Exploring the Role of Industry Structure in New Venture Internationalization (original) (raw)
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Asia Pacific Journal of Management, 2020
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. Keywords Emerging economies. Industry concentration. New venture internationalization. India Research on new venture internationalization emerged in the late 1980s and grew rapidly as scholars strove to understand the antecedents and implications of this new phenomenon that appeared to contradict traditional international business frameworks (Oviatt & McDougall, 1994). While the bulk of early research focused on the internationalization of new ventures in developed countries, there has been an evolving, albeit
A comparison of international and domestic new ventures
2003
were examined using a sample of 214 IPO new ventures (ventures 6 years old or less). INVs were found to be significantly different on the basis of their entrepreneurial team experience, strategy, and industry structure. Specifically, the entrepreneurial team of INVs exhibited higher levels of previous international and industry experience. The strategies of INVs were more aggressive, and they operated in more channels of distribution than did DNVs. INVs competed on the basis of differentiation, placing greater emphasis on product innovation, quality, service, and marketing as strategic weapons. In addition, INVs were more likely than DNVs to operate in industries characterized by a high degree of global integration.
A Dynamic Approach to the Development of International New Ventures
The competitive and organizational behavior of new firms has changed dramatically. Firms do not need to be big to internationalize, International New Ventures (INV) are a reality. But, they are characterized by the liability of newness and the liability of smallness. Since the nineties, scholars have devoted considerable attention to this phenomenon, but no one explains how these companies can overcome these constraints and internationalize. In this context, this paper uses a multilevel analysis, resulting in a more integrative framework. This approach extends the literature including, at the same time, the firm perspective (following the studies developed in Uppsala and the RBV), the organizational network approach and the international entrepreneur perspective. It has three units of observation and one of analysis. To understand INV dynamics it seems very important to observe, study and relate firm with network and entrepreneur. This research finds out that the entrepreneur plays a particularly important role in these new companies, ill-equipped (of relations, resources and knowledge), but the entrepreneur does not act in a vacuum; he is part of a firm integrated in a network. To internationalize early firms must use indirect knowledge, resources and history from organizational networks and from the entrepreneur.
Intellectual structure of international new venture research
Multinational Business Review, 2019
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 ...
Internationalisation for Survival: The Case of New Ventures
Management International Review, 2014
The aim is to deepen our understanding about the internationalisationsurvival relationship in the case of new ventures in traditional manufacturing sectors. Hypotheses were tested through Cox's proportional hazard regressions on a sample of 3,350 firms aged 10 years or less, from the textile-clothing and footwear industry in Spain. A vast majority of new ventures that were both established and closed down over that time are purely domestic firms. That means, a firm increases its likelihood of survival when it becomes international. The highest failure risk relates to those new ventures which are territorially agglomerated and are domestically oriented. Internationalisation is an unconditional strategy for surviving in the case of new manufacturing ventures. In addition, location and efficiency in the activity both matter when operating in international markets. Statistical tests show that an interactive effect of agglomeration and internationalisation exists, while no support for the interaction between age and internationalisation is found. Future research should investigate the trade-off between growth and survival forces to determine the optimum moment to go international and to characterise the strategic choices followed by those new ventures that survive longest.
Born local: Toward a theory of new venture's choice of internationalization
This manuscript offers a theory regarding two distinct avenues to new venture internationalization: a direct path described in much of the extant literature and an intermediated one in which new ventures and multinational firms create symbiotic relationships in order to expand internationally. The term ''born local'', as opposed to ''born global'', describes how new ventures are created from knowledge spillovers and other resources in a geographically bounded environment. The theory suggests that the greater the number of value chain activities and the greater the number of countries involved, the more likely that the new venture will pursue the intermediated mode of internationalization. We suggest that new ventures frequently specialize and use existing MNEs as conduits for international expansion; however the greater the perceived ex-post costs of protecting intellectual property, transaction costs, and extraction costs related to holdup , agency, and monopoly rents, the more likely the new venture will pursue a direct mode of internationalization.