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R. Isil Yavuz, Harry Sapienza and Youngeun Chu

This study examines the effect of resource flexibility on the early internationalization and performance of international new ventures. We test our hypotheses using data from the Kauffman Firm Survey on 2424 newly founded new ventures in the USA. After controlling for the amount of total resources, we show that new ventures with more flexible resource configurations tend to internationalize earlier. In addition, we also find that resource flexibility helps international new ventures to perform better in terms of both international sales intensity and short-term revenue growth. However, we find no significant effect of flexible resource on the short-term survival of international new ventures.