Skip to main content
SpringerLink
Log in
Book cover

International Conference of Software Business

ICSOB 2012: Software Business pp 114–127Cite as

The Emergence of an International New Software Venture from an Emerging Economy

  • Conference paper

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 114))

Abstract

This study is positioned at the intersection of legitimation and international entrepreneurship theories. It is a longitudinal ethnographic case study that explores the process of emergence of an international new software venture from an emerging economy and the effect this venture has on the process of industry creation in that economy. Data were collected over a two year period, 2010-2011, via in-depth interviews, observations, and unobtrusive data. Data analysis reveals three different contexts in which legitimation took place: legitimation of the new venture domestically and internationally, and legitimation of the new industry. To acquire cognitive legitimacy and socio-political legitimacy and successfully internationalize, an international new venture needs to design a robust business model targeting both internal and external stakeholders, engage in persuasive argumentation invoking familiar cues and scripts, promote and defend incentives and operating mechanisms in political negotiations, and overcome the country-of-origin effect by pursuing a technology legitimation strategy.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   39.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Coviello, N., McDougall, P., Oviatt, B.: The Emergence, Advance and Future of International Entrepreneurship Research - An Introduction to the Special Forum. J. Bus. Venturing 26, 625–631 (2011)

    Article  Google Scholar 

  2. Turcan, R.V., Mäkelä, M., Sørensen, O., Rönkkö, M.: Mitigating Theoretical and Sampling Biases in the Design of Theory-Building Research in International Entrepreneurship. Int. Ent. Manage. J. 6, 399–417 (2010)

    Article  Google Scholar 

  3. Yamakawa, Y., Peng, M., Deeds, D.: What Drives New Ventures to Internationalize from Emerging to Developed Economies? Ent. Theory Practice 32, 59–82 (2008)

    Article  Google Scholar 

  4. Jones, M., Coviello, N., Tang, Y.: International Entrepreneurship Research (1989-2009): A Domain Ontology and Thematic Analysis. J. Bus. Venturing 26, 632–659 (2011)

    Article  Google Scholar 

  5. Turcan, R.V., Marinova, S., Rana, M.: Empirical Studies on Legitimation Strategies: A Case for International Business Research Extension. In: Devinney, T., Pedersen, T., Tihanyi, L. (eds.) Institutional Theory in International Business, Advances in International Management, vol. 12 (forthcoming, 2012)

    Google Scholar 

  6. Oviatt, B., McDougall, P.: Toward a Theory of International New Ventures. J. Int. Bus. Stud. 24, 45–64 (1994)

    Article  Google Scholar 

  7. Aldrich, H., Fiol, M.: Fools Rush In? The Institutional Context of Industry Creation. Acad. Manage. Rev. 19, 645–670 (1994)

    Google Scholar 

  8. Turcan, R.V.: Entrepreneur-Venture Capitalist Relationship: Mitigating Post-Investment Dyadic Tensions. Int. J. Entr. Finance 10, 281–304 (2008)

    Google Scholar 

  9. Khanna, T., Paleru, K.: Why Focused Strategies May Be Wrong for Emerging Markets. Harvard Bus. Rev. 75, 41–51 (1997)

    Google Scholar 

  10. Tornikoski, E., Newbert, S.: Exploring the Determinants of Organizational Emergence: A Legitimacy Perspective. J. Bus. Venturing 22, 311–335 (2007)

    Article  Google Scholar 

  11. Stinchcombe, A.: Social Structure and Organizations. In: March, J. (ed.) Handbook of Organizations. Rand McNally, Chicago (1965)

    Google Scholar 

  12. Zaheer, S.: Overcoming the Liability of Foreignness. Acad. Manage. J. 38, 341–363 (1995)

    Article  Google Scholar 

  13. Zahra, S.: The Theory of International New Ventures: A Decade of Research. J. Int. Bus. Stud. 36, 20–29 (2005)

    Article  Google Scholar 

  14. Suchman, M.: Managing Legitimacy: Strategic and Institutional Approaches. Acad. Manage. Rev. 20, 571–610 (1995)

    Google Scholar 

  15. Ranger-Moore, J., Banaszak-Holl, J., Hannan, M.: Density-Dependent Dynamics in Regulated Industries: Founding Rates of Banks and Life Insurance Companies. Admin. Sci. Q. 36, 36–65 (1991)

    Article  Google Scholar 

  16. Delmar, F., Shane, S.: Legitimating First: Organizing Activities and the Survival of New Ventures. J. Bus. Venturing 19, 385–410 (2004)

    Article  Google Scholar 

  17. North, D.: Institutions, Institutional Change and Economic Performance. Harvard University Press, Cambridge (1990)

    Book  Google Scholar 

  18. Turcan, R.V.: External Legitimation in International New Ventures: Toward the Typology of Captivity. Int. J. Ent. Small Bus. 15, 262–283 (2012)

    Article  Google Scholar 

  19. Santos, F., Eisenhardt, K.: Constructing Markets and Shaping Boundaries: Entrepreneurial Power in Nascent Fields. Acad. Manage. J. 52, 643–671 (2009)

    Article  Google Scholar 

  20. Navis, C., Glynn, M.A.: How New Market Categories Emerge: Temporal Dynamics of Legitimacy, Identity, and Entrepreneurship in Satellite Radio, 1990-2005. Admin. Sci. Q. 55, 439–471 (2010)

