International Entrepreneurship Theory Research Articles

Impact of Entrepreneurial Orientation and Entrepreneurship Education on Entrepreneurial Intention and Internationalization of Engineer-Entrepreneur Start-ups

While application of entrepreneurship concept is gaining traction in engineering and the entrepreneurship courses embedded in engineering programs increase swiftly, there is a lack of study focusing on how engineering programs enable entrepreneurial experiences in their programmes. The influence of entrepreneurial orientation and entrepreneurship education on achievement entrepreneurial goals of engineers in Sri Lanka remains understudied and uncertain in many circumstances. This necessitates a thorough examination of the mechanisms by which entrepreneurial orientation and education influences entrepreneurial intention. Further, as per international entrepreneurship theory, entrepreneurial intent leads to internationalization intent when facilitated by conducive environment factors. The objective of research is to investigate the influence of entrepreneurial orientation and entrepreneurship education on entrepreneurial intention and internationalization intent of engineer entrepreneurs in Sri Lanka. Three hypotheses related to above links were tested using a validated questionnaire through a survey of 92 engineer-entrepreneurs. The results show that there is a significant positive relationship between entrepreneurial orientation and entrepreneurship education on entrepreneurial intention and internationalization intent of engineer entrepreneurs in Sri Lanka. The variable entrepreneurial intention explained 40% variance of internationalization intention. This research gives valuable inputs and suggestions with respect to entrepreneurship education and promotion of entrepreneurship orientation of engineers in Sri Lanka for policy makers.

Underlying Internationalization Process Theories for Small and Medium Enterprises (SMEs): A Systematic Literature Review and Classification of Research Streams

Studies on the internationalization process of SMEs have fascinated the attention of researchers around the world. The dynamics in the internationalization process of SMEs have attracted researchers' interest in analyzing the behavior and the factors that influence it with various theoretical approaches to contribute to the development of international business studies. This paper intended to provide an overview of the various theories applied in investigating SMEs' internationalization process. The review was conducted on 100 journal articles between 2013 and 2020. The investigation results show that 17 different theories have been identified in the internationalization process of SMEs and we classified them into five streams. Based on our findings, from those 17 theories, the five primary published theories in order are (1) Uppsala theory, (2) Network theory, (3) Resource-based theory, (4) international entrepreneurship theory, and (5) institutional theory. This study also provides suggestions and implications for future research.
 Keywords— Internationalization process; Internationalization SME theory; Small and Medium Enterprises (SMEs)

Manager gender, entrepreneurial orientation and SMEs export and import propensities: evidence for Spanish businesses

This paper investigates the role of manager gender in SMEs’ decisions to get involved in exporting and importing activities, using a sample of 1,405 Spanish SMEs. We borrow insights from international entrepreneurship theories and feminist theories to set testable hypotheses regarding how managerial gender and entrepreneurial orientation (proactiveness, risk-taking and innovativeness) may influence SMEs export and import propensities. Using a bivariate probit model and controlling for other managerial and business characteristics, results reveal that there are not significant disparities in exporting propensities between men- and women-run businesses. However, female-led SMEs show a lower importing propensity, in comparison to male-led counterparts. In addition, the three entrepreneurial orientation dimensions (proactiveness, risk-taking and innovativeness) are important drivers for participating in overseas markets, and do not depend upon the manager gender. This work provides new empirical evidence on the comparison between men- and women-run SMEs as regards export/import behavior and thus, it contributes to improve our knowledge on the role of gender in SMEs internationalization. The role of manager’s gender in SMEs import propensity has not been investigated so far, and this is the main novelty of our research.

Business unpredictability, improvisation and business network commitment in small and medium-sized enterprise market entry

Market entry performance is critical during internationalisation; prevailing views suggest that firms need to carefully plan their entry before putting the plan into action. This article focuses on three attributes affecting the possibility and usefulness of making a pre-planned market entry: unpredictability, improvisation and business network commitment. We develop six hypotheses tested on a sample of 250 entries; our main finding is that improvisation plays a mediating role in relation to performance in unpredictable markets. The analysis reveals that the relationship between unpredictability and network commitment is not significant, while the effect of unpredictability on market entry performance is negative. These findings suggest implications for internationalisation and international entrepreneurship theory. For managers and entrepreneurs, we show that unpredictability weakens market entry performance, a negative effect that can be mitigated if the entrant firm improvises.

