International Ventures Research Articles

Proactive Environmental Strategy, Corporate Venturing, and Firm Performance

This study investigates how corporate venturing activities, including domestic venturing and international venturing, moderate the links between two types of proactive environmental strategies (PESs)—green management and green political influence—and firm performance. The results obtained by analyzing a multi-informant dataset reveal that green management has a stronger positive impact on firm performance than green political influence does. Moreover, the impact of green management on firm performance is enhanced by international venturing, whereas the insignificant direct effect of green political influence on firm performance becomes positive when domestic venturing is extensive but turns negative when a firm engages in international venturing activities. This study enriches the corporate venturing and PES literatures by offering a more nuanced framework for explaining when distinct types of PESs and corporate venturing activities when combined enhance or hinder firm performance.

International Venture Capital Attractiveness and Performance: A Neo- Configurational Perspective

Prior research suggests that market-supporting institutions are critical to attracting international venture capital (IVC), yet venture capital firms have been increasingly investing in countries characterized by institutional weaknesses. Consequently, the role of national institutions in attracting IVC firms remains unclear. We employ a neo-configurational institutional perspective to explore the institutional contexts that make countries attractive to IVC investment and favorable to IVC performance, thus illuminating the implied risk-reward tradeoffs in IVC firm location choice and ability to navigate institutional weaknesses. Utilizing fuzzy-set Qualitative Comparative Analysis, we find that a robust political system, transparent product markets, and openness to competition are key drivers of IVC investment attractiveness, but each requires complementary labor or capital market institutions. In contrast, well-functioning institutions do not necessarily lead to higher performance by IVC firms, suggesting that IVC firms may especially contribute to the success of ventures in economies with institutional weaknesses. We discuss implications for theory on venture capital firm internationalization as well as policy implications particularly relevant to the Asia-Pacific region.

International Entrepreneurial Orientation and the Intention to Internationalize

This paper presents a conceptual model of international entrepreneurial intention (IEI) through the lens of planned behavior and expectancy-valence theories. Extending the entrepreneurial intentions literature, where attitude to sustainability has started to have an increasingly important influence, to post-launch decisions, we provide an improved theoretical rationale for new venture internationalization, clarify the relationship between entrepreneurial orientation (EO) and IEI, and more closely align the international entrepreneurship literature with mainstream entrepreneurship literature. In this model, IEI is influenced by the entrepreneur’s attitudes to sustainability, learning, risk, work enjoyment, and work effort, moderated by entrepreneur’s perceived feasibility to act entrepreneurially, and determines the firm-level EO, which may culminate in the internationalization of a new or existing venture.

A neo-configurational institutional analysis of international venture capital attractiveness and performance: insights for Asia-Pacific

Prior research suggests that market-supporting institutions are attractive to international venture capital (IVC), yet paradoxically VC firms increasingly invest in countries characterized by institutional weaknesses. In this study, we explore the institutional contexts that make countries attractive to IVC investment and favorable to IVC performance, thus illuminating the implied risk-reward tradeoffs in IVC firm location choice and ability to navigate institutional weaknesses. Utilizing fuzzy-set Qualitative Comparative Analysis (fsQCA), we find four distinct configurations of institutions associated with IVC attractiveness. Each configuration allows for some institutional weaknesses, enabling us to elaborate theory on institutional complementarities and substitutions that drive IVC investment. Further, we find that IVC firms have performed well even in countries with pervasive institutional weaknesses, suggesting that IVC firms may uniquely contribute to the success of new ventures in such institutional contexts. We discuss implications for theory and offer policy and managerial recommendations particularly relevant to IVC activity in the Asia-Pacific region.

