84 research outputs found

    Is More Always Better? Risk Trade-offs among Internationalizing New Ventures

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    Purpose – The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance. Design/methodology/approach – New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test the hypotheses, a regression using Heckman selection was run using a sample of 210 US-based, publicly held ventures in high-technology industries. Findings – The results confirm that when higher levels of internationalization are coupled with either a low emphasis on product innovation or larger size, the negative returns are mitigated and actually become positive. Research limitations/implications – A key implication lies in recognizing the role of risk management for internationalizing ventures. Future research could benefit by testing for generalizability in other countries as well as among privately held ventures. Practical implications – To manage the trade-offs associated at higher levels of internationalization, ventures need to maintain a low emphasis on product innovation or meet a threshold in terms of size. Originality/value – The value of this research lies in better understanding how ventures are able to overcome rising costs at higher levels of internationalization

    Venture Capitalists as Catalysts to New Venture Internationalization: The Impact of Their Knowledge and Reputation Resources

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    Venture Capitalists (VC) play an important role in influencing the strategic direction of the firms in which they invest. The findings of this study reveal that VCs can serve as a catalyst to new venture internationalization through the provision of knowledge and reputation resources. Furthermore, the international knowledge of a VC is more positively related to new venture internationalization when the VC is also reputable

    Beating Competitors to International Markets: The Value of Geographically Balanced Networks for Innovation

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    Being able to launch new products internationally is critical for technology-based ventures to recoup the high costs of R&D and to exploit their innovations fully. Despite the widely recognized importance of networks within the innovation development process, there appear to be contrasting viewpoints as to whether local or foreign network partners contribute more in the race to internationalize. Drawing on the theoretical underpinnings of comparative advantage, we propose and empirically confirm that ventures pursuing a balance of local and foreign network connections for the development of an innovation are able to bring the product more rapidly into the international marketplace. Furthermore, both innovation complexity and industry clockspeed heighten the importance of geographic network balance to the speed of product internationalization

    International entrepreneurship in SMEs: a study of influencing factors in the textile industry

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    The final publication is available at Springer via http://dx.doi.org/10.1007/s11365-012-0242-3International entrepreneurship is an incipient research area with a rapidly increasing body of knowledge and contributions. An important part of this literature has focused on the analysis of the contributing factors to IE development. From these studies, this work attempts to analyse and validate through an integrative model the effect on this construct in SME of some of the main factors proposed by the literature such as Skills and Competences, Attitude and Proactiveness, Creativity and Innovation, Networking, Employees and Activity. To proceed with this aim, we conducted an empirical research focused on 174 textile SME in Spain. The results obtained confirm a positive relationship between the studied factors and the IE development. 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    High-potential concepts, phenomena, and theories for the advancement of international entrepreneurship research

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    The purpose of this special issue on international entrepreneurship (IE) is to explore concepts, phenomena, and theories with high potential to advance the field. Rather than identify concepts from the extant IE literature, we took the more novel approach of challenging leading researchers to write about IE-relevant issues through the perceptual lenses of their own, or other scholarly domains. Through this process of cross-fertilization, our intention was to generate new topics and fresh insights, alternative arguments, and constructs. The issue's seven articles enrich concepts and theories for IE; advance complementary, or competing arguments that underpin IE thinking; and open the IE dialogue to issues of current global significance
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