Differences between women- and men-owned export businesses: are women-owned export businesses more financially successful when they adopt an intensive export strategy?

Women-owned businesses are still underrepresented in terms of export activity. This study compares the financial returns that small- and medium-sized enterprises (SMEs) generate with women- versus men-owned export businesses. We examine competing hypotheses about how gender moderates the relationship between export intensity and SMEs' financial performance based on differing perspectives of women entrepreneurs. Based on these theoretical elaborations, we analyzed the export activity and profitability of 7,761 Canadian SMEs with women versus men owners. We found that women-owned export businesses achieve superior financial performance when they adopt an intensive export strategy. We discuss the implications of this finding for international entrepreneurship theory, practice and policy.

Universally-Enabling and Context-Binding Resources in New Venture Internationalization (WITHDRAWN)

Integrating institutional and effectuation theories, this paper examines the relationship between entrepreneurs’ means and internationalization in an emerging market. Results indicate that some means, such as technical expertise or business network membership, transform into valuable internationalization resources despite institutional conditions. Others, however, such as industry or international experience, are best deployed locally. Findings also indicate that certain means, such as entrepreneurship experience and number of founders, act as catalysts of internationalization, allowing for other means to transform into internationalization resources. This study extends effectuation theory by showing how means transform into internationalization resources and contributes to research at the intersection of institutional theory and international entrepreneurship by expanding our understanding of universally-enabling and context-binding internationalization resources. The paper also identifies a boundary condition to international entrepreneurship theories that emphasize the role of individual resources during venture internationalization by revealing a context in which certain traits exhibit non-standard relationships with internationalization.

Theory review: critical success factors for internationalization of small and medium-sized enterprises

Internationalization of small and medium-sized enterprises is getting more attention from researchers who study different paths, strategies, entry modes and their behavior on international market, while also identifying their limitations, potential risks, and threats. Globalization, especially the growth of online sales channels and fast (and affordable) communication have simplified the complexity of internationalization, which has made it easier for small and medium-sized enterprises to participate in the international market. Gradual step-by-step internationalization process and long-term planning have been replaced with new, fast market entrance strategies. Lately, many companies are being founded that put their focus and operational activities on internationalization from the beginning (born global). This paper gives an overview of the main internationalization theories (traditional internationalization theory, the network theory, and international entrepreneurship theory) and discusses their importance. Additionally, it examines the motives for the internationalization, main barriers, main risks, and explores the critical success factors that are important in the process of internationalization. Information provided can be useful to the companies that consider expanding their business operations abroad.

Universally-enabling and context-binding resources in new venture internationalization: Evidence from venture capital backed start-ups in an emerging market

Integrating institutional and effectuation theories, we examine the relationship between entrepreneurs’ means and internationalization in an emerging market. Results indicate that some means, such as technical expertise or business network membership, transform into valuable internationalization resources despite difficult institutional conditions. Others, however, such as industry or international experience, are best deployed locally. Findings also indicate that means such as entrepreneurial experience and number of founders act as catalysts of internationalization, allowing for other means to transform into internationalization resources. We extend effectuation theory by showing how different means transform into internationalization resources and contribute to research at the intersection of institutional theory and international entrepreneurship by expanding our understanding of universally-enabling and context-binding internationalization resources. In so doing, we identify a boundary condition to international entrepreneurship theories that emphasize the role of individual resources during venture internationalization by revealing a context in which certain traits exhibit nonstandard relationships with internationalization.

