International Entrepreneurship Research Research Articles

The emergence, advance and future of international entrepreneurship research — An introduction to the special forum

Since its genesis over twenty years ago, research in International Entrepreneurship has emerged as a field of study, and moved through the process of differentiation, mobilization and legitimacy building. Generally referred to as IE, research in this area is conducted by scholars worldwide and supported by various community structures, conferences and journals. In recognition of IE, this Special Forum was initiated to help clarify its parameters and history of development, the areas of research pertinent to it and critically, directions for future research.

Factors enhancing the choice of higher resource commitment entry modes in international new ventures

The choice of entry mode in foreign markets is an important strategic decision with major consequences for the success of international new ventures (INVs). It is generally accepted that these firms choose relatively low-resource commitment entry modes to operate in foreign markets. Nevertheless, some researchers have suggested that higher resource commitment entry modes in foreign markets also seem to be competitive strategies for INVs. In this study, from a marketing/international entrepreneurship interface perspective and focusing on organizational issues, we center our attention on international market orientation as a neglected yet important factor in INVs’ choice of higher resource commitment entry modes in foreign markets. We suggest that an entrepreneurial orientation and the timing of international entry are important correlates to an international market orientation. We also suggest that the international learning effort of INVs through their international market orientation has a direct, positive impact on the resources these companies commit to their foreign markets through the use of higher resource commitment entry modes. Accordingly, the model proposes a positive effect of entrepreneurial orientation and early international entry on international market orientation which, in turn, is positively related to higher resource commitment entry modes. The hypotheses were tested on country-level data from Spain, using a structural equation model to analyze relationships between the latent variables.This study extends previous international entrepreneurship research, including insights on antecedents of international new ventures’ choice of resource commitment entry modes in foreign markets. The paper also goes further than previous international entrepreneurship research, by addressing the strategic consequences of rapid entry into foreign markets. Additionally, the results of this work encourage international entrepreneurs to look beyond the explicit value of experiential market knowledge to realize the potential value of international market orientation as an antecedent to higher resource commitment entry modes.

The development of a high‐tech international new venture as a process of acting

PurposeThe purpose of this research is to analyze the development of high‐tech international new ventures as an acting process by individuals in relationship networks.Design/methodology/approachThe study cross‐fertilizes research on internationalization of international new ventures, opportunity development of entrepreneurs and innovation development in technology‐based firms. A longitudinal case study on the development process of an international new venture operating in the software business is used as a base for analytical generalization and theory development.FindingsThe study illustrates events at three intertwined levels of acting on the development of an international new venture. It defines internal problem solving, external solution creation, opportunity selling and opportunity organizing as the behaviors driving the emergent, multi‐level process and embedding the venture in various networks.Research limitations/implicationsStatistical generalization based on common patterns experienced by several firms was not sought in this study. Using the process research approach with event‐based analysis, the study, however, provides an in‐depth analysis of international new venture development through the actions of individuals at the level of key events. The methods for examining a complex development process over time can be utilized by other process researchers.Practical implicationsThe complexity of building high‐tech international new ventures is, to a great extent, due to the necessity of handling the process at three levels simultaneously and in connection with one another. Since international new ventures are often based on business opportunities that have a short window of opportunity, the timeline creates further challenges. Embedding the business into various resourcing, legitimizing and otherwise assisting networks is crucial.Originality/valueThe study provides an insight into the ways of acting in networks that intertwines the internationalization, opportunity and technology development with development of a high‐tech international new venture. The study follows the development process in real time, something that is quite rare in previous international entrepreneurship research.

International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis

This article explores the domain of international entrepreneurship (IE) research by thematically mapping and assessing the intellectual territory of the field. Extant reviews show that the body of IE knowledge is growing, and while notable contributions towards theoretical and methodological integration are evident, the field is described as phenomenally based, potentially fragmented and suffering from theoretical paucity. Premising that IE is positioned at the nexus of internationalization and entrepreneurship where entrepreneurial behavior involves cross-border business activity, or is compared across countries, we identify 323 relevant journal articles published in the period 1989–2009. We inventory the domain of IE to provide a relevant and comprehensive organization of its research. This involves examining the subject matter of IE research, and inductively synthesizing and categorizing it into major themes and sub-themes. In so doing, we offer a reliable, ontologically constructed and practically useful resource. From this base, we discuss the phenomena, issues, inconsistencies and interim debates on which new theory in IE may be built and research may be conducted. We conclude that IE has several coherent thematic areas and is rich in potential for future research and theory development.

