International Entrepreneurship Research Research Articles

Knowledge is power: The impact of entrepreneurship education on the international entrepreneurship performance

Integrating and utilizing resources to seize business opportunities in complex and changing international markets is the key to enhancing the performance of entrepreneurial ventures. This study aimed to examine the impact of entrepreneurship education (EE) on international entrepreneurship performance. We used the resource-based view (RBV) to collect data from 315 international entrepreneurs through a questionnaire survey. The findings indicate that entrepreneurship education positively influences international entrepreneurial performance. Entrepreneurial bricolage (EB) and Entrepreneurial opportunity identification (EOI) are chain mediators of how entrepreneurship education affects international entrepreneurship performance. This study expands the application of resource theory to international entrepreneurship research, enriches the empirical research on entrepreneurship education, and provides new ideas for studying international entrepreneurship performance.

Realizing expectations? High-impact entrepreneurship across countries

AbstractComparative international entrepreneurship research has often used measures of high-growth expectations entrepreneurship to proxy for the construct of high-impact entrepreneurship. We revisit this practice by assessing the cross-country association between high-growth expectations and realized high-impact entrepreneurship to speak to construct measurement fit. We find that expectations are not a good proxy for realizations; they are associated with different determinants and outcomes, respectively. We go on to introduce the notion of entrepreneurial projection bias to gauge the misfit between expectations and realizations. Conditioning on entrepreneurial projection bias partially restores the association between realized high-impact entrepreneurship and its determinants (or outcomes) when realizations are proxied using expectations. Furthermore, we show that opportunity-motivated entrepreneurship also does not proxy well for high-impact entrepreneurship. Our analysis brings into question current survey-based approaches to measuring high-impact entrepreneurship and existing rankings of countries’ entrepreneurial performance, with important implications for entrepreneurship theory and policy.

African Firms Internationalization: What Can We Learn from the Most Cited Articles Published in the Last Decade?

Abstract This article aims to develop a recent overlook of African firms’ internationalization and its importance in consideration of the growing interest of multinational stakeholders. We analysed 26 most-cited journal articles, i.e., based on the number of citations, in the last decade, indexed in the Web of Science database, i.e., from 2011 to 2021. The previously published studies revealed that the internationalization of African firms is a fast-growing stream of the broader topic of international entrepreneurship. Our review also summarized two main research areas identified in the studied literature. The first focuses on selected features of African firms’ internationalization process. The second part underpins factors influencing their internationalization. The provided structured knowledge from the most cited articles serves as a tool to improve stakeholders’ understanding of international entrepreneurship in Africa. The study also proposes future research directions in international business and entrepreneurship in Africa. The article contributes to international entrepreneurship research in Africa by enumerating those aspects that shape the internationalization path of these global firms.

THE ANALYSIS OF LEVEL OF INSTITUTIONAL SUPPORT FOR INTERNATIONAL ENTREPRENEURIAL EXPANSION OF SMALL AND MEDIUM-SIZED ENTERPRISES FROM DEVELOPING COUNTRIES

The initiating and development of international entrepreneurial expansion of small and medium-sized enterprises (SMEs) from developing countries (DCs) is under the influence of numerous internal and external challenges and limitations. Unlike developed countries, the institutional context of DCs determines specific business conditions, so the relevant literature indicates the necessity of incorporating institutional theory in international entrepreneurship research. Compared to previous research in which the estimation of institutional environment was performed on the basis of one dimension, in this paper, a composite indicator of benefits of country institutional profile for entrepreneurship (CIPE), which is relevant for export SMEs, is used. The aim of the paper is to point out the importance and the necessity of measuring entrepreneurs’ perception on the characteristics of institutional environment of a small and open economy, encompassing its regulatory, normative and cognitive dimension. The subject of the research is the attitude of entrepreneurs/managers of export SMEs from Bosnia and Herzegovina (BIH) about the level of institutional support for their international expansion. The results of the research indicate that the CIPE scale has high reliability and validity. Based on the data collected from 81 export SMEs from BIH, it has been determined that the institutional environment in BIH does not provide significant support for international entrepreneurial activities. The normative dimension of institutional environment has been rated the most favorably, while the regulatory dimension is considered to be the greatest obstacle to international entrepreneurship development. The paper, both theoretically and empirically, presents the complexity of institutional profile of DCs, states the recommendations for overcoming institutional barriers, the areas of institutional framework where measures of government policy are necessary, as well as recommendations for future research.

The Emerging Frontiers of International Entrepreneurship Research in the Digital Age

The Emerging Frontiers of International Entrepreneurship Research in the Digital Age

Born global in 1847: International entrepreneurship at Siemens

AbstractThe early internationalization of new ventures has been described as a contemporary phenomenon enabled by globalization and digital technologies. However, today's multinational enterprise Siemens, founded in 1847, fits extant definitions of born globals. Based on this historical case, this study seeks to answer the question: What are enduring and contextually invariant aspects of early internationalization processes? An abductive analysis of the company's first 3 decades finds six relevant and emergent themes. We contribute to international entrepreneurship research by presenting evidence that early internationalization is not a new phenomenon, showing support for multiple extant findings, and providing new insights for otherwise underexplored themes. We also provide future research directions regarding personal‐level processes in international new ventures based on the analyzed 30 years.