Sales growth or employment growth? Exporting conundrum for new ventures

Purpose Previous studies primarily focus on how to achieve better performance in the international markets, but few centers on whether internationalization is a promising strategy for new ventures’ growth and development. Based on two pioneering frameworks Conservative, Predictable, and Pacemaker (CPP) model and the 7-P model, this paper fills this gap by analyzing how exporting exert heterogeneous effects on two types of growth, sales growth and employment growth. Accordingly, this paper aims to favor market-oriented new ventures to make a strategy on expanding international markets. Design/methodology/approach This study is based on firm-level data from the Chinese Industrial Enterprises Database. The year 2005 was used as the shock year. By conducting the propensity score matching method, 793 couples of matched new ventures were collected with sales growth and 686 couples with employment growth. The difference-in-differences method was applied to analyze the various influences that exporting has on new ventures’ sales growth and employment growth. Findings The main finding of this paper is that new ventures that exported can achieve better sales growth than their counterparts that only operated domestically, whereas new ventures that remain in the domestic market have no difference in employment growth from those that exported. Research limitations/implications This study shows that exporting is especially beneficial for market-seeking new ventures. Because the study is based on Chinese data, scholars of international business can conduct further research on other countries with different economic structures. Originality/value Theoretically, this paper contributes to both international business theory and entrepreneurship theory by combining the CPP model and the 7-P model. Practically, this paper shows that exports mainly benefit the sales growth of new ventures. This suggests that business practitioners should consider their growth goals before they choose to enter the global market.

The role of internationalization in entrepreneurial orientation-performance link: empirical study of SMEs in a developing nation perspective

PurposeThis study aims to examine the mediating role of internationalization in the relationship between the dimensions of entrepreneurial orientation (EO) and performance, empirical study of small and medium scale enterprises (SMEs) in a developing nation.Design/methodology/approachThe study uses a sample of 158 exporting SMEs based in the sub-Saharan developing economy, Ghana. The use of hierarchical regression (ordinary least square analysis) was used by the researcher to assess the suggested model of the study.FindingsLargely supporting the conjectural predictions, the study indicates that EO positively and significantly influences performance; internationalization fully mediates the relationship between innovativeness and performance of export firms; internationalization fully mediates the relationship between risk-taking and performance of export firms; and finally, internationalization partially mediates the relationship between competitive aggressiveness and performance of export firms. Managers are, therefore, encouraged to strategically develop both their EO and internationalization, as the study has confirmed that EO has both a direct and indirect relationship with performance.Originality/valueThis study integrated a resource-based view of the firm and international entrepreneurship theory as a theoretical foundation. Theoretically, internationalization’s mediating role reveals the relevance of this construct in the linkage between entrepreneurial orientation and firm performance. Furthermore, the study extends the entrepreneurial orientation concept to the international business literature by estimating and testing models of the mediating link between entrepreneurial orientation and performance. Moreover, the study seeks to broaden the knowledge of entrepreneurial orientation and its relationship with performance in small and medium businesses. The study further extends the limited studies on performance, driven by entrepreneurial orientation and internationalization in a developing nation (Ghanaian) context. This paper besides seeks to highlight the impact of entrepreneurial orientation on performance when channeled through internationalization. The study also reveals the dimensions of entrepreneurial orientation to be important antecedents of internationalization, in attempts at unearthing the critical predictors of firm performance, especially those of international characteristics.

A Model for the Competitiveness Development of SMEs: from Dynamic Capabilities Perspective & International Entrepreneurship Theory

In this study, the competitiveness development model of food SMEs in entrepreneurial market has been developed. Dynamic capabilities perspective and international entrepreneurship theory were used to theorize. The present study is one of the few studies carried out to find a model for developing the competitiveness of SMEs from the dynamic capabilities perspective. Twenty food-industries managers and experts in food sector were interviewed. The systematic approach presented by Strauss and Corbin (1998) was used to analyze the interviews. The competitiveness development model consists of the causal conditions, the intervening conditions, the contextual conditions, the export strategies of food exporting SMEs and the consequences. The model identifies dynamic capabilities that lead to competitiveness and suggest the path to building such capabilities. Implications of findings are discussed at organizational-level and institutional-level.

