Table of Contents

Handbook of Research on International Entrepreneurship Strategy

Handbook of Research on International Entrepreneurship Strategy

Improving SME Performance Globally

Research Handbooks in Business and Management series

Edited by Pervez N. Ghauri and V. H. Manek Kirpalani

This impressive Handbook provides a dynamic perspective on the international entrepreneurial strategies of SMEs, including the role and experience of their founders, as well as the collaboration of these SMEs in networks with larger firms. The expert contributors from all over the world and the editors explore the origin and evolution of internationalizing SMEs, the changing history and the future outlook of this sector. They study the effects of different cultures on the origin and growth of entrepreneurship and SMEs. The Handbook also outlines the various types of Born Globals that emerge from different parts of the world.

Chapter 6: Where and when? A longitudinal study of export behaviour of new ventures

Geir Gripsrud, Auke Hunneman and Carl Arthur Solberg

Subjects: business and management, entrepreneurship, international business, strategic management, economics and finance, international business

Abstract

Based on a rich database of all 2390 Norwegian new ventures established in 2003 that export in the period 2003–11, we explore two research questions: (1) Do new ventures follow the incremental internationalization process by starting to export to countries close to the domestic market and gradually expanding to more geographically distant markets? (2) Does the speed of export start-up matter for the firms’ future export success and expansion? Both these research questions are answered with a yes. In particular, the speed of export start-up reveals interesting patterns. Firms starting to export already in the first year of operation are more successful in exporting than firms starting a year later. The latter firms, in turn, are more successful than those starting in year three, and those starting in year three are more successful than firms starting to export in year four. We conjecture that success of first-year exporters is mainly explained by better resources (management, products and networks). We also propose that the later the firm starts exporting the more it is engrained in idiosyncrasies of the domestic market, constraining its perception of opportunities abroad.

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