International New Ventures Research Articles

The Performance of Tunisian International New Ventures: Entrepreneurial Orientation, Market Orientation and Marketing Capabilities

The objective of this research is to study and understand how international business orientation, market orientation and marketing capabilities influence the performance of International New venture (INV).To this end, a quantitative analysis using the structural equation method is used with 131 Tunisian international new ventures. The results show that international entrepreneurial orientation and market orientation are positively related to the performance of Tunisian international new ventures and the interaction between these two orientations generates a positive effect on marketing capacities and subsequently on international performance.

Dynamic capabilities and performance of emerging market international new ventures: Does international entrepreneurial culture matter?

This article examines the phenomenon of dynamic capabilities in international new ventures (INVs) from emerging markets. While this research stream is gaining traction, the literature is fragmented as to how INVs from emerging markets develop dynamic capabilities to overcome resource constraints and legitimacy issues. The authors highlight the importance of a comprehensive international entrepreneurial culture (IEC) to better understand how these INVs develop dynamic capabilities and foster international performance. This study draws on organisational learning and the knowledge-based view (KBV) to examine the role of IEC in shaping dynamic capabilities and international performance under various levels of market turbulence. To conduct our analyses, this study uses a sample of INVs from India – a key emerging market. The results indicate that IEC shapes dynamic capabilities and both support superior international performance. The findings also confirm the utility of IEC towards dynamic capabilities and international performance when operating in turbulent markets.

Internationalisation path heterogeneity and growth for international new ventures

An increasing number of new venture firms are internationalising their business operations early in their lifecycles to achieve superior performance. Taking the perspective of dynamic capability theory, our study sheds light on the effect that heterogeneity in experiential learning has on international new venture (INV) growth in terms of a curvilinear relationship. Specifically, we introduce the concept of internationalisation path heterogeneity to capture the path-specific features of INV experiential learning and capability building and explore the relationship between internationalisation path heterogeneity and INV firm growth. We also argue that this relationship will be moderated by environmental munificence because the cost and benefit of path heterogeneity is bounded. We test the hypotheses based on empirical analysis of a longitudinal dataset of 1054 INVs from 58 countries. Overall, this study provides a dynamic and fine-grained view of the role played by internationalisation path heterogeneity in driving the growth of INVs.

Founder ethnic composition, early internationalization, and new venture performance

This study empirically examines the role of founder ethnic composition in international new venture (INV) strategy choice and performance. We find that new ventures with more immigrant entrepreneurs on the founding team have an advantage of pursuing an INV strategy to generate higher revenues. Moreover, new ventures with an ethnically diversified founding team tend to achieve higher revenues and profits. Our findings suggest that immigrant entrepreneurs can align available immigrant resources with their new ventures’ international strategy to increase venture performance. This study contributes to both immigrant and international entrepreneurship literature. Managerial and policy implications are also discussed.

A Multi-Level Study of Entrepreneurial Characteristics, IPR, and the Degree of Internationalization

An emerging topic in strategic entrepreneurial research is how institutional influences impact on entrepreneurial internationalization behavior. This paper sets out to undertake a multilevel study regarding the impact of home country IPR on the relationships among entrepreneurial self-efficacy, entrepreneurial opportunity perception, risk tolerance, and the degree of internationalization. Through a combination of the dynamic capability perspective and entrepreneurial bricolage theory, we propose a model that underpins the role of home country institutional influence, in particular, IPR during the internationalization of new ventures. Using a sample of 91 countries, we empirically test the model via multi-level logistic regression analysis controlling micro as well as macro variables such as personal education level, gender, household income, purchasing power per capita, and GDP growth rate. Our findings suggest that higher IPR protection mechanism in the home country will strengthen the positive relationships between entrepreneurial self-efficacy and the degree of internationalization, entrepreneurial risk tolerance and the degree of internationalization. However, although the findings support the positive relationship between entrepreneurial opportunity perception and the degree of internationalization, the moderating effect of IPR protection in the home country is not supported for such relationship. Our study contributes to the literature by extending entrepreneurial bricolage theory and dynamic capability approach into international entrepreneurship research. We advance the understanding of how the protection of intellectual property in home country influences the internationalization efforts into new ventures taking consideration of the personal-level characteristics of entrepreneurs.

Network knowledge gathering of international new ventures, approaches, and preconditions

Abstract This paper contributes to the growing stream of research on knowledge gathering in the internationalization process of international new ventures (INVs), as well as their networking activities. It identifies two dimensions describing the network knowledge-gathering approaches: 1) relationship approach (well-wishing or opportunistic) and 2) intentionality (intentional or unintentional search for knowledge), which enable the classification of the INV activities. The findings are based on a qualitative study conducted on four Polish INVs from the manufacturing industry. They show that internationalizing companies may behave opportunistically in their knowledge-gathering behavior, while, at the same time, some of their knowledge is also gathered unintentionally. The preconditions of knowledge-gathering behaviors suggested in the study include, among others, the managers’ experience, power division in the networks, and the duration of a relationship with a partner.

