Advertisement

Journal of International Entrepreneurship

, Volume 8, Issue 2, pp 121–134 | Cite as

Linking international entrepreneurship to uncertainty, opportunity discovery, and cognition

  • John E. ButlerEmail author
  • Robert Doktor
  • Frederick A. Lins
Article

Abstract

In this paper, we suggest a model of international entrepreneurship that links cognition, noticing opportunities, absorbing uncertainty, and bearing uncertainty, to international entrepreneurial action, which is important because of the increased interest in international entrepreneurship. The ways in which cognition affects opportunity identification are discussed to show how international entrepreneurs’ cognitive processes work in terms of identifying opportunities. We also explore the role of cultural differences, with respect to tolerance for bearing uncertainty, on international entrepreneurship. Finally, the model is used to identify areas for future international entrepreneurship research.

Keywords

Uncertainty Cognition Opportunity noticing Discovery Creativity International entrepreneurship 

References

  1. Acs Z, Arenius P, Hay M, Minniti M (2005) Global entrepreneurship monitor: 2004 executive report. London Business School, LondonGoogle Scholar
  2. Addleson M (1995) Equilibrium versus understanding: towards the rehuminization of economics within social theory. Routledge, LondonCrossRefGoogle Scholar
  3. Anderson S, Wictor I (2003) Innovative internationalization in new firms: born global—the Swedish case. J Int Entrep 1(3):249–276CrossRefGoogle Scholar
  4. Arenius P (2005) The psychic distance postulate revisited: form market selection to speed of market penetration. J Int Entrep 3(2):115–131CrossRefGoogle Scholar
  5. Autio E, Sapienza HJ, Almeida JG (2000) Effects of age at entry, knowledge intensity, and imitability on international growth. Acad Manage J 43(5):119–134CrossRefGoogle Scholar
  6. Begley T, Tan W (2001) The socio-cultural environment for entrepreneurship: a comparison between Asian and Anglo-Saxon countries. J Int Bus Stud 43(5):909–924Google Scholar
  7. Buckley PJ, Casson MC (1976) The future of the multinational enterprise. MacMillan, LondonGoogle Scholar
  8. Coviello NE (2006) The network dynamics of international new ventures. J Int Bus Stud 37(5):713–731Google Scholar
  9. Coviello NE, Jones MV (2004) Methodological issues in international research. J Bus Venturing 19(4):485–508CrossRefGoogle Scholar
  10. Cyert RM, March JG (1963) A behavioral theory of the firm. Prentice-Hall, Englewood CliffsGoogle Scholar
  11. Damasio A (1994) Descartes' error: emotion, reason, and the human brain. Avon, New YorkGoogle Scholar
  12. Damasio A (1999) The feeling of what happens: body and emotion in the making of consciousness. Harcourt, San DiegoGoogle Scholar
  13. DiMaggio PJ, Powell WW (1983) The iron cage revisited: Institutional isomorphism and collective rationality in organization fields. Amer Socio R 48(2):147–160CrossRefGoogle Scholar
  14. Doktor R, Dana L, Singer A, Lins AF, Lins FA (2007) In: Li ZG, Cannice MV, Chen R (eds) Proceedings of the Third Annual 2007 San Francisco-Silicon Valley Global Entrepreneurship Research Conference (p. 2). University of San Francisco, San FranciscoGoogle Scholar
  15. Dunning JH (1981) International production and the multinational enterprise. Allen & Unwin, LondonGoogle Scholar
  16. Forrester JW (1971) World dynamics. Pegasus, WalthamGoogle Scholar
  17. Galunic DC, Rodan S (1998) Resource recombinations in the firm: knowledge structures and the potential for Schumpeterian innovations. Strateg Manage J 19(12):1193–1201CrossRefGoogle Scholar
  18. Grichnik D (2008) Ricky choices in new venture decisions-experimental evidence from Germany and the United States. J Int Entrep 6(1):2008CrossRefGoogle Scholar
  19. Hofstede G (1980) Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations. Sage, Beverly HillsGoogle Scholar