Motives to SME internationalisation

PurposeThis study offers a comparative analysis of attitudes to small and medium-sized enterprise (SME) internationalisation in two different cultural settings, Wales and Brittany. The purpose of this paper is to conduct an in-depth investigation of attitudes to internationalisation among food and drink SMEs using mixed methods and focussing on both SMEs that internationalise and those that do not. This leads to a more comprehensive understanding of the issues influencing attitudes to SME internationalisation, which could facilitate policy development for such companies.Design/methodology/approachMixed methods are used in this study to provide a richness of data in investigating this complex issue. The majority of research in this field has focussed on quantitative research, however, this study heeds calls for more plurality in research on SME internationalisation to achieve a more detailed understanding of the issues affecting SME internationalisation. This is achieved through an online questionnaire of 169 food producing SMEs in Wales and Brittany, informed by International Entrepreneurship theory. A second phase of semi-structured interviews provides more context to the questionnaire findings, with 37 interviews conducted with respondents from the questionnaire. Each phase was conducted independently, with findings triangulated for further investigation.FindingsCompanies of all characteristics have the ability to internationalise; however, cultural differences were observed between Wales and Brittany in both attitudes and the conditions for internationalisation. Breton SMEs displayed more proactivity to internationalisation, stemming from more favourable conditions, a greater reputation for food and more confidence. Conversely, Welsh SMEs were more reactive, relying on government support in encouraging internationalisation. Breton SMEs also benefitted from the strong cultural identity of food products, especially through the Produit en Bretagne brand and its network of producers.Originality/valueThe study makes both a theoretical and methodological contribution to research on SME internationalisation. The comparative study of Wales and Brittany is significant in understanding cultural influences to internationalisation in two regions where the food and drink industry represents an important part of the economy. The focus on a single industry is significant in understanding the particularities of internationalisation within an industrial context, as findings from studies across multiple industries are considered less generalisable. A methodological contribution is sought through using mixed methods to provide a more comprehensive study.

Export Behavior, Export Performance and International Marketing Strategy on Export Promotion of Small and Medium Enterprises: An International Trade Perspective in Developing Countries

The aim of this Doctoral Seminar-I is to examine why the majority of SMEs in the developing countries like Ethiopia remain focused on the domestic market, while few choose to sell a proportion of their goods abroad, even though they face similar market conditions and operate in the same location. A variety of explanations to this problem exist in the literature examining the export promotion strategy of SMEs. Following the recognition of a gap in international marketing strategy such as: standardization and adaption, managerial determinants and export behavior including expansion and involvement based on the literature studies, this Doctoral Seminar-I seeks to shed light on the issue from the Ethiopian context. The seminar proposes an integrated theoretical framework, developed from the analyses of the extant literature review, to address an explanation why some SMEs export do not succeed to achieve the exporting of their products in the context of developing countries like Ethiopia. The proposed framework consists of a synthesized integration of the following theoretical perspectives: the resource-based view of the firm; stage theory; network theory, international entrepreneurship theory; and contingency theory which mostly applicable in the context of SMEs. Here, the key assumptions underlying the integrated framework that SMEs export behaviour represents a complex event, and therefore no single theoretical framework is robust enough to explain the phenomenon in detail. In addition, as none of the theoretical frameworks are without weakness it is argued their integration offsets the weaknesses of each, thereby offering a deeper explanation of the factors underlying export behaviour, international marketing strategy and managerial determinants. Keywords: Export promotion, Internationalization, Export behavior, Ethiopia DOI : 10.7176/JEP/10-16-06 Publication date :June 30 th 2019

The Relative Effects of Entrepreneurial Characteristics and Government Support on the Internationalisation and Performance of Malaysian SMEs

