Handbook of Research on International Entrepreneurship
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Handbook of Research on International Entrepreneurship

Edited by Léo-Paul Dana

This unique reference book provides an array of diverse perspectives on international entrepreneurship, a new and emerging field of research that blends concepts and methodologies from more traditional social sciences. The Handbook includes chapters written by top researchers of economics and sociology, as well as academic leaders in the fields of entrepreneurship and international business. State-of-the-art contributions provide up-to-date literature reviews, making this book essential for the researcher of entrepreneurship and the internationalisation of entrepreneurs.
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Chapter 1: Emerging Paradigms of International Entrepreneurship

Léo-Paul Dana and Richard W. Wright


* Léo-Paul Dana and Richard W. Wright The global business environment is changing dramatically. Traditionally competition in international markets was the realm of large companies, while smaller businesses remained local or regional in scope. However the removal of government-imposed barriers that segregated and protected domestic markets, and recent technological advances in manufacturing, transportation and telecommunications allow even the smallest firms access to customers, suppliers and collaborators around the world. Small companies and/or entrepreneurial enterprises, both domestically and internationally, are increasingly fuelling economic growth and innovation. Reynolds (1997) noted that the recent expansion of markets has not been associated with an expanded role for larger firms. Instead, smaller firms are filling niche roles (Buckley, 1997). Globalization is having a dramatic impact on the opportunities and challenges facing small businesses. Two changes, in particular, are revolutionizing the management policies and competitive strategies of large and small firms alike. One is the demise of the nation-state as the primary macroeconomic player, or the principal unit around which international economic activity is organized and conducted. The other is the demise of the standalone firm as the primary microeconomic player, or the basic unit of competition. We will elaborate in this chapter on each of these transformations, and then discuss their particular impact on small and medium-sized enterprises (SMEs). Demise of the nation-state as the primary macroeconomic player For centuries, the nation-state was the basic unit around which international economic activity was planned, organized and conducted, regardless of the origin of firms. Even business activities...

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