Revisiting the Accelerated Internationalization of Emerging Market SMEs: The Roles of Firms’ Collaborations and Environmental Management Practices

Although the performance implications of inter- and intra-firm collaborations have been discussed by prior studies, how such collaborations can drive the accelerated internationalization of small and medium-sized enterprises (SMEs) originating from emerging markets remains unclear. This study was, thus, aimed at shedding light on this relationship by drawing insights from the resource-based view (RBV). We argued that the interaction between inter- and intra-firm collaborations can drive accelerated internationalization through environmental management practices. We, thus, developed and tested a conceptual framework by performing structural equation modeling on a sample of 208 SMEs based in the United Arab Emirates (UAE). Our findings reveal that the interaction between inter- and intra-firm collaborations is indeed conducive to accelerated internationalization. More importantly, we found that environmental management practices mediate the relationship between such interaction and accelerated internationalization. Our findings have important implications for international entrepreneurship research and practice in relation to how environmental management practices can enhance such a relationship.

Using the Gioia Methodology in international business and entrepreneurship research

Building theory is necessary to advance international business (IB) and international entrepreneurship (IE) research. Grounded theory approaches have been shown to be appropriate for building theory in many different fields, including IB and IE. The Gioia Methodology is a qualitative approach to developing a grounded theory that can meet standards of rigor associated with trustworthy research demanded by top journals. In this paper we provide a brief introduction to this methodology by outlining its fundamental philosophical and methodological underpinnings, especially concerning its three main procedural pillars: a) developing a data structure; b) developing a grounded model based on that data structure; and c) presenting findings in a convincing narrative. We present examples of selected papers that have employed the Gioia Methodology in IB and IE settings.

Enhancing export intensity of entrepreneurial firms through bricolage and international opportunity recognition: The differential roles of explorative and exploitative learning

This study proposes and tests a framework relating to the effect of entrepreneurial bricolage on international opportunity recognition (IOR) and the influence of the latter on export intensity. Survey data from 193 export-oriented entrepreneurial firms operating in Ghana indicates that entrepreneurial bricolage has an inverted U-shaped relationship with IOR – and that IOR has a positive effect on export intensity. A further analysis reveals that explorative learning enhances the inverted U-shaped relationship between bricolage and IOR, while exploitative learning improves the IOR–export intensity relationship. Our findings present important implications for international entrepreneurship research and the management of export-oriented entrepreneurial firms in developing economies.

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.

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.

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.

Effectual control and small firms' international performance: the mediating role of partnership and gaining new knowledge

PurposeExtant research has studied how entrepreneurial cognition influences firm international performance but what mechanisms translates entrepreneurial cognition into international performance remains a puzzle in the field. In this paper, the authors utilize effectuation theory to theorize this association.Design/methodology/approachUsing a survey of 164 internationalizing small firms from New Zealand, the authors examined a model of entrepreneurial cognition, action and gaining new knowledge as a framework to explain how effectual control, partnership for new opportunity creation and gaining new knowledge influence small firms' performance.FindingsThe authors found that partnership for new opportunity creation, and gaining new knowledge are two important mediation mechanisms in the focal association between effectual control and international performance.Research limitations/implicationsThis study is a cross-sectional design. Considering the importance of time in cognition and action, future research should utilize longitudinal research design.Practical implicationsThe authors’ findings provide implications for both small firms' managers and policymakers. These findings identify the critical importance of continuous knowledge development in internationalization process. Policymakers can help small firms gain more relevant and timely information about international markets and incorporate them in their decision-making to further develop international opportunities.Originality/valueThe authors contribute to international entrepreneurship research by delineating and verifying the important associations between entrepreneurial cognition, action and gaining new knowledge and their outcomes for firm's international performance. The authors also contribute to effectuation theory by elaborating on effectual control and how this logic leads to the development of new knowledge.

Digitalisation and internationalisation of SMEs in emerging markets

Digitalisation is one of the drivers for emergence of early internationalising firms. However, only limited empirical studies outline the mechanism of how these firms can benefit from digitalisation. To fill this gap, we explore how digitalisation benefits early internationalising SMEs and the determinants of digital orientation through case interviews of 20 SMEs from low and high tech industries in Malaysia. Our findings reveal the entrepreneur, product, firm, technology and market characteristics that determine the digital orientations of firms in the international market. Firms with the relevant characteristics of determinants could leverage digitalisation for early and rapid internationalisation. The paper also highlights six interesting topics worth further exploration in international entrepreneurship research.

