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

Improving SME Performance Globally

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.
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Chapter 5: Market strategy of international new ventures originating from a small and open economy

Salman Kimiagari, Peter Gabrielsson, Mika Gabrielsson and Benoit Montreuil


The market strategies of international new ventures (INVs) have not been the topic of extensive study. This chapter investigates these strategies and examines the factors that affect them. It develops a model and propositions based on an in-depth case study of a firm from a small and open economy. The INV firm can select from a country diversification, customer diversification or a hybrid strategy. Our case firm showed that pursuit of a hybrid strategy, however, proved to be challenging. The results further indicate that market strategy is affected by the learning advantages of newness, an international management orientation and the extent to which effectuation logic was used. Psychic distance does not seem to be an important concern. The findings have important implications for international entrepreneurship scholars and practitioners.

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