RFT, underpinned by a critical review of the international entrepreneurship (IE) literature. Findings – Scenarios are identified in which the structure of available information may affect the decision-evaluation process in terms of cognitive resource requirements. Further, the SME owner/manager’s motivational goal orientation is suggested to moderate the role of the information structure in line with IE literature. A conceptual model and propositions are presented. Research limitations/implications – The conceptual model and the propositions arising from the discussion in this paper offer new directions of research to explore SME internationalisation. Originality/value – This paper offers a cognitive perspective of SME internationalisation. This paper offers insights for policymakers, SME owner/managers, practitioners and researchers alike. For internationalisation decisions, this paper highlights the potential impact of the structure of information that is made available to SME owner/managers by industry or policy bodies; further, the moderating influence of motivational goal orientation may inform policy on how information should be presented to SME owner/managers to aid their decision-making.

Measuring the Political Context of Entrepreneurship: Lessons from the State Fragility Literature

While the international entrepreneurship literature has begun to expand its scope to include the world’s poorest and least-developed countries, it has not yet reached a consensus about how to devel...

"Returnee social networks, resource acquisition and returnee entrepreneurship"

We contribute to the literature on understanding the different categories of individuals in international entrepreneurship by exploring returnee entrepreneurs as a focal group. Building on social network theory and the international entrepreneurship literature, we examine the mechanisms through which returnee entrepreneurs’ liability of outsidership influences their exploitation of opportunities across national borders. The findings show that resource acquisition mediates the relationship between returnee entrepreneurs’ outsidership and firm performance. In addition, this study identifies the strategic actions that returnee entrepreneurs can take to overcome the inherent liability of outsidership and leverage potential overseas advantages. Returnee entrepreneurs can overcome outsidership through collaborating with local top management team (TMT) members who serve as local brokers and help to capture entrepreneurial opportunities by facilitating resource acquisition. This study extends existing research on...

SMEs Internationalization and New Product Development: Evidence from U.S. and South Korea Data

We draw on the organizational learning, innovation and international entrepreneurship literatures to develop hypotheses that link two types of international activities - foreign sales and offshoring of knowledge-intensive value chain activities - to new product development capability (NPDC) of SMEs. Furthermore, we also examine the impact of CEOs foreign experience on the NPDC of SMEs. Using a sample of small and medium-size enterprises from three industry sectors in the U.S. and South Korea, we test our hypotheses and find support. Implications of our findings for international entrepreneurship theory and practice are discussed.

Entrepreneurial orientation, marketing capabilities and performance: The Moderating role of Competitive Intensity on Latin American International New Ventures

International new ventures (INVs) face constant competitive intensity, which serves to increase the already high difficulty of enhancing marketing capabilities to gain superior performance in foreign markets. International entrepreneurship (IE) literature suggests that entrepreneurial orientation (EO) may influence INVs' performance. However, EO can be a resource-consuming strategic orientation, and INVs face resource constraints. Specifically, the literature expresses doubts as to whether increasing levels of EO are favorable for all INVs, all the time. From the resource-based view (RBV) perspective, the present paper extends previous IE research by investigating whether the degree to which EO and corresponding marketing capabilities vary under differing competitive intensities when enhancing performance. The findings highlight the moderating role of competitive intensity between EO and marketing capabilities for better INV performance. These have important implications for the decisions of IE scholars and practitioners about EO allocation in order to enhance the required marketing capabilities for INV's increased performance.The survey data consist of Mexican INVs, where the emphasis on constrained resources is high as are the competitive intensity challenges that these firms face in foreign markets. Therefore, this study contributes to the almost wholly ignored research about Latin American new venture internationalization and performance debate.

International entrepreneurial culture of Thai SMEs

This study examines an entrepreneurial culture of international small and medium-sized enterprises (SMEs). Organizational culture is one of the crucial aspects that can differentiate one firm from another. We highlight the role of organizational culture under a new construct International Entrepreneurial Culture (IEC), with a particular emphasis on how cultural values embedded in organizational cultures might influence SMEs’ performance through a strategic management process. Using data from SMEs engaged in international transactions based in Thailand, results suggest that IEC consists of three dimensions which are somewhat different from what was conceptually explained in the literature. The combination of these dimensions significantly affects strategy formulation and strategy implementation in a consequential manner, although it is not directly influential in international performance. The findings offer theoretical contribution in the international entrepreneurship literature as well as managerial implications for policy makers dealing with SMEs in small open economies found in emerging markets.

What Does Really Matter in the Internationalization of Small and Medium‐Sized Family Businesses?

Internationalization of family businesses is often considered a way to revitalize both the family and the business. However, the debate on its challenges and constraints is still inconclusive. This study explores whether incoming generations' involvement impacts the decision to exploit and explore international opportunities and to what extent altruism and competence‐based trust mediate that relationship. Three propositions are formulated drawing from international entrepreneurship literature and stewardship theory. To validate this framework, a multiple case study on four Italian family firms has been conducted. Implications for theory and practice are finally discussed.