Emerging market multinationals’ firm-specific advantages, institutional distance, and foreign acquisition location choice

How do emerging market multinational enterprises’ (EMNEs’) firm-specific advantages (FSAs) drive their foreign acquisition location choice? We theorize EMNE FSAs as important contingencies influencing the effect of institutional distance (ID) on EMNE foreign acquisition location choice. As a baseline main effect, we expect ID to positively influence EMNE location choice, as well-developed institutionally distant host-country environments are attractive to EMNEs. This effect is reduced by EMNE FSAs shaped by home-country conditions, such as success in navigating institutional voids and superior human resource management, which are more competitive in institutionally closer countries. Conversely, this effect is heightened by EMNE FSAs shaped by investment choices for knowledge and for international venturing. Based on analyses of 278 EMNE acquisitions by EMNEs from nine emerging markets, our findings largely support our hypotheses. Our study extends research on EMNE FSAs, which often have been compared only with those of developed-country multinational enterprises.

Proactive environmental strategy and firm performance: The moderating role of corporate venturing

This article investigates how two types of proactive environmental strategies (PESs) – proactive green management and green political influence – affect firm performance directly and under varying conditions characterising corporate venturing activities (domestic versus international). The results obtained by analysing a multi-informant dataset reveal that proactive green management has a stronger positive impact on firm performance than green political influence does. Moreover, international venturing has a greater positive moderating effect than domestic venturing on the link between proactive green management and firm performance, whereas, domestic venturing has a stronger positive moderating effect than international venturing on the relationship between green political influence and firm performance. This article contributes by differentiating between two important forms of corporate venturing, by distinguishing two important types of PESs and by offering a more granular framework for aligning corporate venturing activities with PESs.

How are corporate ventures evaluated and selected?

This study provides a fine-grained analysis of the decision-making process and criteria underling the evaluation and selection of nascent corporate ventures. By integrating a small sample case-based analysis and the examination of a longitudinal dataset comprising 14 years of archival data, it explores the selection and funding process of early-stage entrepreneurial initiatives supported by the internal corporate venture unit of a major energy company. Its findings extend prior conceptualizations of the internal venture selection process, uncovering differences in the relevance of the criteria used to evaluate ventures at different stages.

Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance

Despite of the importance of entrepreneurial orientation (EO) in international performance, we have yet to obtain sufficient insights into how and why a firm’s EO strengthens international performance. This article focuses on the underlying mechanism through which EO influences international performance, and develops a model of EO → knowledge creation → international venturing, and new product development decision-making flexibility → international performance linkages. Following a survey of 141 Taiwanese electronics firms, the results provide support for our proposed mediating process behind the EO–international performance link. These findings offer several theoretical and practical implications in the entrepreneurship and international business areas.

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.

The influence of additive manufacturing on early internationalization: considerations into potential avenues of IE research

Novel technologies are key enablers for early internationalization. Researchers and experts imply that industry 4.0 (i4.0) technologies will be exploited by existing firms and new ventures to develop radical business models and market revolutionizing products and services, leading to the disruption of global markets. Additive manufacturing (AM) is currently emerging as one of many disruptive i4.0 technologies. This paper provides the first stepping stone for research into the influence of AM on internationalization in the context of new venturing. Reflecting on current technological trends in the global industrial ecosystem, this paper proposes four themes of particular relevance in guiding future research into the influence of AM on new venture internationalization. Firstly, we indicate that research is needed into the emergence of expert AM service providers and the consequent lurking disruption of the current global value chain. Secondly, we suggest research focused on the role of AM in facilitating increased customer interaction and how this impacts networking, which is a key to early internationalization. Thirdly, we highlight the need for research that acknowledges the current challenges to established legislation and institutions to provide insights into how AM technologies influence international new ventures in the age of i4.0. Fourthly, we propose that research is needed into how AM technologies are used by INVs to overcome and capitalize on regional difference in developing products and services. The paper proceeds to conclude on and summarize these themes. Lastly, further less developed avenues of research are explored.