Digitalisation and internationalisation of SMEs in emerging markets

Digitalisation is one of the drivers for emergence of early internationalising firms. However, only limited empirical studies outline the mechanism of how these firms can benefit from digitalisation. To fill this gap, we explore how digitalisation benefits early internationalising SMEs and the determinants of digital orientation through case interviews of 20 SMEs from low and high tech industries in Malaysia. Our findings reveal the entrepreneur, product, firm, technology and market characteristics that determine the digital orientations of firms in the international market. Firms with the relevant characteristics of determinants could leverage digitalisation for early and rapid internationalisation. The paper also highlights six interesting topics worth further exploration in international entrepreneurship research.

The impact of CEO characteristics on the international entrepreneurship of small island-based firms

This paper examines the impact of CEO characteristics on the International Entrepreneurship (IE) of listed island-based firms (IBFs) during the period 2009-2018. The research considers 164 companies from a sample of eight small islands with securities exchanges including more than one firm headquartered on the island. The selected islands are: Barbados, Cyprus, Fiji, Iceland, Jamaica, Malta, Mauritius, and Trinidad & Tobago. Framed on the upper echelons theory and social network theory, the influence on IE of CEO’s tenure, academic background and achievement, family allegiance, and international exposure is studied, taking into account the small island particularities. Through a binary probit model, it is concluded that CEOs’ family allegiance, tenure, and academic background (if the CEO majored in Business Administration, Finance, Accounting, or Economics) are negatively related with IE, while CEOs’ academic achievement and international exposure are positively associated with IE. Some of these results are atypical in the existing literature; nevertheless, islandness can explain these results. The conclusions attained suggest new theoretical and empirical lines of IE research for IBFs.

Essays in Comparative International Entrepreneurship Research

Entrepreneurship does not take place in a vacuum but is deeply embedded in its context. This dissertation proposes three new perspectives which highlight (1) the changing impact of socio-cultural conditions over the course of the venture creation process, (2) the persistence, portability, and intergenerational transmission of entrepreneurial culture, and (3) the different theoretical channels through which culture influences entrepreneurship. This dissertation advances three fresh perspectives which shed new light on the critical role of socio-cultural influences in comparative international entrepreneurship research. <br>

Application of Entrepreneurial Intention Model in Comparative International Entrepreneurship Research: A Cross-Cultural Study of India and Saudi Arabia

The development of entrepreneurial activities helps in realization of multiple goals of sustainable development. This study aims to inspect the applicability of the entrepreneurial intention model (EIM) to explain entrepreneurial intention in different cultural contexts. A survey was conducted using the Entrepreneurial Intention Questionnaire. Based on 535 valid responses received from business students in India (N = 285) and Saudi Arabia (N = 250), the model was analyzed using the partial least square regression method. The results show that the EIM is validated for the combined sample (R2combined = 0.522) as well as for the individual samples (R2India = 0.644; R2Saudi = 0.412). Demographic variables and human capital variables were found to impact the entrepreneurial intention differently in the combined sample and the individual samples of the two countries. Multigroup analysis was performed to test if the country variable influences the hypothesized paths in the model. The results of the multigroup analysis show that many of the hypothesized relationships (gender-personal attitude; gender-subjective norm; gender-perceived behavioral control, role model-subjective norm, role model-perceived behavioral control, subjective norm-personal attitude, and subjective norm-entrepreneurial intention) are significantly different in the two countries. This study addresses the gap in comparative international entrepreneurship (CIE) research by testing the applicability of EIM in two different cultures. The findings are also significant for policymakers at both national and international levels for facilitating entrepreneurship.

Decision-makers’ logic of control and SME international performance

PurposeThis paper aims to investigate the mediating role of founders/managers’ logic of control in transforming experiential knowledge and human capital into successful international performance of small- and medium-sized enterprises.Design/methodology/approachUsing a quantitative methodology, this study used hierarchical regression analysis to test the hypotheses.FindingsDrawing upon effectuation theory, the study proposed and found empirical evidence for the logic of control as an important mechanism that transforms experiential knowledge and human capital into international performance.Originality/valueThis study contributes to the international entrepreneurship (IE) research by investigating how the application of logic of control by SME founders/managers enables them to make use of their experiential knowledge and human capital as important intangible means to achieve successful international performance. The study tested the model in New Zealand wherein SMEs play a central role in economic development and depend heavily on international markets for survival and growth.

Entrepreneurial Alertness and SMEs' International Scope: The Roles of Business Model Innovation

This study proposes and tests a framework of how and when entrepreneurial alertness manifest into international success of small and medium-sized enterprises (SMEs). Specifically, using a survey data from 214 SMEs in UAE, this study investigates relationship between entrepreneurial alertness, business model innovation, and international scope of SMEs. Findings from the survey data indicates that business model innovation (i.e. entrepreneurial action) provides a significant mediating mechanism through which entrepreneurial alertness (i.e. entrepreneurial capability) impacts on SMEs’ international scope (i.e. international performance). When perceived domestic market dynamism is high, the effect of business model innovation on international scope is strengthened. From these findings, we discuss the theoretical contributions for international entrepreneurship research and the practical implications for managers and owners of SMEs.