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Home Country Institutional Context and Entrepreneurial Internationalization: The Significance of Human Capital Attributes

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Abstract

The global economy involves enormous internationalization activities that provide untapped opportunities for entrepreneurs and businesses. This study sets out to improve the understanding of the role of the home country human capital on entrepreneurial internationalization. To advance this understanding, we conducted an analysis of data from 28 European countries using structural equation modeling (SEM) with partial least squares (PLS). The result of an empirical analysis revealed that the entrepreneurial intentions of the country’s non-entrepreneurs has a positive and significant impact on effective business creation and the latter consequently has a positive and significant impact on the level of internationalization. Also, our findings indicate that the level of education has a negative impact on entrepreneurial readiness/awareness.

Abstrait

L'économie mondiale regorge d’énormes occasions d’internationalisation encore inexploitées par les entrepreneurs et les entreprises. Cette étude vise à améliorer la compréhension de la relation entre le capital humain du pays d’origine de l’entrepreneur et l’internationalisation de son entreprise. Pour examiner cette relation, nous avons analysé des données de 28 pays européens en utilisant la régression PLS (Partial Least Square Regression). Le résultat de cette analyse a révélé que les intentions entrepreneuriales des non-entrepreneurs ont un impact positif significatif sur la création effective d’entreprises et que cette dernière a par conséquent un impact positif significatif sur le niveau d’internationalisation. En outre, nos résultats indiquent que le niveau d’éducation a un impact négatif sur la préparation/prise de conscience de l’entrepreneur.

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Notes

  1. A Q2 with a value larger than zero for a reflective endogenous latent variable indicates the path model’s predictive relevance for this particular construct (Hair et al. 2014: 178).

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Jafari-Sadeghi, V., Nkongolo-Bakenda, JM., Dana, LP. et al. Home Country Institutional Context and Entrepreneurial Internationalization: The Significance of Human Capital Attributes. J Int Entrep 18, 165–195 (2020). https://doi.org/10.1007/s10843-019-00264-1

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