Foreign venture capital firms and internationalization of ventures

PurposeThe purpose of this study is to examine how foreign venture capital firms affect the internationalization of investee ventures and their performance. The author argues that, as influential stakeholders, foreign venture capital (VC) firms engage in strategic decisions of investee ventures and may positively contribute to ventures’ business in foreign markets.Design/methodology/approachThe study examines 551 VC-backed ventures that went public between 2000 and 2014 in the US. Logistic regressions and generalized linear models are used to test hypotheses, and the two-stage approach is used to address a potential endogeneity issue.FindingsIn the empirical results, the author finds that foreign VC investment is positively associated with the internationalization of ventures in terms of both the likelihood of internationalization and foreign sales intensity. In addition, the author finds that internationalization and foreign sales intensity are positively associated with firm performance when a venture is backed by a foreign VC firm.Originality/valueThis study makes important theoretical and empirical contributions to the international entrepreneurship literature by highlighting the role of foreign VC investors on internationalization of ventures.

Comportamento Empreendedor de Empresas Maduras na Internacionalização: Evidências de um Setor de Alta Tecnologia

The study investigates the international trajectories of leading entrepreneurial firms in the Brazilian software industry using an international entrepreneurship perspective. The following research question guided the study: How does a mature entrepreneurial firm’s international expansion evolve and how does it differ from a typical international new venture’s path? The research adopts the case study method of investigation. The study analyzes three cases of leading high-tech Brazilian firms in the software development industry, whose internationalization processes occurred at least ten years after inception. The analysis uses a cross-case comparison, followed by a pattern-matching analysis with the extant literature on international new ventures and born globals. The results show that the late internationalization of the mature entrepreneurial firms examined in this study differs markedly from that of INVs or BGs on the following aspects: risk taking, competitive strategies, international vision since inception and entrepreneur´s previous international experience. Nevertheless, the two types of firm have in common innovativeness, proactiveness and networking capabilities.

New developments in optical sensing technology: an interview with Adrien Desjardins.

Adrien has a PhD from Harvard and the Massachusetts Institute of Technology (both MA, USA) in biomedical engineering and biophysics, with a specific focus on cardiovascular devices, fiber optic sensing and optical coherence tomography. After his PhD, he led technical developments in an internal venture at Philips Research (Eindhoven, Netherlands) to develop devices with integrated optical sensors and brought this technology from benchtop prototypes to in vivo human studies. In addition to his responsibilities at Echopoint Medical (London, UK) where he is Chief Technology Officer, Adrien is also is a Professor of Biomedical Engineering at University College London (London, UK), where he leads the interventional devices group with a vision to develop novel methods for performing physiological measurements and imaging with minimally invasive devices. He has over 52 patent applications and granted patents.

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.

Between domestic and international new ventures: the relevance of entrepreneurs' and firms' characteristics

We investigate the relevance of both the characteristics of entrepreneurs and those of firms as determinants of new international ventures. Our investigation is built on the knowledge-based view and upper-echelons theories. Using data from a cross-sectional survey of 4193 new ventures, domestic and international, we combine the net effects from structural equation modelling (SEM) with the combinatorial effects from a fuzzy set qualitative comparative analysis (fsQCA). The findings show that both the firms' and entrepreneurs' characteristics are relevant to a new venture becoming international. The fsQCA's results show that both high and low values for the entrepreneurs' personality characteristics influence new ventures going international.