Specialized marketing capabilities and foreign expansion of the international new ventures

ABSTRACT The study examines specialized marketing capabilities’ role in the early internationalization of small- and medium-sized enterprises (SMEs). Emphasis is on sales and communication capabilities and on contrasting international new ventures (INV) from the mature economy of Italy and the posttransformation economy of Poland. Individual expert interviews, including a card-based game, and an entrepreneurial marketing conceptual framework were conducted with representatives of seven manufacturing INVs. The findings obtained through content analysis of interviews with CAQDAS software show how the main specialized marketing capabilities contribute to early expansion of INVs through an interaction with architectural marketing capabilities.

Revisiting entrepreneurial capabilities and export market orientation: a multi-scale investigation in an emerging economy

PurposeThe study aims to bridge entrepreneurial capability, export market orientation and the international performance of international new ventures (INVs). Thus, multi-scale entrepreneurial capabilities have been adopted to provide more profound insights into the literature on early internationalisation. Since little is known about the antecedents of export market orientation, the performance outcome of this is ambiguous. This study aims to enhance knowledge in this pressing research area.Design/methodology/approachThe sample of this study consists of data (354 firms) from INVs operating in the apparel industry of an emerging economy, namely, Bangladesh. Structural equation modelling has been used to investigate the hypothesised relationships.FindingsFor the Deshpandé and Farley (1999) scale, the effect of general entrepreneurial capability on intelligence dissemination and responsiveness is positively significant. Similarly, the effects of international entrepreneurial capability on customer orientation, intelligence generation, dissemination and responsiveness are positively significant. However, general entrepreneurial capability has non-significant effects on customer orientation and intelligence generation. The results also showed that export market orientation positively mediates the relationship between international entrepreneurial capability and firm performance. For the Morris and Paul (1987) scale, the hypothesised relationships between capabilities and market orientation are positively significant and, therefore, support the mediating relationships for both general entrepreneurial capability and international entrepreneurial capability.Originality/valueMerely having capabilities without acknowledging the firm's strategic orientations is not sufficient to secure superior performance. The authors urge entrepreneurs to capitalise on their entrepreneurial capabilities to leverage organisation-wide export-market-oriented behaviour to achieve superior international performance in emerging economies.

Competitive strategies and international new ventures’ performance: Exploring the moderating effects of internationalization duration and preparation

The purpose of this article is twofold: to bring back to discussion the importance of strategy as a key element for international new ventures (INVs) to achieve higher international performance and to assess the relevance of contingency perspective, particularly two organizational contingency factors (internationalization duration and internationalization preparation), in moderating the strategy–performance relationship. The framework developed addresses the effects of four competitive strategies (cost leadership and innovation-based, marketing-based, and quality- and service-based differentiation) as determinants of INVs’ international performance. In addition, internationalization duration and internationalization preparation are included as moderators of these relationships. The hypotheses were tested using a sample of 319 INVs. The findings show that marketing and quality and service differentiation strategies are associated with higher INVs’ international performance and that internationalization duration and internationalization preparation play relevant moderating effects.JEL CLASSIFICATION: M13; M16

International expansion: mediation of dynamic capabilities

PurposeTaking into account the resource-based view and the dynamic capabilities theory, the main aim of this research is to analyse how the intensification of the internationalisation process entails a solution for the problems generated by an economic crisis in the national market. To do so, we establish two specific goals. The first is to find out the mediator value of the dynamic marketing capability in the relation between the strategy of increasing markets and performance. The second is to determine if there exist differences in this relation between firms of incremental internationalisation and firms of early internationalisation, called international new ventures (INV).Design/methodology/approachThe study provides information on these problems via testing hypotheses of a conceptual model, which uses a sample of 145 Spanish export firms. The data analysis employs a structural equation modelling (SEM) through partial least squares (PLS) as a statistical instrument.FindingsThe results lead to two main conclusions: (1) in times of economic crisis, the dynamic marketing capability plays a mediator role between the increase of the number of international markets served and the international and national results; (2) the dynamic marketing capabilities bring about learning effects in the internationalisation process, which affect incremental firms and INV differently.Originality/valueThis work explores, in times of crisis, how internationalisation becomes a way out for firms to increase the levels of demand and improve their general performance. Furthermore, it also analyses the mediator role of the dynamic marketing capability in the relation between the increase of the level of internationalisation and the firm performance. In this relation, it establishes that there are significant differences in the results obtained between incremental internationalisation firms and INV, determining the notable strategic differences between the two management models when facing periods of economic recession.