Research Aims: In line with international entrepreneurship theory, this study investigated the effects of entrepreneurial characteristics and government support on small and medium enterprise (SME) internationalisation and performance. Design/Methodology/Approach: The study focussed on Malaysia as a developing economy; data were gathered from 237 SMEs with international business operations to facilitate the examination of associative relationships among the variables. Research Findings: Results of structural equation modelling show that government support has a direct positive effect on internationalisation whereas entrepreneurial characteristics do not. Theoretical Contribution/Originality: Internationalisation is, however, a significant mediator only between government support and firm performance. Nevertheless, the firms' high mean scores in entrepreneurial characteristics suggest the possibility that government support can improve internationalisation only when entrepreneurial characteristics are strong. Managerial Implications in the Southeast Asian context: From a practical standpoint, the paper has emphasized the significance of government support in helping SMEs overcome their inexperience and size-related disadvantages. However, providing government support through direct state intervention and protectionist practices is not a sustainable strategy for business development in a region which is rapidly exposed to globalization and trade liberalization. Research Limitations and Implications: The results suggest a possibility that government support can improve internationalisation only when entrepreneurial characteristics are strong. In other words, instead of being a direct determinant of internationalisation, entrepreneurial traits may be a moderating factor between government support and internationalisation. However, this proposed moderating effect was not tested in the current study and needs to be investigated further in future.

Entrepreneurial Level Factors of Early Internationalization: A Cross Country Comparison

This paper provides new knowledge by applying the concept of international entrepreneurship to early internationalizing firms. This study explores the entrepreneurial level factors of success at the startup stage of international new ventures (INVs) in the context of three Central and Eastern European (CEE) countries in transition: Hungary, Lithuania and Poland. Based on multiple case study approach, the study provides important scientific insights into the international entrepreneurship theory by examining the still underexplored transition in CEE countries’ context. Lots of similarities emerge between INVs in three CEE countries, however their cultural and historical backgrounds are different enough to justify scholarly interest in potential idiosyncratic features. Findings suggest that there is significant diversity in the entrepreneurial level factors behind the early success of local INVs in international markets across these countries, especially in terms of direct foreign market experience, entrepreneurial orientation and existing network membership. Nevertheless, the findings reveal that in the sample focused on ITC businesses, solid industry experience of the founders proved to be key in the success of INVs’ internationalisation. DOI: http://dx.doi.org/10.5755/j01.ee.30.2.21185

The impact of overseas human capital and social ties on Chinese returnee entrepreneurs’ venture performance

PurposeEntrepreneurship research clearly documents the importance of human and social capital and stresses the way in which entrepreneurs take advantage of their own social affiliations and network strategies in pursuit of their entrepreneurial goals, yet the research on returnee entrepreneurs’ human and social capital is not sufficiently studied in the international context, in particular when returnees’ overseas human capital and social capital may be a misfit with local business environment. Using the data from Chinese returnee entrepreneurs’ venture activities in China, the purpose of this paper is to examine the impact of returnee entrepreneurs’ overseas capital (human and social) and domestic capital (human and social) on their venture performance in China, and further explore the interaction effect of different social and human capital with China’s entrepreneurial environment.Design/methodology/approachThis study surveyed 500 start-up businesses created by returnee entrepreneurs in China to collect data. Self-administered questionnaires were used to collect data on their demographic information, the information about the human and social capital of these returnee entrepreneurs, including domestic and overseas capital, various performance measures, and other control variables ending up with 226 usable questionnaires.FindingsThe results show that Chinese returnee entrepreneurs’ overseas human capital and social capital, as well as their domestic social capital, but not domestic human capital, have a significant impact on their venture performance. In addition, while domestic entrepreneurial environment does not affect the impact of overseas human and social capital on venture performance, it does provide an important contextual setting for domestic capital to improve returnee entrepreneurs’ venture performance.Originality/valueThe findings help enrich the understanding of the dynamic interplays among Chinese returnee entrepreneurs’ domestic human capital and social capital, overseas human capital, and social capital, as well as the entrepreneurial environment for returnee entrepreneurs’ success, which makes an important contribution to the international entrepreneurship theory by showing that overseas human capital and social capital are not a misfit with local markets. It also provides empirical support for the mediating effect of entrepreneurial opportunity identification. The important role of entrepreneurial opportunity is empirically supported in an international context: entrepreneurship is all about the discovery of entrepreneurial opportunities and exploitation of this opportunity to create viable business entities for new products and services, even in the Chinese context, a culture which is very different from the ones where the entrepreneurship theory was developed.

