International New Ventures Research Articles

Intellectual Property Rights Enforcement and Firm Performance of International New Ventures in China

How does intellectual property rights (IPR) enforcement influence innovation and performance of international new ventures (INVs)? According to the literature on IPR enforcement, innovation, and internationalization, we predict that IPR enforcement directly and indirectly (via innovation speed and innovation quality) impacts firm performance of INVs, and international intensity (INT) moderates the indirect effects. Based on both primary data and secondary data, the empirical results indicate that IPR enforcement promotes firm performance. In addition, innovation speed and innovation quality partially mediate the relationship between IPR enforcement and firm performance. Moreover, the relationship between IPR enforcement and innovation quality is weakened with high levels of INT. Theoretical contributions, practical implications, limitations, and future research avenues are discussed.

Dynamic and ambidextrous: international expansion of digital economy ventures from an emerging market

PurposeThis study aims to explore the internationalization trajectory of emerging country digital economy ventures by specifically concentrating on how ambidexterity facilitates international market expansion. Further, this paper examines how these ventures develop dynamic capabilities by using their ambidextrous skills in the entrepreneurial ecosystem (EE).Design/methodology/approachThis study adopts a multiple-case research design where data were gathered from five digital economy ventures in Turkey, serving an international array of customers.FindingsThe analyses reveal that, to a large extent, internationalization is enabled by the extensive use of ambidextrous skills in the ecosystem domain. We found evidence for practicing exploration and exploitation while interacting with several ecosystem pillars grouped as founder-related, firm-related and business context-related factors. These interactions portray how ventures sense, seize and transform resources to support their international expansion.Originality/valueThis study extends the current literature on internationalization by discussing the role of ambidexterity as a dynamic capability. The findings also demonstrate the EE as a construct to explain international entrepreneurial activity. Further, the study extends the existing literature by considering the calls for research on dynamic capabilities of international new ventures (INVs). Finally, the findings point to several implications both for practitioners and policymakers.

Entrepreneurial marketing and reconfiguration towards post-entry performance: Moderating effects of market dynamism and entry mode

Research is limited that explores the performance of international new ventures (INVs) from emerging markets in mature growth stages. Therefore, this study aims to develop and test a model of post-entry performance in the INV context, focusing on entrepreneurial marketing (EM) and reconfiguration as knowledge-based capabilities. Furthermore, the study examines market dynamism and entry mode with respect to their moderating roles in the relationship between knowledge-based capabilities and post-entry performance. INVs are often disadvantaged owing to resource constrained and market complexity. Hence, investigating this framework in this context is valuable. Using a sample of INVs from India, this article finds that EM shapes reconfiguration, and each drives post-entry performance of INVs. The results provide support for the utility of EM towards reconfiguration and post-entry performance, when navigating market dynamism. Moreover, EM and reconfiguration are useful in dynamic markets when INVs select an equity entry mode.

Examining the formation of entrepreneurial resources in emerging market international new ventures

While emerging market international new ventures (INVs) in high-technology sectors are gaining traction as entrepreneurial actors, the literature has remained silent as to the formation of key entrepreneurial resources that fuel INV performance. Thus, the issue of an entrepreneurial team and their core competences are a key issue to advance our understanding of emerging market INVs. The current article utilized resource-based view to bring forward human capital of entrepreneurial teams, international entrepreneurial culture (IEC), and entrepreneurial marketing (EM) as key entrepreneurial resources. The authors empirically examine a theoretical model using survey data from a sample of high-technology INVs from India. The results of the empirical examination reveal that human capital shapes IEC and EM, respectively. Also, EM fosters performance of emerging market INVs. This article provides useful implications for managers regarding the value of human capital in the entrepreneurial team, and their role in developing key entrepreneurial resources that spur superior performance.

What drives internationalization of new ventures? Evidence from India

The researchers have already recognized the importance of entrepreneurship, but the role of new venture internationalization is still a matter of research. This study is measuring the influence of education, age, technology, fear of failure, and competition on new venture internationalization. It based on the interviews of 3413 respondents from India done by the Global Entrepreneurship Monitor. The influence of various factors on new venture internationalization has been measured through logistic regression. The technology, fear of failure, and competition have a significantly positive influence on new venture internationalization. This is one of the inceptive studies to measure the impact of education, age, technology, fear of failure and competition on new venture internationalization.

