Internationalization, Entrepreneurship and the Smaller Firm
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Internationalization, Entrepreneurship and the Smaller Firm

Evidence from Around the World

Edited by Marian V. Jones, Pavlos Dimitratos, Margaret Fletcher and Stephen Young

This forward-looking volume contains state-of-the-art analysis of the current research themes and challenges influencing the internationalization of SMEs.
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Chapter 11: The International Entrepreneur: Entrepreneurial Orientation of Local and Global Firms

Erik S. Rasmussen, Tage K. Madsen and Per Servais


Erik S. Rasmussen, Tage K. Madsen and Per Servais SUMMARY During the 1990s more attention has been given to the increasing number of new firms choosing to enter the international marketplace, but only little empirical insight has been supplied on how those differ from more local firms. This chapter identifies two types of new ventures – domestic new ventures (DNVs) and international new ventures (INVs) – based on the scale and scope of two value chain activities (sales and sourcing). These two categories are tested empirically in a national setting with respect to differences in their entrepreneurial orientation based on the scales of Covin and Slevin (1989) and Miller and Friesen (1982), incorporating four dimensions: innovativeness, risk-taking propensity, proactiveness, and competitive aggressiveness. For three of the nine hypotheses tested in this chapter there were no significant differences between the two types of firm. Support was found for INVs to be the first businesses to introduce products/services, administrative techniques and technologies; in addition, INVs typically initiated actions to which competitors then responded. Likewise, INVs were found to have a stronger proclivity for high-risk projects than local firms, and typically adopted a very competitive, ‘get rid of competitors’ posture. INTRODUCTION Over the 1990s there have been several studies which have focused on international new ventures (INVs), that is, smaller, entrepreneurial firms which tend to adopt a global focus from the beginning and operate in international markets from the first day of their establishment (Madsen 150 The international entrepreneur 151 and Servais, 1997; Moen and...

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