The effect of human capital, social capital, and perceptual values on nascent entrepreneurs’ export intentions

This study investigates the influence of human capital, social capital, and cognition on nascent entrepreneurs' export intentions. The results indicate that while human capital and social capital influence the level of intended export, cognitive characteristics, such as self-efficacy and risk aversion, do not seem to influence entrepreneurs' intended level of export. The study makes three original contributions to international entrepreneurship research. The first one is the focus on “Real” Born Globals, i.e. entrepreneurs who express export intentions in the prefounding phase. The second is the focus on the individual-level factors rather than firm-level factors that explain export. Finally, the effect of experience is investigated from a path-dependency perspective rather than a “the-more-the-better” perspective. Our study suggests that it may be productive for researchers to look further into the concept of intention, as entrepreneurs' decision to internationalize presupposes a conscious intention of carrying out the action. Thus, the factors influencing the decision to internationalize may have been present prior to the founding of the venture.

Entrepreneurial Opportunity Recognition: Insights from Entrepreneurship Literature and Implications for International Entrepreneurship Researchers

International entrepreneurship (IE) as a legitimate academic pursuit has emerged at the intersection of entrepreneurship and international business (IB) literatures. However, in reality, the field is more international than entrepreneurial. In fact, researchers in IE have seriously failed to embrace relevant literature from both IB and entrepreneurship. In this paper, we have emphasized on opportunity recognition (OR) which is one of the core but neglected concepts of entrepreneurship in general and of IE in particular. First, from a systematic content analysis we develop an organizing framework consisting of antecedents, correlates, and outcomes of OR building on empirical OR studies in mainstream entrepreneurship literature. Second, we derive a distinct model of international OR with insights from the preceding content analysis and international business literature. This paper contributes to the theoretical understanding of OR in both entrepreneurship and IE and proposes future directions particularly for IE research concerning OR.

INTERNATIONAL ENTREPRENEURSHIP: A META-ANALYSIS

International Entrepreneurship (IE) research has attracted considerable attention over the last 20 years. However, empirical research on determinants of internationalization and on the internationa...

Is Entrepreneurial Cognition Culturally Bound? A Comparative Study Conducted in Turkey and the United States

International entrepreneurship research suggests that there is an association between national culture and entrepreneurship. However, the findings are inconsistent. This study aims to explore the relationship between culture and entrepreneurial cognition, namely likelihood of venture creation, aspiration of the entrepreneur for the new venture, and opportunity evaluation, based on Hofstede's (1980) conceptualization of culture.Findings suggest that culture and entrepreneurial cognitions are significantly interrelated.

Industry Structure Characteristics and International Entrepreneurship in India’s Software Industry

Drawing upon research in international entrepreneurship regarding born global firms as well as strategy and economics research on industry structure and March’s (1991) exploration-exploitation framework, we examine how domestic market structure influences international entrepreneurship in India’s software industry. We suggest that the domestic industry structure aspect of industry concentration influences which global industry segments these born global firms are involved in. Analysis of our sample comprising 876 of the major Indian software firms in existence in 2002–2003 shows high industry concentration with a few dominant firms and a number of firms with little market presence. Consistent with our hypotheses, we found that dominant firms tend to engage in the high revenue per employee industry segment of business process outsourcing (BPO), while less powerful firms tend to engage in the low revenue per employee segment of high technology. Implications of our research as well as areas for future research are discussed.

The global smaller firm in international entrepreneurship

In this paper, we provide evidence on the “global smaller firm” that actively seeks and achieves market presence in the lead international countries of its industry. This firm is distinct from the international new venture (or “ born global smaller firm”). We expect the global smaller firm to be distinguished by a stronger entrepreneurial orientation compared with the “intercontinental SME” that has not actively pursued presence in the lead countries of its industry. Evidence drawn from 10 in-depth case studies of the Greek gold and silversmith sector confirms our expectation, particularly in relation to proactiveness towards international opportunities, risk attitude and innovativeness. Specifically, proactiveness towards opportunities draws from active interaction with customers and partners in the lead countries. This is a significant finding since it shows that there is a distinguishable body of SMEs, apart from international new ventures, which can be characterised as international entrepreneurial. Therefore, the incorporation of the energetic international market selection and presence in the lead industry countries dimension (which pertains to global SMEs), along with that of speed to international markets (which pertains to international new ventures), may extend the scope of international entrepreneurship research.

