Internationalisation for Survival: The Case of New Ventures (original) (raw)
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Running faster and jumping higher? Survival and growth in international manufacturing new ventures
International Small Business Journal: Researching Entrepreneurship, 2018
Going international early is increasingly the choice of new ventures in manufacturing industries. However, does earliness provide a positive outcome for internationalisation? To answer this, we have longitudinally analysed 3181 manufacturing new ventures established between 2002 and 2012. Using Cox regressions, we found that the 124 late internationals had the lowest risk of failure, while the 229 early internationals could not compensate for their mortality risk with significantly higher levels of growth in the post-internationalisation period. We discuss why an early internationalisation is more perilous than beneficial and provide some suggestions for the internationalisation of new ventures in these industries.
The survival of international new ventures
International new ventures (INVs) are a popular mode of entry into foreign markets. INVs, those companies that enter foreign markets at inception, often suffer the two liabilities of newness and foreignness, which may increase the odds of their failure. This paper empirically examines the survival of INVs by comparing them to other sequential modes of international operations (e.g., acquisitions). Data from 275 British firms show that INVs have lower unconditional survival probabilities than other modes of foreign market entry. Our analyses also show that differences in survival probabilities disappear when the firms’ competitive strategies are considered.
Significance of the speed of internationalisation for born global firms - a multiple case study approach, 2016
This article analyses the significance of the speed of internationalisation for born global firms (BGFs). In this multiple case study, BGFs are defined as high-tech start-up firms (HSFs) from a small and open economy (SMOPEC) like Switzerland. The theoretical framework consists of the Uppsala internationalisation process model and BGF theory. A sample of 20 subject matter experts (SME) is interviewed. The results of this study show that the significance of the speed of internationalisation of HSFs is considered essential for the survival of HSFs from SMOPECs. Consequently, all SMEs included early and fast internationalisation in their business plans and built their business models accordingly. Biographical notes: Michael Neubert is a faculty member, teaching International Management, of ISM International School in Paris and a lecturer at FH Vorarlberg and Universidad Paraguayo Alemana. He is the CEO of the consulting firm C2NM LLC and an investor in high-tech start-up firms.
Exploring the Role of Industry Structure in New Venture Internationalization
Entrepreneurship Theory and Practice, 2007
While we have gained considerable knowledge since the late 1980s regarding the phenomena of international new ventures, less is known about the influence of industry structure on these ventures. In the present paper, we draw on literature from industrial economics, international business and entrepreneurship to identify industry structure variables that fit within the theoretical framework of international new ventures. We then offer propositions as to how the identified industry structure variables individually and jointly influence the likelihood of new venture internationalization.
A CAPABILITIES PERSPECTIVE ON THE EFFECTS OF EARLY INTERNATIONALIZATION ON FIRM SURVIVAL AND GROWTH.
2006
Abstract Recent critiques of internationalization process models question the wisdom of delaying internationalization. Internationalizing late allows firms to assemble resources and gain experience but also allows inertia to develop. We resolve this tension by positing that internationalization has differing effects on firm survival and growth. These effects are moderated by organizational age, managerial experience, and resource fungibility.
Prevalence and longitudinal trends of early internationalisation patterns among Canadian SMEs
International Marketing Review, 2012
Purpose: Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most Born Global firms turn out to be Born Regional and that the proportion of true Born Global firms would be overestimated. Moreover, literature claims that the proportion of Born Global firms increases over time due to macroeconomic trends. We investigate these assumptions by providing a dynamic perspective on the prevalence of different types of internationalization patterns among Canadian small and medium-sized exporters (SMEs). Design/methodology/approach: To empirically examine the ideas above, we constructed a unique large-scale longitudinal (1997)(1998)(1999)(2000)(2001)(2002)(2003)(2004) dataset. A multinomial logit model is employed to estimate a firm's predicted probability, ceteris paribus, of choosing different internationalization patterns: Born Global, Born Regional, and Gradual Internationalization. Findings: We find that Born Global firms indeed account for a smaller proportion than Born Regional firms (16% vs. 27%). However, we find evidence that Born Globals and Born Regionals are increasingly established over time and that macroeconomic factors seem to account for this development at least partially.