Risk, capabilities, and international venture capital syndication in China

PurposeThe purpose of this paper is to advance a holistic model of venture capital (VC) firms’ syndication decisions in an emerging economy. When considering syndication with local partners, VC firms consider multiple sources of risk related to firm-specific characteristics (life-cycle, operational and political). In conjunction with these risk factors, they also consider their own capabilities, namely, their knowledge breadth and knowledge depth. Knowledge breadth stems from a VC firm’s network position and knowledge depth is a result of its prior industry expertise. Together, these capabilities have competing impacts on VC firms’ desire to syndicate. From one perspective, VC firm capabilities may help deal with risk such that syndication may not be perceived as necessary. Alternatively, VC firm capabilities may signal attractiveness to a local partner and allow the VC firm to syndicate more easily.Design/methodology/approachFuzzy-set qualitative comparative analysis is conducted on a sample of 111 US VC firms investing in China between 1993 and 2010.FindingsLower VC firm capabilities are associated with a tendency not to syndicate with a local partner when venture risk factors are low. This pattern may arise because of such VC firms’ relative lack of experience with partnership management or weaker appeal to local partners.Originality/valueThis study is one of the earliest attempts to develop a neo-configurational perspective within the VC literature and thus contributes to a more nuanced understanding of international VC firms’ strategic behaviour in emerging economies by examining multiple risks and capabilities simultaneously and in conjunction.

Emotional intelligence and venture internationalization during economic recession

PurposeThe purpose of this paper is to identify the factors related to entrepreneurs’ emotional intelligence that trigger the choice of venture internationalization after locally suffering the shock of an economic recession in a developing economy.Design/methodology/approachThe primary survey data were collected from 226 Uruguayan entrepreneurs and included their psychological traits and human capital characteristics after the most recent global financial crash of 2008. Personal interviews were conducted, and a “Trait Meta-Mood Scale” instrument (i.e. TMMS-12) was specifically designed for the measurement of emotional intelligence. Logistic regression analyses were conducted to test the hypotheses.FindingsThis study demonstrates that in disadvantaged environments, such as developing regions suffering from a severe global crisis, the early internationalization process of a new firm is mainly triggered by entrepreneurs’ emotional intelligence attributes rather than conventional human capital-related attributes. Moreover, social–emotional competences are more significant than personal–emotional competences to explain entrepreneurs’ exporting behaviour in such an adverse context.Originality/valueThe effect of emotional intelligence on venture internationalization is investigated in situations in which entrepreneurs are pressured to pursue risk-bearing strategies, pushed by a disrupting shock that weakens the national economic condition (e.g. an economic recession). While previous findings have highlighted the importance of entrepreneurs’ human capital attributes in their entering foreign markets, few studies have analysed how the emotional intelligence competences of entrepreneurs lead them to internationalize. This study fills this gap in the literature on entrepreneurial behaviour by focussing on the emotional, cognitive and psychological qualities of entrepreneurs to explain their exporting business decisions.

New venture internationalization: The role of venture capital types and reputation

This study examines how different types of venture capital relate to new venture internationalization. Using a sample of 646 U.S. new ventures that executed IPOs between 1995 and 2010, we find that ventures with foreign or corporate venture capital have higher levels of international intensity. We also investigate the moderating role of VC reputation on the relationship between foreign venture capital and international intensity and corporate venture capital and international intensity. Our results suggest that VC reputation weakens the positive relationship between corporate VC and international intensity.

Evaluation of acetic acid and ethanol concentration in a rice vinegar internal venturi injector bioreactor using Fourier transform near infrared spectroscopy

In the process of fermenting rice vinegar, the concentration of acetic acid and ethanol concentration must be measured for monitoring of the total concentration. Near infrared spectroscopy has been used to rapidly monitor the concentration of acetic acid and ethanol concentration daily during 10 cycles of the fermentation process. The model was developed using partial least squares regression. For predicting concentration of acetic acid with near infrared spectroscopy, the coefficient of determination ( R2), root mean square error of calibration, root mean square error of cross validation, ratio of standard error of validation to standard deviation, and bias was 0.96, 2.30 g L−1, 2.44 g L−1, 1.11 g L−1, and 5.56, respectively. For ethanol concentration, the value of R2, root mean square error of calibration, root mean square error of cross validation, bias and ratio of prediction to deviation were predicted to be 0.94, 3.15 g L−1, 2.73 g L−1, −0.40 g L−1, and 4.04, respectively. However, both models provided fair performance when tested with an external set of samples, indicating that the models could be applied for rough screening.