Linking international entrepreneurship to uncertainty, opportunity discovery, and cognition

In this paper, we suggest a model of international entrepreneurship that links cognition, noticing opportunities, absorbing uncertainty, and bearing uncertainty, to international entrepreneurial action, which is important because of the increased interest in international entrepreneurship. The ways in which cognition affects opportunity identification are discussed to show how international entrepreneurs’ cognitive processes work in terms of identifying opportunities. We also explore the role of cultural differences, with respect to tolerance for bearing uncertainty, on international entrepreneurship. Finally, the model is used to identify areas for future international entrepreneurship research.

Applying broader strokes: Extending institutional perspectives and agendas for international entrepreneurship research

The role of the external environment is critical to understanding international entrepreneurial behavior. Scholars in this area seek to understand the role that the state and international organizations play in entrepreneurship, often employing an institutional theory perspective to analyze the phenomenon. However, the existing literature conceptualizes institutional theory in a very limited way, relying mainly on Scott's “three pillars”. We review recent work on institutional theory and international entrepreneurship in order to understand how scholars have applied institutional theory. We then discuss current trends in institutional theory. We conclude with suggestions for a deeper application of institutional arguments in international entrepreneurship research, with extensions from current literature in organization studies that can contribute to a richer research agenda.

Ownership Restrictions, Risk and Team Considerations in Family-owned Businesses

At the start of a new business both team and risk aspects have to be considered in the choice of business form. The partnership form offers advantages in terms of team considerations while the corporate form provides limited liability which provides a way to handle the risk problems associated with owning a firm. The advantage of having a well synchronized team is important for many new firms and especially for cases where family relations are considered important. Seen from that angle the partnership form should be opted for. But risk is high up in the mind of founders. Events might unfold in an unexpected way and in the process the economy and well being of the family is at stake. The corporate form with limited liability is in this sense a very attractive choice that is commonly chosen. But with the corporate form comes transferability of ownership of shares without consent of other owners. The shareholder team might therefore change in an unexpected and unwelcome way. Therefore it is important to consider different types of transfer restrictions when a new corporate form of business is started. This aspect has not been much considered in practice and in the entrepreneurship literature. An accountant or a lawyer often has to remind an entrepreneur of the importance of stability in ownership positions. In the paper we attempt to ascertain whether it is possible to foresee future complications and thus prepare already at the start of the business. The paper combines law and economics analysis of the different transfer restrictions found in various legal systems. The paper was presented at the Seventh AGSE International Entrepreneurship Research Exchange, Feb. 2-5 2010, University of the Sunshine Coast.

Signalling reputation in international online markets

AbstractAlthough online technology enables young and small firms to gain access to buyers in foreign markets efficiently, it does not overcome the liability of being an unknown seller among a sea of largely unknown firms. In order to internationalize effectively through online markets, such firms need to establish an online reputation within a context where there are a large number of competitors, most of (or all of) are relatively unfamiliar to customers. The purpose of this article is to explore how they might do so. Drawing on economics‐based signalling theory as well as past research in the areas of strategic management, marketing, and MIS, we hypothesize that firm‐controlled reputation signals with credible commitments—price, advertising, and umbrella branding—will impact reputational performance and moderate the impact of user‐generated reputation signals. We test the hypotheses using data collected about software products sold on the Web site Download.com. Our results show that signalling by advertising and umbrella branding affects reputational performance. The article provides insights about signalling in online markets for managers developing reputation‐building strategies, as well as for international entrepreneurship researchers. Copyright © 2009 Strategic Management Society.