Openness strategies and the success of international entrepreneurship

PurposeExternal knowledge is a key resource for the success and the survival of born global firms; however, existing models provide minimal evidence on how these firms should source this knowledge resource. Thus, the purpose of this research is to increase understanding on the impact of diverse knowledge search and knowledge formal protection in international new ventures (INVs).Design/methodology/approachThe study uses a quantitative methodology based on a sample of start-ups from the Spanish Community Innovation Survey data. Using ordinary least squares regressions on a 10-year period panel data, this research tests the moderator role of a heterogeneous base of international partners and formal knowledge appropriation strategy on the relationship between start-ups and their export performance.FindingsThe results show that compared to non-born global start-ups, born global firms benefit more from establishing relationships with a set of heterogeneous international partners. By contrast, all start-ups benefit from an extensive appropriation strategy if they establish such alliances with diverse international partners.Originality/valueThe study extends current theory on international entrepreneurship by providing a new theoretical framework for INVs of both the extensive use of formal mechanisms of knowledge protection and the access to heterogeneous and distant knowledge. This study has also several implications for knowledge management domain.

What do we know about capabilities and early internationalization? A review and synthesis

PurposeThe purpose of this study is to organize and assess knowledge on the capabilities pertinent to the early internationalization of born globals (BGs) and international new ventures (INVs).Design/methodology/approachA systematic approach is used to search, code, organize and synthesize 155 peer-reviewed journal articles on capabilities and early internationalization.FindingsThe study delimits eight operational and five dynamic capabilities. The synthesis links capabilities to three antecedents (i.e. firm specific factors, managerial socio cognitive attributes and market factors) and three outcomes (i.e. precocity, survival and performance). While 7 of the 12 linkages identified are well-established, relationships involving market factors, survival and dynamic capabilities are sparsely researched.Research limitations/implicationsThe authors know more about the effects of firm specific factors and managerial socio cognitive attributes on operational and dynamic capabilities than we do the influence of market factors on either group of capabilities. Likewise, the authors know more about the influence of operational and dynamic capabilities on performance than we do their impact on precocity or survival.Practical implicationsAs the pandemic has shown, businesses with adaptable capabilities (e.g. shifting from a brick and mortar to an online/omnichannel approach or micro-breweries competent to switch from manufacturing beer to hand sanitizer) have increased their chance of survival while helping society cope.Originality/valueThis to the authors’ knowledge is the first study to provide a comprehensive review of literature on the nebulous concept of capabilities, in the context of the burgeoning research stream on early internationalization.

Are Networks a Gateway to European Funding? Considerations from a Systematic Literature Review

Internationalization is generally an intense and dynamic phenomenon that requires huge resources to be triggered and this is all the more evident for International New Ventures (INVs) because of the so-called liability of newness and liability of foreignness. In fact, previous studies show that INVs, as they appear to have a limited availability of resources such as human and financial capital, are more disadvantaged in the internationalization process. A systematic literature review of twenty-five articles, classified into four categories, was carried out to reveal the main mechanism by which INVs try to deal with the lack of resources through relational networks. This study seeks on the one hand to contribute to the literature on network theory in internationalization, focusing on one of the possible categorizations of networks—social and business networks—by interpreting and investigating the two-phase internationalization process (exploration and exploitation), from the point of view of the International New Ventures entrepreneurs; on the other hand, it allows to make the preliminary considerations of a broader project aimed at understanding if and how networks can be used in the internationalization process of INVs to access European funding.

International network formation, home market institutional support and post-entry performance of international new ventures

Effectuation and causation decision-making logics are noted to be major alternative approaches to international network formation. However, knowledge is lacking on how and the conditions under which the two approaches contribute to post-entry performance of international new ventures (INVs). We integrate the theory of effectuation and institutional development logic to explain how effectuation and causation approaches to international network formation individually and jointly contribute to post-entry performance under varying conditions of home market institutional support. We test our proposed framework on primary data from 228 INVs in a sub-Saharan African economy. Results suggest that greater uses of both effectuation and causation approaches to international network formation are associated with stronger post-entry performance. More interestingly, results show that the joint effect of the two international network formation approaches on post-entry performance is amplified under conditions of low home market institutional support. Our findings provide theoretical and managerial insights on the importance of complementing effectual and causal reasoning in international network formation in weak home market institutional environments.

Innovation adaptation and post-entry growth in international new ventures

Innovation plays a vital role in the internationalization process of international new ventures (INVs). However, to date, there are insufficient empirical studies exploring the innovation decisions that enable these firms to grow once the internationalization process has started. In response to this research gap, this paper examines the impacts of the technological pattern adopted at the initial foreign entry and the decisions to improve it afterward. In general, while the original technological patterns contributed to the immediate growth of INVs (that is, 1 year after the market entry), the results of this study reveal that the changes that occurred in the patterns have more significance on the post-entry growth (that is, 4 years after the market entry). Therefore, this study is supported by earlier works that emphasize the role of innovation as a stimulus for internal change as well as resource adaptation as a means of achieving sustainable growth in the international markets.

Do international new ventures have attraction advantages?

Attracting qualified employees stays one of the most critical challenges for new ventures – exceptionally for those who enter foreign markets close after inception: international new ventures (INVs). Based on signaling theory and person-environment (PE) fit-theory, this paper examines the impact of INVs approach of internationalization on potential jobseekers’ perceived organizational attractiveness. We conducted two studies to elaborate our research questions - a qualitative pre-study where we interviewed c-level-staff (n=23) from 22 different new ventures and a subsequent metric conjoint experiment with jobseekers (n=222) to test our theoretically derived hypotheses. Results from a multilevel regression analyses show that INVs have attraction advantages based on their proactive internationalization approach and that particularly jobseekers with previous international experience feel attracted by INVs – providing ground for human-resource based competitive advantages when it comes to proactive internationalization. We derive implications for new venture recruitment theory and offer practical implications for startup staffing. Keywords: International new ventures (INVs); International Entrepreneurship; Recruitment; Metric conjoint experiment; Organizational attractiveness

Innovation and differentiation of emerging market international new ventures the role of entrepreneurial marketing

ABSTRACT This study examines the phenomenon of high-tech innovation in international new ventures (INVs) from emerging markets. Such investigation is important as innovation is the catalyst for international growth of resource constrained INVs from emerging markets. As this is a recent trend, the literature is incomplete as to how INVs from emerging markets develop and bring high-tech offerings to international markets. The authors bring entrepreneurial marketing to the forefront to better understand how INVs foster exploratory innovation and differentiation strategy that result in international success. This study uses a sample of high-tech INVs from India to conduct our empirical analysis. The results indicate that entrepreneurial marketing shapes exploratory innovation and differentiation strategy, both of which drive superior international performance. The findings also confirm the utility of entrepreneurial marketing toward exploratory innovation when operating in turbulent markets.

How learning orientation drives the international performance of INVs: the roles of entrepreneurial bricolage and degree of internationalization

PurposeDespite extensive research into the effect of organizational learning processes on firm performance, it remains unclear how and when learning orientation influences the international performance of international new ventures (INVs). Accordingly, the purpose of this paper is to investigate how learning orientation drives the international performance of INVs.Design/methodology/approachStructural equation modeling is used to test the research model with questionnaire data from mainland Chinese INVs.FindingsResults show that: learning orientation positively influences entrepreneurial bricolage; entrepreneurial bricolage positively influences the international performance of INVs; entrepreneurial bricolage plays a mediating role between learning orientation and international performance; degree of internationalization (DOI) weakens the effect of entrepreneurial bricolage on international performance.Originality/valueThis study makes a useful supplement to the INV literature by revealing that entrepreneurial bricolage plays a mediating role in the relationship between learning orientation and the international performance of INVs. It also contributes to the entrepreneurial bricolage literature by introducing entrepreneurial bricolage into the empirical research of INVs and identifying the learning orientation antecedents and performance consequences of entrepreneurial bricolage. In addition, this paper enriches the understanding of the boundary conditions for how entrepreneurial bricolage affects international performance showing that DOI has a negative moderating effect on the relationship between entrepreneurial bricolage and international performance.

The determinants of international new venture performance: a review and future research agenda

PurposeThe purpose of this paper is to critically review and synthesize the articles on determinants of international new venture (INV) performance to identify the research gaps in this area and develop a future research agenda.Design/methodology/approachAdopting a semi-systematic review approach with a fucus on using a vote-counting technique, this paper reviews 99 journal articles published between 1994 and 2019 to assess the determinants of INV performance.FindingsThe results indicate that the majority of the INV performance articles employ a clearly specified theoretical foundation, focus on INVs in developed economies and non-service sectors, identify numerous firm-level determinants of INV performance and use advanced statistical methods (e.g. structural equation modeling and panel data models). However, the research of INV performance is still limited by a lack of a broader integration of theories at different levels, inconsistent theoretical predictions and empirical results, knowledge gaps, and estimation biases (e.g. endogeneity).Originality/valueINV performance has received increasing attention over recent decades, but this area is still characterized by fragmentation and inconsistency. This paper provides a comprehensive and nuanced review that synthesizes and clarifies our current knowledge on the determinants of INV performance, provides further discussion with deeper insights from both theoretical and methodological aspects, and points out some directions for future research.