    Article  Google Scholar 

  21. Zimmerman, M., Zeitz, G.: Beyond Survival: Achieving New Venture Growth by Building Legitimacy. Acad. Manage. Rev. 27, 414–431 (2002)

    Google Scholar 

  22. Zott, C., Huy, Q.: How Entrepreneurs Use Symbolic Management to Acquire Resources. Admin. Sci. Q. 52, 70–105 (2007)

    Article  Google Scholar 

  23. Turcan, R.V.: How International New Ventures Acquire Legitimacy. Paper presented at the European International Business Academy, Bucharest, Romania, December 08-10 (2011)

    Google Scholar 

  24. Greenwood, R., Suddaby, R., Hinings, C.: Theorizing Change: The Role of Professional Associations in the Transformation of Institutionalized Fields. Acad. Manage. J. 45, 58–80 (2002)

    Article  MATH  Google Scholar 

  25. Lounsbury, M., Crumley, E.: New Practice Creation: An Institutional Perspective on Innovation. Org. Stud. 28, 993–1012 (2007)

    Article  Google Scholar 

  26. Maguire, S., Hardy, C., Lawrence, T.: Institutional Entrepreneurship in Emerging Fields: HIV/AIDS Treatment Advocacy in Canada. Acad. Manage. J. 47, 657–679 (2004)

    Article  Google Scholar 

  27. Hargadon, B., Douglas, Y.: When Innovations Meet Institutions: Edison and the Design of the Electric Light. Admin. Sci. Q. 46, 476–501 (2001)

    Article  Google Scholar 

  28. Glynn, M., Marquis, C.: When Good Names Do Bad: Symbolic Illegitimacy in Organization. Res. Sociol. Org. 22, 147–170 (2004)

    Article  Google Scholar 

  29. Abbott, A.: Time Matters: On Theory and Method. The University of Chicago Press, Chicago (2001)

    Google Scholar 

  30. Dyer, G., Wilkins, A.: Better Stories, Not Better Constructs, to Generate Better Theory: A Rejoinder to Eisenhardt. Acad. Manage. Rev. 16, 613–619 (1991)

    Google Scholar 

  31. Drori, I., Honig, B., Sheaffer, Z.: The Life Cycle of an Internet Firm: Scripts, Legitimacy, and Identity. Ent. Theory and Practice 33, 715–738 (2009)

    Article  Google Scholar 

  32. Miles, M., Huberman, M.: Qualitative Data Analysis: An Expanded Sourcebook. Sage, London (1994)

    Google Scholar 

  33. Pettigrew, A.: Longitudinal Field Research on Change: Theory and Practice. Org. Sci. 1, 267–292 (1990)

    Article  Google Scholar 

  34. Doing Business in a more Transparent World, www.doingbusiness.org

  35. The Heritage Foundation, www.heritage.org

  36. The World Economic Forum, www.weforum.org

  37. Webb, E., Campbell, D., Schwartz, R., Sechrest, L.: Unobtrusive Measures. Sage Publications, Thousand Oaks (2000)

    Google Scholar 

  38. Dubin, R.: Theory Development. Free Press, New York (1978)

    Google Scholar 

  39. Glaser, B.: Theoretical Sensitivity. Sociology Press, Mill Valley (1978)

    Google Scholar 

  40. Merton, R.: Social Theory and Social Structure. Free Press, New York (1957)

    Google Scholar 

  41. Isaacson, W.: Steve Jobs: The Exclusive Biography. Little Brown, London (2011)

    Google Scholar 

  42. Moldovan Association of Private ICT companies, www.ict.md

  43. Cuervo-Cazurra, A., Maloney, M., Manrakhan, S.: Causes of the Difficulties in Internationalization. J. Int. Bus. Stud. 38, 709–725 (2007)

    Article  Google Scholar 

  44. Storey, D.: Understanding the Small Business Sector. Routledge, London (1994)

    Google Scholar 

  45. Berger, P., Luckmann, T.: The Social Construction of Reality. Doubleday, New York

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Business and Management, Aalborg University, Fibigerstraede 10, 9220, Aalborg, Denmark

    Romeo V. Turcan

  2. Henley Business School, Whiteknights, Reading, RG6 6UD, United Kingdom

    Norman M. Fraser

Authors
  1. Romeo V. Turcan
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Norman M. Fraser
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. MIT Sloan School of Management, 50 Memorial Drive, 02142-1347, Cambridge, MA, USA

    Michael A. Cusumano

  2. Babson College, 02457-0310, Babson Park, MA, USA

    Bala Iyer

  3. Boston University, 02215, Boston, MA, USA

    N. Venkatraman

Rights and permissions

Reprints and permissions

Copyright information

© 2012 Springer-Verlag Berlin Heidelberg

About this paper

Cite this paper

Turcan, R.V., Fraser, N.M. (2012). The Emergence of an International New Software Venture from an Emerging Economy. In: Cusumano, M.A., Iyer, B., Venkatraman, N. (eds) Software Business. ICSOB 2012. Lecture Notes in Business Information Processing, vol 114. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-30746-1_10

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-30746-1_10

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-30745-4

  • Online ISBN: 978-3-642-30746-1

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation