International Opportunity Recognition Research Articles

The impact of the COVID-19 fear on international opportunity recognition: the role of causation, effectuation and optimism

The impact of the COVID-19 fear on international opportunity recognition: the role of causation, effectuation and optimism

Explaining the international opportunity recognition with the qualitative comparative analysis: The role of dynamic capabilities self-efficacy and global mindset

Explaining the international opportunity recognition with the qualitative comparative analysis: The role of dynamic capabilities self-efficacy and global mindset

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.

The effect of international opportunity recognition processes on problem-solving competence: how does past negative entrepreneurial experience matter?

Research background: Little research addresses how identifying an opportunity in the international market, whether through active search or serendipitous discovery, may have implications for the subsequent gestation behaviors. An emerging body of research suggests addressing this deficiency by focusing on the cognitive and experience-based factors that international entrepreneurs use to develop an opportunity in the foreign market once identified. Purpose of the article: The aim of this study is to explore the role of active and serendipitous international opportunity recognition (IOR) in entrepreneurs? problem-solving skills (problem-solving speed and creativity), as well as the moderating effect of past negative entrepreneurial experience (PNE) on such relationships. Methods: This study used the survey data collection method through an online self-administered questionnaire. Partial least square structural equation modeling (PLS-SEM) method was used to analyze the results over a sample of Spanish international entrepreneurs. Findings & value added: The results show that entrepreneurs that have identified an international opportunity (IO) actively are better equipped to solve problems speedily than those that have discovered an IO serendipitously. In contrast, entrepreneurs who identified an IO serendipitously are better equipped to solve problems creatively. Furthermore, the impact of active search on problem-solving speed is greater for entrepreneurs without PNE, and the impact of active search on problem-solving creativity is greater for entrepreneurs with PNE. Also, it is found that PNE does not moderate serendipitous IOR relationship with problem-solving competence. These findings are relevant as they indicate that the IOR processes have implications for the subsequent gestation behaviors. Thus, the value added of this study is the combination of cognitive and experience-based factors of the international entrepreneur to enrich the link between IOR processes and IO development. These are two intertwined and interdependent processes, which, however, have been scarcely studied as a whole. The results of this research help international entrepreneurs to understand how and why the way they recognized an IO and having or not PNE influence their problem-solving skills during the IO development phase.

The role of affect in international opportunity recognition and the formation of international opportunity beliefs

Despite the significance of individual factors in how entrepreneurs recognize international opportunities either by active search or passive discovery, prior research has typically focused on cognitive aspects overlooking affect as a critical driver of this process. Drawing upon broaden-and-build and affect-as-information theories, we explore how courage, hope, fear of failure, and anticipated regret, as stable affective dispositions, can influence entrepreneurs’ active and passive international opportunity recognition (IOR). Also, based on the mental model theory, we examine whether both processes can lead entrepreneurs to differently form opportunity desirability and feasibility beliefs to judge the opportunities recognized in the foreign market. Based on data from a sample of 172 international entrepreneurs, we find that hope and anticipated regret are positively related to active IOR. Hope and courage are positively related to passive IOR, and fear of failure and anticipated regret are negatively related to passive IOR. Moreover, active IOR better informs opportunity desirability and feasibility beliefs than passive IOR, which indeed only predicts feasibility. These findings are original and novel and thus add value to the flourishing literature on the individual-level factors that influence IOR processes and the emerging literature on how international opportunity desirability and feasibility beliefs are formed to evaluate IOs.

Foreign market knowledge, international opportunity recognition, and the performance of export‐manufacturing firms

AbstractAccumulating foreign market knowledge is critically essential for international entrepreneurs operating in the export‐manufacturing industry to recognise new international opportunities. Foreign market knowledge positively improves the international opportunity recognition process to achieve superior performance of export‐manufacturing firms. Foreign institutional knowledge is the most important among three types of foreign market knowledge that international entrepreneurs should leverage to recognise new opportunities. International entrepreneurs must seek foreign market knowledge from the breadth of various sources in their quest for successful international performance.