Entrepreneurial orientation and new venture performance: the moderating role of network types

This study explores the link between entrepreneurial orientation, network types and international performance of new ventures. Building on international entrepreneurship theory, we specifically investigate how the type of network affects the entrepreneurial orientation and performance relationship among new ventures from Lithuania, a transition economy in Central and Eastern Europe. Data collected from 83 international new ventures revealed a positive linkage between entrepreneurial orientation and international performance outcomes. The direct relation between three network types and international performance was not supported, offering rich potential for researchers looking to advance our understanding of the importance that networks may have in economies, particularly in transition economy contexts. Moreover, the findings revealed that high entrepreneurial orientation has a significantly higher international performance in the presence of high formal networks. The implications and directions for future research are discussed.

Bridging the gap between internationalisation theories and de-internationalisation: a review and research framework

Despite its importance on the overall strategy of firms, de-internationalisation has not received the attention it deserves. This article offers a research framework of how de-internationalisation is addressed within the most prominent internationalisation theories. We begin with an overview of the literature on de-internationalisation and its main definitions. Additionally, a typology of partial/full and defensive/offensive de-internationalisation is proposed. To bridge the gap between internationalisation and de-internationalisation, such typology is used to explain how the eclectic paradigm, the Uppsala model, the network theory and the international entrepreneurship theory address de-internationalisation. Opportunities for future research and managerial and political implications are also discussed.

The influence of exploration and exploitation on born globals’ speed of internationalization

PurposeThe purpose of this paper is to investigate exploration and exploitation as antecedents to speed of internationalization in born global firms.Design/methodology/approachBy using 150 born global firms in China, the authors demonstrate that the influence of exploration and exploitation on born globals’ speed of internationalization. The statistical method in this study is hierarchical regression model.FindingsThe results revealed that exploration has a negative effect on the internationalization of born global firms, whereas exploration does not. The interaction between exploration and exploitation has positive influence on born globals’ speed of internationalization.Practical implicationsThe study helps entrepreneurs and managers to better understand how to achieve international entrepreneurship success and internationalization success.Originality/valueThis study makes a theoretical development of internationalization speed, a core aspect of international entrepreneurship theory. First, this study contributes to theories on born globals’ speed of internationalization, which the authors redefined in the current study by using two approaches to measure the speed of internationalization of born global firms. Second, the study used exploration and exploitation as the two designated factors that are supposed to affect the speed of internationalization of born globals which contributes to the theoretical literature of international opportunity.

The negative influence of the entrepreneur’s level of higher education on the attractiveness of European SMEs as alliance partners in Brazil: the role of practical experience and international entrepreneurial orientation

Notwithstanding the contemporary relevance of alliance strategies for SME internationalisation, especially in the case of uncertain business environments, few studies have investigated human resource issues in the context of SMEs prior to alliance formation. Even more scarce are studies looking at the impact of a manager/entrepreneur’s characteristics on pre-alliance formation, despite recognition of the expected crucial role of the entrepreneur in this context and of the strong connection between an entrepreneur and their SME. Drawing on international entrepreneurship theory and empirical observations from an exploratory study, we propose a post hoc conceptual model. The exploratory empirical part of our study employs a sample of entrepreneurs from biotechnology SMEs in the United Kingdom and Germany intending to ally in a large emerging market (i.e. Brazil). Our empirical observations suggest an anomalous (at first glance) negative association between the entrepreneur’s level of higher education (a construct at the individual level) and the attractiveness of the SME as a partner firm vis-à-vis alliance formation (a construct at the firm level). Our post hoc model emphasises the role of practical experience and the corresponding levels of international entrepreneurial orientation as theorised variables mediating the observed empirical relationship. We develop theoretical propositions, and suggest practical implications and future research directions.