The internationalization of new ventures in an emerging economy: The shifting role of industry concentration

This paper examines the influence of firm rivalry within an industry on the internationalization of new ventures in an emerging economy. Drawing on industrial organization and institutional theories, it was hypothesized that the influence of industry concentration (an index of firm rivalry) on new venture internationalization changes with the deepening of economic liberalization processes. An analysis of new ventures from 67 Indian industries from 1996 to 2014 suggests that the relation between industry concentration and new venture internationalization shifts gradually from a U-shaped relation to an inverted U-shaped relation during this time period. Implications for the generalizability of research in an emerging economy across time are discussed.

Venture capitalists and the internationalisation of new ventures – a Portuguese case study

Internationalisation is widely believed to be a very relevant dimension in companies across countries. Nevertheless, operating abroad might not be easy for new ventures. This study approached venture capitalist (VC) intervention in these firms. It comprises two main points of view: the VC's perspective and that of the INV. According to the VCs, industry knowledge, prior international experience or syndicated investments are some of the VC's most important characteristics operating abroad. However, for INVs, the VC's support is not considered important overcoming the international constraints, since there are no significant differences between backed and non-backed firms. There are a dissonance between what VCs believe are offering and what backed-firms are getting from this support. Nevertheless, this work includes a contribution of the changes in the backed firm's management team and the industry experts' role on the board. These changes are associated to the degree to which internationalisation occurs in companies.

Venture capitalists and the internationalisation of new ventures – a Portuguese case study

Internationalisation is widely believed to be a very relevant dimension in companies across countries. Nevertheless, operating abroad might not be easy for new ventures. This study approached venture capitalist (VC) intervention in these firms. It comprises two main points of view: the VC's perspective and that of the INV. According to the VCs, industry knowledge, prior international experience or syndicated investments are some of the VC's most important characteristics operating abroad. However, for INVs, the VC's support is not considered important overcoming the international constraints, since there are no significant differences between backed and non-backed firms. There are a dissonance between what VCs believe are offering and what backed-firms are getting from this support. Nevertheless, this work includes a contribution of the changes in the backed firm's management team and the industry experts' role on the board. These changes are associated to the degree to which internationalisation occurs in companies.

Predictive and effectual decision-making in high-tech international new ventures – A matter of sequential ambidexterity

This study investigates the international opportunity exploration and exploitation processes of high technology international new ventures (INVs) operating in the global medical devices sector. Drawing upon the effectuation and causation perspectives, we contribute to the micro-foundations of international entrepreneurship research in the early innovation development space by focusing on decision-making logics of techno-entrepreneurs of INVs. Specific focus is afforded to the phases of their exploration and exploitation of international opportunities leading to international new venture creation. In the pre-start-up and start-up stages of international new ventures, we find that sequential ambidexterity applies to how the subject firms manage the exploration and exploitation of opportunities in the delivery of their innovations to global markets.This research advances prior international entrepreneurship studies by focusing on the opportunity and innovation processes on the individual level. We identify different decision-making logics in the different phases and contrary to earlier findings in the international entrepreneurship (IE) area, we found causation logic to dominate the initial stages of exploration and effectuation logic, in the latter stages. Prior commercial experience presented itself as a key determining factor in the decision-making path chosen by international techno-entrepreneurs. Our study further extends the view of organizational ambidexterity by offering empirical insights into the relevance of sequential ambidexterity for understanding the processes of innovation exploration and exploitation in high-tech INVs and the decision-making logics driving these processes.

Intellectual structure of international new venture research

PurposeThis paper aims to identify the most influential papers/authors, publication outlets and theoretical and empirical research topics of the international new venture (INV) literature.Design/methodology/approachThe authors examine the intellectual structure of the INV literature using bibliometric citation and co-citation analysis. The authors focus on the 100 most cited papers in this research stream published between 1994 and 2015. In the post-hoc reading, they supplement their main bibliometric techniques with the content analysis method to shed light on some issues.FindingsThe authors find that the literature has grown significantly over the past two decades, increasing its relevancy in the academic discourse. The findings show the interdisciplinary nature of the INV literature, where we can find different research topics: Definition of INVs, measurements of “newness” and “degree of internationalization” and the characteristics of international entrepreneurs; time dimension in terms of speed of internationalization; international versus domestic new ventures; and the relationships between firm-specific advantages, international strategy and INV performance.Originality/valueThe authors identify the most influential studies and authors in the INV discipline and show its evolution from the very start to the present. They present the key topics in the literature and highlight the theoretical debates and the inconsistencies between theoretical conceptualization and measurements in the empirical work. The authors offer suggestions for promising future research directions and identify the major conceptual framework on which future research can be constructed. Overall, this study contributes to enhance the understanding of the INV phenomenon and provides useful new insights.