The flourish, failure and future phases of joint internationalisation: a longitudinal case study on collective international opportunity recognition

The flourish, failure and future phases of joint internationalisation: a longitudinal case study on collective international opportunity recognition

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

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

International entrepreneurship from emerging to developed markets: an institutional perspective

PurposeThe authors explore how home and host market institutions impact emerging market (EM) international entrepreneurship (IE) into developed markets.Design/methodology/approachBased on four case studies of Nigerian entrepreneurs expanding into the USA, this qualitative research adopts an institutional perspective to the study of EM IE.FindingsThe findings show home and host formal and informal institutions simultaneously enable and constrain the IE process. Weak home institutions shape the international opportunity recognition decision but seriously impede international opportunity development and exploitation activities in the developed market. EM entrepreneurs benefit from highly functioning regulation in the developed market whilst also experiencing discriminatory treatment from institutions. The findings of the study further show the positive and constraining effects of host institutions throughout the process.Originality/valueBased on the findings, the paper details future research ideas, managerial implications and recommendation for policymakers.

The impact of the COVID-19 fear on international opportunity recognition: the role of causation, effectuation and optimism

The impact of the COVID-19 fear on international opportunity recognition: the role of causation, effectuation and optimism

Determining factors of international opportunity recognition: A conceptual approach

Determining factors of international opportunity recognition: A conceptual approach

The flourish, failure and future phases of joint internationalisation: A longitudinal case study on collective international opportunity recognition

The flourish, failure and future phases of joint internationalisation: A longitudinal case study on collective international opportunity recognition

Microfoundations of network exploration and exploitation capabilities in international opportunity recognition

While international entrepreneurship (IE) recognizes opportunity recognition (OR) as a central activity and the prominent role of network capabilities in OR, it is not informative as to how different network capabilities influence OR in international markets. We utilize dual network capability through the lens of exploration-exploitation to better understand how these two different capabilities influence the identification of international opportunities. Given that microfoundations perspective and prior experience in IE are under-developed and under-theorized, we explore founder’s prior experience as an essential microfoundation for the dual network capability. By employing structural equation modeling on a sample of 647 early internationalizing firms from a developing country, the study demonstrates that founders’ prior experience is a significant microfoundation of dual network capability in international OR. However, both exploration and exploitation capabilities fail to bring new opportunities in a changing market environment. A post-hoc analysis reveals that at a higher level of market change, younger firms benefit more from network exploration, whereas older firms achieve greater success when leveraging benefits from network exploitation. The study concludes with implications and future research avenues.

The performance of export manufacturing firms: roles of international entrepreneurial capability and international opportunity recognition

PurposeThe international entrepreneurial capability has achieved its legitimacy in international business literature. Leveraging capabilities to recognise opportunities is considered a pivotal strategy to achieve success. Drawing on the entrepreneurship literature and opportunity perspective, this study aims to investigate the role of international entrepreneurial capability in enhancing the international opportunity recognition (IOR) process and the performance of export manufacturing firms.Design/methodology/approachStructural equation modelling has been used to test the hypothesised relationship on 388 export manufacturing entrepreneurial firms operating in the apparel industry of Bangladesh.FindingsThe results signify that three international entrepreneurial capabilities, namely, international networking, learning and marketing capability, positively enhance the IOR process of export manufacturing firms. The IOR process positively mediates the relationships between these international entrepreneurial capabilities and firm performance.Originality/valueMerely having the international entrepreneurial capability is not sufficient to escalate the firm performance. It must be amplified by various strategic actions such as the IOR process. Entrepreneurs need to capitalise on the international entrepreneurial capability to leverage the IOR process and generate non-financial performance success. Entrepreneurial firms that focus more on stimulating non-financial performance can secure better financial performance.

International opportunity recognition: A comprehensive bibliometric review

International opportunity recognition (IOR) has been identified as being a critical process within international entrepreneurship (IE), as evidenced by the increase in the scholarly literature on the topic in the last 15 years. Despite the importance of a more rigorous approach to IOR studies, current knowledge concerning progress on this subject is scarce. The main objective of this study is to provide researchers with a better understanding of how research on IOR has evolved over the years. Thus, this study analyzes IOR evolutionary development by examining the conceptual evolution and mapping the structure of IOR research relating to IE, in order to provide insights into scholarly research as well as to detect current and future trends. Two complementary tools, SciMAT and VOSviewer, are used for this analysis. In addition, a bibliometric performance analysis focused on indicators such as productivity, citations, and the h-Index was carried out. The results show that IOR research has undergone a significant increase in recent years (2014–2018) evolving from an emerging issue between 1987 and 2012 to became a key topic which, however, must continue to be developed. The most productive journal is the Journal of International Entrepreneurship. The leading three publishing countries are Australia, the USA, and the UK. Moreover, it could be argued that in the emerging years, the IOR phenomenon was treated at both company level and individual level, but the most recent studies are investigating this phenomenon mainly at an individual level. As our main conclusion, it could be said that despite the growth in IOR research, study in this field is still very scarce, which allows us to suggest some future research directions.