  20. Hofstede G (2001) Culture’s consequences: comparing values, behaviors, institutions, and organizations across nations. Sage, Thousand OaksGoogle Scholar
  21. House RJ, Hanges PJ, Javidan M, Dorfman PW, Gupta V (2004) Culture, leadership, and organizations: the GLOBE study of 62 societies. Sage, Thousand OaksGoogle Scholar
  22. Johanson J, Wiedersheim-Paul F (1975) The internationalization of the firm: four Swedish case studies. J Manage Stud 12(3):305–322CrossRefGoogle Scholar
  23. Johanson J, Vahlne JE (1977) The internationalization process of the firm – a model of knowledge development and increasing foreign market commitments. J Int Bus Stud 8(1):11–25CrossRefGoogle Scholar
  24. Johanson J, Vahlne JE (2009) The Uppsala internationalization process model revisited: from liability of foreignness to liability of outsidership. J Int Bus Stud 40(9):1411–1431CrossRefGoogle Scholar
  25. Jones MV, Coviello NE (2005) Internationalization: conceptualizing an entrepreneurial process of behavior in time. J Int Bus Stud 36(3):284–303CrossRefGoogle Scholar
  26. Kirzner IM (1973) Competition and entrepreneurship. University of Chicago Press, ChicagoGoogle Scholar
  27. Kirzner I (1979) Perception, opportunity and profit: studies in the theory of entrepreneurship. University of Chicago Press, ChicagoGoogle Scholar
  28. Knight FH (1921) Risk, uncertainty and profit. Houghton Mifflin, BostonGoogle Scholar
  29. Knight GA, Cavusgil ST (1996) The born global firm: a challenge to traditional internationalization theory. In: Cavusgil ST, Madsen T (eds) Advances in international marketing (vol 8). JAI, GreenwichGoogle Scholar
  30. Ko S (2004) Entrepreneurial opportunity identification through bisociative mode of thinking. Doctoral dissertation Hong Kong Polytechnic University, Hong KongGoogle Scholar
  31. Koestler A (1964) The act of creation. Arkana, Pinguin Group, LondonGoogle Scholar
  32. Kogut B, Zander U (1992) Knowledge of the firm, combinative capabilities, and the replication of technology. Org Sci 3(3):383–397CrossRefGoogle Scholar
  33. Kundu SK, Katz JA (2003) Born international smes: bi-level impacts on resources and intentions. Small Bus Econ 20(1):25–47CrossRefGoogle Scholar
  34. Lee JH, Venkataraman S (2006) Aspirations, market offerings, and the pursuit of entrepreneurial opportunities. J Bus Venturing 21(1):107–123CrossRefGoogle Scholar
  35. Lee SH, Peng MW, Barney JB (2007) Bankruptcy law and entrepreneurship development: a real options perspective. Acad Manage Rev 32(1):57–272CrossRefGoogle Scholar
  36. Lopez LE, Kundu SK, Ciravegna L (2009) Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry. J Int Bus 40(7):1228–1238CrossRefGoogle Scholar
  37. Lu J, Beaamish P (2001) The internationalization and performance of smes. Strateg Manage J 22(6–7):565–586CrossRefGoogle Scholar
  38. McDougall PP, Oviatt BM (1996) A framework for understanding accelerated international entrepreneurship. In: Wright RW (ed) Research in global strategic management. JAI, Greenwich, pp 23–42Google Scholar
  39. McDougall PP, Shane S, Oviatt BM (1994) Explaining the formation of international new ventures: the limit of theories from international business research. J Bus Venturing 9(6):469–487CrossRefGoogle Scholar
  40. McMullen JS, Shepherd DA (2006) Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Acad Manage Rev 31(1):132–152CrossRefGoogle Scholar
  41. McNaughton RB (2003) The number of export markets that a firm serves: Process models versus the born-global phenomenon. J Int Entrep 1(3):297–311CrossRefGoogle Scholar
  42. Mezias JM (2002) Identifying liabilities of foreignness and strategies to minimize their effects: the case of labor lawsuit judgments in the United States. Strateg Manage J 23(3):229–244CrossRefGoogle Scholar
  43. Miller SR, Parkhe A (2002) Is there a liability of foreignness in global banking? An empirical tests of banks’ x-efficiency. Strateg Manage J 23(1):55–75CrossRefGoogle Scholar
  44. von Mises L (1949) Human action—a treatise on economics. Yale University Press, New HavenGoogle Scholar
