Most studies of internationalization of firms over the past forty years have focused on how firms choose markets and/or entry modes at the first attempt or at the subsequent attempts later to enter foreign markets following the first successful entry. At the same time, researchers have noted that there have been a high number of firms withdrawing from their international operations because of their failures in foreign markets. There have been a few studies dealing with the question of how firms can re-internationalize successfully after having failed in previous internationalization. However, studies dealing with the question of firm’s successful re-internationalization after having failed previously are lacking. More specifically, the knowledge of how small firms choose their products, markets, and entry strategies in re-internationalization has remained unclear. Researchers suggest that the success of small businesses depends on many factors. The key determinant is the entrepreneur himself/herself. According to school psychological characteristics, entrepreneurs would have unique values, attitudes, needs, and drives in order to succeed. Researchers also maintain that psychological traits may exhibit certain degree of entrepreneurial orientation and internationalization of small firms is directly related to personality and experience of business owners. This study investigates how psychological traits of entrepreneurs, including the need for achievement, locus of control, risk-taking propensity, and tolerance for ambiguity, influence entrepreneurs´ choices of product, markets, and entry strategy in their re-internationalization process. Our analysis suggests, entrepreneurs make different strategic choices in re-internationalization process based on their psychological traits. Moreover, experiences of entrepreneurs and foreign language knowledge play a mediating role in the relationship between psychological straits and their strategic choices and in the success of re-internationalization process.
Vaiva Stanisauskaite and Sören Kock
Network studies aim to examine relationships between companies, and broadly analyze the structure of networks. The overtime dynamics of networking process, however, remain underexplored. The aims of this study are to explore main network research streams by identifying characteristics and measures of networks and to examine how the content of networks changes through different stages of the company creation process (motivation), planning and establishment. The goal is to incorporate networks into the international entrepreneurship literature and discuss a framework for network dynamics in the firms’ creation process. In this chapter we draw a model of main network research perspectives, analyze the characteristics and the measurements of networks, and review the literature of network dynamics. Finally, we generate four propositions from theoretical discussion concerning change by showing that networks do not remain static, which should serve to guide us toward future empirical research.
The crucial role of the entrepreneur and importance of the entrepreneur’s network for entering into new markets are widely reported. Similarly, business accelerators have been a rising organizational model in the last two decades. The aim of this chapter is to identify the role of the entrepreneur and accelerator programs in the internationalization process of web-based companies through a qualitative study of nine web-based firms from different countries. This chapter argues that in the internationalization process of web-based companies, entrepreneurs are relatively young and have an international experience (from 5 to 7 years). The most essential service for web-based companies offered within an accelerator program, is mentoring along with access to networks. In order to benefit from the largest networks, web-based start-ups should join both local and foreign accelerators programs.
Selena Aureli and Mara Del Baldo
This chapter analyzes a new legislative instrument called the “network contract,” which was designed to support inter-firm cooperation, in order to verify whether this type of formal cooperation represents a relevant driver of change in small firms’ strategic orientation regarding internationalization. Results indicate that internationalization does not represent the main goal of firms participating in network contracts: Italian SMEs use this instrument to achieve different strategies of growth and long-term objectives. We found that some firms have increased their business activity abroad after joining the network. However, firms with a previous history of internationalization did not seem to have changed their approach regarding the international dimension. Consequently, the network contract is not qualified to be the most suitable tool for promoting internationalization among domestic firms, although internationalization may emerge as a by-product of inter-firm relationships.
Mirella Migliaccio and Francesca Rivetti
Internationalization is driven by either the knowledge possessed by firms; or at the same time, it can be conducted by leveraging relationships with foreign partners to access and/or acquire their knowledge. This is particularly relevant to small and medium enterprises (SMEs), mainly due to their resource constraints. This chapter assumes that, under certain circumstances, the internationalization of SMEs can give rise to, and benefit from enhancement of, their knowledge base. Starting from the main literature on internationalization, particularly from studies on Born-again Global firms, as well as knowledge acquisition and organizational learning, this chapter will analyze the internationalization path and to understand how it relates to the evolution of the firm’s knowledge through the study of Gruppo Germani S.r.l., an Italian family firm operating in the fashion industry. More specifically, this chapter’s empirical research attempts to explore the following questions: What sources of knowledge are particularly critical to the internationalization of SMEs; and how does knowledge acquisition enhance the firm’s knowledge base? To answer these questions, a longitudinal case study of Gruppo Germani was conducted. This methodology allows analyzing internationalization from the beginning for a comprehensive period of seven years. The results of this research highlight that knowledge base of the firm can constitute a stimulus to the firm’s international growth, if useful knowledge is continuously acquired and used by the company, where the main effect would be the improvement of the firm’s performance over time. Consequently, we suggest that the organization should not only leverage its knowledge base, but also identify and acquire useful external knowledge in order to progressively and successfully internationalize. Although the methodology does not allow generalization of results, this study presents some interesting findings at the end, and particularly, it intercepts some aspects that can be framed within the Born-again Global phenomenon, and extends the spectrum of “critical” events/episodes from which internationalization can begin. In our view, a firm can give rise to internationalization, starting from events that are “critical” for the enterprise because they allow the acquisition of external knowledge, especially tacit knowledge. The relative importance of external sources depends mainly on the characteristics of the knowledge base. This chapter also points out that, to make organizational learning possible, the firm should activate specific mechanisms of learning, especially articulation and codification.
Eva J.B. Jørgensen and Einar Rasmussen
The international entrepreneurship literature has identified different kinds of international new ventures (INVs) such as Born Global firms, multinational traders, export–import ventures and geographically focused ventures. While some of these firms have attracted much attention during recent years (e.g., Born Globals), other types have remained comparatively unexplored. Despite their prevalence and importance, there is still scant knowledge related to geographically focused INVs. In this study we explore the creation and internationalization of a special type of geographically focused INVs that we label border firms. Border firms develop opportunities across the border to only one adjacent foreign country. To understand more about the unique internationalization processes of these firms, we build on the existing insights in relation to new venture creation and development processes from the entrepreneurship literature which emphasizes entrepreneurial opportunities and contexts of venture location. We also make use of a theory building approach and data from various sources in seven Norwegian case companies operating across the border between Norway and Russia. This study contributes to the extension of international entrepreneurship theory, both by identifying a new type of geographically focused INV, the border firms, and by exploring what opportunities they develop. In addition, we offer propositions explaining how the opportunity development processes of border firms are related to different contexts of venture location. This chapter sheds light on some important aspects of the creation processes of firms that internationalize in only one foreign country.
Jasem Almarri, Katariina Juusola and John Meewella
The majority of institutional entrepreneurship studies focus on explaining the concept of institutional entrepreneurship through organizational factors with little reference to individual and state. This study explores how institutional entrepreneurship has shaped the development of Abu Dhabi from the 1960s until 2011. We argue that the process of development of Abu Dhabi has been the outcome of institutional entrepreneurial actions. The chapter utilizes a historical longitudinal study approach, combined with in-depth interviews. While the majority of research on institutional entrepreneurship concentrates on Western countries with established modern institutions, little is known about institutional entrepreneurship in contexts where modern institutions are absent. This research focuses on a setting in which all modern institutions were absent when the modernization of Abu Dhabi began in the 1960s. Our evidence shows that in this setting, institutional entrepreneurship manifested through an embedded form of state and individuals acting as institutional entrepreneurs and offering new insights into institutional entrepreneurship research.