International new ventures’ international performance: a matter of network entrepreneurial orientation and network management activities

PurposeThe purpose of this paper is to demostrate that commitment to developing knowledge sharing, coordination, adaptation and resolving potential conflict results in idiosyncratic relational assets for firms, which increases the benefits that international new ventures (INVs) can obtain from their networking activity.Design/methodology/approachTo test the theoretical model, a survey was conducted among a sample of INVs. The data obtained were examined with structural equation modelling using the maximum likelihood estimation procedure in linear structural relations software.FindingsThe results showed positive effects of network entrepreneurial orientation (EO) on knowledge sharing, coordination, adaptation and resolving potential conflict, but only network coordination showed a positive effect on international performance.Research limitations/implicationsThe study introduces and extends EO to the network level and shows that it contributes to INVs’ international performance through its influence on the development of coordination activities among networked firms.Practical implicationsThe results provide guidance for building INVs’ networks. Entrepreneurs will find orientations about which partners could be more valuable to them.Originality/valueLittle research has addressed the study of network management activities to create a network structure. This paper reveals how firms’ volition and commitment to networking helps us to understand, in a fine-grained manner, how INVs gain benefits from their social networks. Additionally, EO at the network level is also studied, and arguments are proposed showing its relationships with the aforementioned relational activities based on the fact that entrepreneurial-oriented partners are supposed to be more active in networking.

Moving Research on International new Ventures Forward: A Systematic Reviews on Case Studies

Objective: We delve into the rapid internationalization literature to provide a literature review on the most recent empirical research on international new ventures (INVs). We focus on reporting how the literature on INVs has evolved through the lenses of case studies, and we highlight issues on the use of INVs concepts.Method: We conducted a systematic review of 99 case studies articles related to international new ventures published in leading journals in all areas of knowledge within management. We performed a two-cycle coding and a thematic analysis.Main Results: We have found researchers are applying INV and BG concepts interchangeably, thus incorrectly. Scholars have not considered nor discussed the theoretical implications of dropping and adding criteria when selecting cases. We also found the research in INV has thematically evolved as scholars have increasingly studied the post-internationalization moment of these companies.Relevance/originality: We contribute to the INV's literature by demonstrating the theory is now evolving to understand the post-internationalization moment of these companies. We also discuss the implication of selecting cases disregarding the criteria that qualify them as INVs.Theoretical/methodological contributions: Our research contributes with a discussion on the implications of loosely applying the INVs concepts and offers insights on how the literature has evolved.

International social ventures: A literature review and guidance for future research

International entrepreneurship has been studied extensively during the past decades. Oviatt’s and McDougall’s (J Int Bus Stud 25:45–64, 1994) framework describing international new ventures (INVs) has been pivotal in developing this research field. This paper adds to this research field through focusing on a particular type of INVs that typically regard social impact as the core objective rather than a positive side-effect to profit. We collectively label these firms international social ventures (ISV). The paper provides two interrelated contributions. Firstly, a literature review brings a systematic overview of the extant ISV research. Secondly, building on this, five propositions are developed in close relation to each of the essential elements positioned in Oviatt’s and McDougall’s (J Int Bus Stud 25:45–64, 1994) seminal INV framework. In doing so, we illustrate that ISVs share some general characteristics with INVs. However, the particular manifestation of these deviates from the traditional type of INVs. In addition, the underlying rationale differs from traditional pure economic logics by involving a combination of both social and economic logics. The paper proceeds to bring suggestions for future research.

Pre-Internationalization and Performance Conditions of First-Time Exporting SMEs

This article aims to determine whether pre-internationalization conditions improve the performance of first-time exporting small and medium-sized enterprises (SMEs). Two pre-internationalization conditions are discussed here: firm performance and age at internationalization. Building on the aspiration-level performance model of March and Shapira (1992) with sequential internationalization and international new-ventures approaches, this article develops two research hypotheses proposing an effective alignment with pre-internationalization performance and age at internationalization. These research hypotheses are examined using a panel database of 522 French SMEs that began export operations for the first time in 2014. The statistical results partially support our first hypothesis by showing that early-internationalizing SMEs with a lower performance relative to their peers significantly increase their post-internationalization performance. Contrary to what we predicted in our second hypothesis, we observe that late-internationalizing SMEs, which deliver a much higher performance than their historical aspirations, significantly reduce their post-internationalization performance.

Entrepreneurial characteristics and internationalisation of new ventures: a study of cognitive factors

Researchers (Acedo and Jones, 2007; Acedo and Florin, 2006b; Zahra et al., 2005) have argued that the impact of entrepreneur's cognition in international new ventures (INV) has been an under-researched area though it has been studied in the field of entrepreneurship. This paper tries to study impact of various cognitive factors, attitude, tolerance for ambiguity, proactivity, intuition and international orientation, on speed of internationalisation in new ventures. Primary data was collected from 149 French and 98 Indian SMEs. The results showed decision makers' attitude towards internationalisation affect firm's early internationalisation, it was found positive in India while negative in France. Interestingly decision makers with high intuition were found first to focus on domestic markets and later enter into international markets. International orientation is very important for early internationalisation in new ventures in France.

Entrepreneurial characteristics and internationalisation of new ventures: a study of cognitive factors

Entrepreneurial characteristics and internationalisation of new ventures: a study of cognitive factors