  45. Montgomery D, Bull KS, Balouche L (1993) Characteristics of creative persons. Am Behav Sci 37(1):68–78CrossRefGoogle Scholar
  46. Morgan G (2006) Images of organizations. Sage, Thousand OaksGoogle Scholar
  47. Morrow JM (1988) International entrepreneurship: a new growth opportunity. New Manag 3(5):59–61Google Scholar
  48. Nelson RR, Winter SG (1982) An evolutionary theory of economic change. The Belknap Press of Harvard University Press, CambridgeGoogle Scholar
  49. Nonaka I, Takeuchi H (1995) The knowledge-creating company: how Japanese companies create the dynamics of innovation. Oxford University Press, New YorkGoogle Scholar
  50. Oviatt BM, McDougall PP (1994) Toward a theory of international new ventures. J Int Bus Stud 25(1):45–64CrossRefGoogle Scholar
  51. Oviatt BM, McDougall PP (1995) Global start-ups: entrepreneurs on a worldwide stage. Acad Manage Exec 9(2):469–487Google Scholar
  52. Piaget J (1969) Psychology of the child. Basic, New YorkGoogle Scholar
  53. Piaget J (1971) Biology and knowledge: an essay on the relations between organic regulations and cognitive processes. University of Chicago Press, ChicagoGoogle Scholar
  54. Renee MW (1993) Born global. McKinsey Q 4:45–52Google Scholar
  55. Reuber AR, Fischer E (1997) The influence of the management team’s international experience on the international behaviors of smes. J Int Bus Stud 28(6):807–825CrossRefGoogle Scholar
  56. Rosenweig PM, Nohria N (1994) Influences on human resource management practices in multinational corporation. J Int Bus Stud 25(2):229–252CrossRefGoogle Scholar
  57. Sapienza HJ, Autio E, George G, Zahra SA (2006) A capabilities perspective on the effects of early internationalization on firm survival and growth. Acad Manage Rev 31(4):914–933CrossRefGoogle Scholar
  58. Say JB (1836) A treatise on political economy; or the production, distribution, and consumption of wealth. Grigg & Elliot, PhiladelphiaGoogle Scholar
  59. Schumpeter JA (1934) The theory of economic development. Harvard University Press, CambridgeGoogle Scholar
  60. Shane S (2003) A general theory of entrepreneurship: the individual-opportunity nexus. Edward Elgar, NorthamptonGoogle Scholar
  61. Shepherd D (2003) Learning from business failure: propositions of grief recovery for the self-employed. Acad Manage Rev 28(2):318–328CrossRefGoogle Scholar
  62. Stinchcombe AL (1965) Social structures and organizations. In: March JG (ed) Handbook of organizations. Rand, Chicago, pp 142–193Google Scholar
  63. Sternberg RJ (2005) WICS: a model of giftedness in leadership. Roeper Rev 28(1):37–44CrossRefGoogle Scholar
  64. Taylor JG (1999) The race for consciousness. MIT, CambridgeGoogle Scholar
  65. Vapola TJ, Tossavainen P, Gabrielsson M (2008) The battleship strategy: the complementing role of born globals in MNC’s new opportunity creation. J Int Entrep 6(1):1–21CrossRefGoogle Scholar
  66. Verper KH (1980) New venture strategies. Prentice-Hall, Englewood CliffsGoogle Scholar
  67. Weick KE, Roberts KH (1993) Collective mind in organizations: heedfull interrelating on flight decks. Admin Sci Q 38(3):357–38CrossRefGoogle Scholar
  68. Zaheer S (1995) Overcoming the liability of foreignness. Acad Manage J 38(2):341–363CrossRefGoogle Scholar
  69. Zahra SA, George G (2002) International entrepreneurship: the current status of the field and future research. In: Hitt MA, Ireland RD, Sexton DL (eds) Strategic entrepreneurship: creating a new mindset. Blackwell, Malden, pp 255–288Google Scholar
  70. Zahra SA, Korri JS, Yu JF (2005) Cognition and international entrepreneurship: implications for research on international opportunity recognition and exploitation. Int Bus Rev 14(2):129–1467CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  • John E. Butler
    • 1
    Email author
  • Robert Doktor
    • 1
  • Frederick A. Lins
    • 2
  1. 1.Department of ManagementShilder College of BusinessHonoluluUSA
  2. 2.August Enterprises Inc.4410 Pahoa Ave.HonoluluUSA

Personalised recommendations