Initial entry speed and international performance of INVs

PurposeIn the literature concerning international new ventures (INVs), there has been a tension between the learning advantages of newness and absorptive capacity perspectives for explaining the performance influence of initial entry speed. To address this tension, this paper, through integrating both the motivation and ability to acquire foreign knowledge, proposes a theoretical model about the nonlinear relationship between INVs’ initial entry speed and international performance. Drawing upon upper echelons theory and the institution-based view, this study aims to extend the literature by developing two boundary conditions for this relationship: the moderating role of executives’ individual learning orientation and sub-national institutions.Design/methodology/approachThe authors used the latent moderated structural equations approach specific to Mplus to test the hypotheses with data on 322 Chinese INVs.FindingsThe findings indicate that INVs’ international performance will increase initially and then decrease, as they accelerate initial entry speed (an inverted U-shaped relationship), and that INVs managed by executives with a higher learning orientation and located in better sub-national institutional environments achieve greater international growth gains from moderate initial entry speed.Originality/valueThis study mainly makes contributions to the INV literature by integrating the motivation and ability to acquire foreign knowledge to offer full understanding of the effect of initial entry speed on international performance, and by elaborating on the moderating effects of executives’ individual learning orientation and sub-national institutions on this relationship.

International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities

International new ventures (INVs) contend with environmental dynamism in global markets, compelling firms to enhance their innovation and marketing capabilities. While the INV literature is growing, it is not informative as to how INVs develop and utilize dynamic capabilities to overcome resource-constraints to enhance performance. We utilize the concept of international entrepreneurship culture (IEC) to better understand how INVs advance innovation and dynamic marketing capabilities to succeed in their internationalization activities. Building on the dynamic capabilities view (DCV), we empirically examine the relationships among IEC, ambidextrous innovation, dynamic marketing capabilities, and INV performance under varying levels environmental dynamism. The findings highlight that IEC influences both ambidextrous innovation and dynamic marketing capabilities; and, together, these link to INV performance gains. Furthermore, this research finds support for the mediating effects of ambidextrous innovation and dynamic marketing capabilities in the IEC – INV performance relationship. Additionally, the results indicate an international entrepreneurial culture is of greater significance in developing ambidextrous innovation when environmental dynamism is present. The study context is a sample of 286 high-technology INVs from India, a large and dynamic emerging market.

Marketing capabilities and international new venture performance: The mediation role of marketing communication and the moderation effect of technological turbulence

Few studies have examined marketing capabilities as a source of competitive advantage in the international entrepreneurship (IE) field. Empirical evidence in the international new ventures (INVs) literature that considers the strategic interplay of marketing capabilities in developing new markets overseas is scant. Building upon the resource based view, this study develops a model of the relationships among marketing capabilities⁠—⁠competitive strategy⁠—⁠export venture performance. The sample used in this study includes INVs from an emerging country (Mexico) and provides a unique research setting for shedding additional light on these relationships. The findings suggest marketing communication mediates the relationship between marketing capabilities and competitive strategy. Moreover, this study reveals the moderating effect of technological turbulence, which strengths two relationships, one between marketing capabilities and marketing communication, and the other, between marketing communication and competitive strategy. The study findings have important implications for research on IE and new venture decision-making.

How do SMEs use support services during their internationalisation process: A comparative study of French traditional SMEs and INVs in Asia

This article integrates research on the internationalisation processes of small and medium sized enterprises (SMEs) and export assistance services to investigate how such firms use support services drawing upon a large, qualitative study of 32 French traditional SMEs and international new ventures (INVs) that have entered Asia. Our key contribution is to consider the time to internationalisation (gradual or rapid) and the stage of internationalisation (entrance or intensification) rather than export intensity alone, and to examine how support services can help SMEs internationalise. The identification of different configurations of uses leads to the development of theoretical propositions that extend existing models pertaining to support services and firm internationalisation. These findings have several important managerial implications for support services to target their offer more precisely to two types of SMEs; they also provide useful guidance for SMEs to determine which tailor-made offerings from private and public actors are most applicable to their internationalisation efforts.

Antecedents and outcomes of digital platform risk for international new ventures’ internationalization

With the growing trend of using digital platforms for internationalization, the management of digital platform risks in international markets has become a critical issue. However, academic research in this area is sparse. This study develops and tests a theoretical framework of the drivers and outcomes of digital platform risk for international new ventures (INVs). Specifically, drawing on transaction cost theory, we identify sets of antecedents of digital platform risk including product specificity, foreign market uncertainty, foreign market competition, and home market institutional voids. We examine the effect of digital platform risk on the internationalization scope of INVs. Based on a unique sample of Chinese INVs, our empirical findings indicate that digital platform risk tends to reduce INVs’ internationalization scope. However, the negative effect is mitigated by INVs’ entrepreneurial orientation. Our proposed drivers of digital platform risk are supported. The paper ultimately discusses the theoretical and managerial implications.