Determining factors of international opportunity recognition: A conceptual approach

Objective: The objective of the article is to advance theoretical knowledge on international opportunity recognition by establishing a conceptual model with particular focus on answering why and how some entrepreneurs identify international opportunities (IOs). Research Design & Methods: This conceptual paper relies on qualitative and explorative research through literature review methodology. The analysis of available literature leads to the formulation of seven theoretical propositions. Findings: The findings allow us to establish why and how some entrepreneurs recognize IOs, by indicating that prior international knowledge and experience, international entrepreneurial alertness, entrepreneurial creativity and entrepreneurial passion are the determining factors. Contribution & Value Added: This research integrates in a single conceptual model various factors that have been studied separately. The influence of all these factors simultaneously and the interaction between them seeks to explain why and how an entrepreneur identifies IOs.

Accidental tourists? A cognitive exploration of serendipitous internationalisation

A substantial body of work views initial foreign market entries (FMEs) as intentional and deliberately planned by proactive decision-makers. However, research suggests that FMEs may also occur serendipitously. We take an international opportunity recognition (IOR) perspective and focus on the cognitive underpinnings of serendipitous internationalisation processes associated with six ventures. We highlight differences in the causal logics of decision-makers and cognitive attributes that, in the process of updating causal logics, create oscillations between serendipitous and subsequent planned FMEs. We also explain when and why an effectuation logic is more likely to be employed. We extend research on IOR by elaborating a dynamic interaction between planned and unplanned cognition that provides new insights into how cognitive processes facilitate opportunity recognition.

Why do some SMEs engage in joint internationalisation and others do not? Exploring the role of mental images in collective international opportunity recognition

This study explores the under-researched yet increasingly important process of collective international opportunity recognition. Collective opportunities are created through the interaction and joint acts of several firms and, thus, involve a complex merging of different perspectives and interests. This study analyses why some entrepreneurs recognise collective opportunities in foreign markets while others do not. The empirical data comprise qualitative interviews with 20 representatives of Finnish small- and medium-sized maritime enterprises that are exploring internationalisation opportunities in Norway and Russia. The study suggests that collective international opportunity recognition is affected by the entrepreneur’s mental images of inter-firm collaboration and the foreign market. These images comprise his or her interpretations of relevant experiences, the current strategies and resources, and attractiveness of the context. Mental images are built on information and stimuli that the entrepreneur receives regarding potential partner firms and the foreign market, although these inputs are interpreted through the current images. The study advances international entrepreneurship research by providing insights into the subjective and contextual process of collective international opportunity recognition from the perspective of individual entrepreneurs, exploring mental images as drivers in this process, and describing the content of these images. The study highlights the complexities involved in opportunity recognition in an international collaborative setting.

Networks in international opportunity recognition among Finnish wood product industry SMEs

Bioeconomy development will create new opportunities for firms operating in the international wood products markets, and identifying and exploiting these opportunities is emphasized as a key concept to achieving business success. Our study will attempt to address a gap in the literature on sawmill industry business development from the viewpoint of international opportunity recognition. The aim of our study is to provide a holistic description on how small and medium-sized enterprises (SMEs) in the wood products industry recognize and exploit international business opportunities, and how they utilize network perspectives in this context. The subject was examined through Finnish wood product industry SMEs by interviewing 11 managers and industry representatives. The results suggest that SMEs recognize international opportunities reactively per se. Social networks formed in professional forums were an important information channel for identifying international opportunities. Through vertical business networks, such as sales agents, firms have been able to increase their international market presence and free their own resources for other important activities. Horizontal dyadic business networks were seen to facilitate new international opportunities through cooperation, while excessive reliance on vertical networks raised concerns and seemed not to be effective in international opportunity recognition. Institutional networks formed a systematic way of recognizing international opportunities, but more so at the initial market entry stage.

Some see the light and some do not – Understanding the international opportunity recognition of Finnish SMEs in Russia through mental images

This case study explores how two Finnish maritime-sector SMEs recognized business opportunities in Russia. The phenomenon is investigated through the concept of mental image. The data comprise qualitative interviews conducted in 2015–2017, during which one firm continued Russian internationalization efforts despite various challenges and the other ended up abandoning the market. The study contributes to prior studies of international opportunity recognition by emphasizing the role of mental images in the process, opening up the contents of such images and elaborating their dynamics based on events over time.