Mitigating theoretical and coverage biases in the design of theory-building research: an example from international entrepreneurship

In this paper, we advance a three-stage theory-building framework to assist scholars in addressing theoretical and coverage biases by means of the appropriate design of cross-domain theory-building research. In our discussion, we use an example from research in international entrepreneurship, which has been emerging as a cross-domain area for the entrepreneurship and international business research communities since the mid-1990s. Theoretical bias can stem from the situation where the conceptualisation of a phenomenon whose research is currently emerging and depends upon several of the established disciplines of social science and their sub-domains, is in fact dominated by the theoretical approaches of a single domain. As to the coverage bias, the somewhat novel research domain of international entrepreneurship provides us with a means to illustrate how research in an emerging domain tends to focus on positive growth only and rarely takes appropriately into account companies that fare less well; for instance, accounting for survivor bias would require that scholars carefully acknowledge firms that go out of business for one reason or another. Observations from a longitudinal, multiple-case study research on the de-internationalisation of small high-technology firms is used to exemplify the structure of our framework.

The Past and the Future of International Entrepreneurship: A Review and Suggestions for Developing the Field

In this article, the authors analyze the field of international entrepreneurship (IE), which is in desperate need of further theory development. They study the field of IE since its inception by offering a comprehensive review of 179 articles on IE published in 16 journals over 14 years, covering the academic disciplines of strategic management, international business, entrepreneurship, and technology and innovation management. From a systematic content analysis of this literature, the authors develop an organizing framework to analyze the field's current status. On the basis of this analysis, the authors can identify theoretical inconsistencies, conflicting predictions, and knowledge gaps that all forestall the further development of IE research. They then develop directions for future research that can help to overcome these obstacles and promote future theory development.

Exploring firms' early internationalisation from a cognitive perspective: a conceptual model

Internationalisation has been widely explored due to its importance in both organisational and regional development. Nevertheless, so far, no complete and well-supported theory of cross-border entrepreneurial behaviour exists. Recently, some studies indicate that important findings and shifts in international entrepreneurship research can occur by applying a cognitive perspective. This paper proposes a conceptual model for exploring the cognitive dimension of the early internationalisation of ventures, relying on the intentional patterns of this behaviour as well as on its antecedents and determinants. The proposed model may also serve as a bridge to link the past theoretical approaches that have usually been viewed as contradictory.

Offshore outsourcing as a source of international competitiveness for SMEs

Scholars typically view offshore outsourcing as a means of reducing the cost of manufacturing activities for large corporations, yet offshore outsourcing may entail administrative and technical services, and may include activities outsourced by small and medium-sized enterprises (SMEs). Drawing on research in international entrepreneurship and services, we hypothesize and find evidence that offshore outsourcing of administrative and technical services by SMEs is associated with greater extent and scope of internationalization of sales. Offshore outsourcing enhances international competitiveness by enabling SMEs to reduce costs, expand relational ties, serve customers more effectively, free up scarce resources, and leverage capabilities of foreign partners.

Organising new business in a turbulent context: Opportunity discovery and effectuation for IJV development in transition markets

Research on entrepreneurship has suggested entrepreneurial phenomena to take place in a wide variety of contexts that deal with new venture emergence. Opportunity discovery and effectuation are seen as the essence of entrepreneurship. The present study examines entrepreneurial behaviour in the organising of an international joint venture (IJV) in Polish transition markets. The paper aims to answer the following question: How is an international joint venture organised in turbulent context through opportunity-discovery and effectuation behaviours? Based on theoretical analysis and a longitudinal case study, we illustrate the organising of an international joint venture in transition markets through specific behaviours of opportunity discovery and effectuation. We show especially the relationship-based nature of all the behaviours. The study advances international entrepreneurship research by emphasising the intertwinedness of the entrepreneurial behaviours with the drastic developments in the transition markets and the evolution of the IJV partnership.

Problemistic search and international entrepreneurship

This paper explains the internationalization process of small firms using the theory of performance relative to aspiration levels. The study complements prior theory by explaining why and how small firms are triggered to engage in internationalization despite not reaching maturity in their home market. We outline a model where firms’ internationalization is triggered by problemistic search, following periods of below-aspiration performance. The model is tested on 860 Swedish firms followed during an economic downturn. Results indicate that internationalization activities follow a bounded rational process characterized by search behavior which is triggered by performance feedback. The study complements prior theories of internationalization and offers a first empirical demonstration of the viability of aspiration-level performance theory in international entrepreneurship research.