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Changing Paradigms of International Entrepreneurship Strategy

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Abstract

This article identifies sweeping transformations taking place in the contemporary international business environment, and discusses their impact on international entrepreneurship. We focus on two overarching trends: (1) the demise of the nation-state as the relevant unit around which international business activity is organised and conducted; and (2) the demise of the stand-alone firm, with a hierarchic distribution of power and control, as the principal unit of business competition. We then discuss an alternate approach to internationalisation: one that involves a multi-polar distribution of power and control. Traditional approaches to internationalisation focus on the hierarchic centralised firm, with a uni-polar distribution of power and control. We suggest that the world is moving towards multi-polar networks of firms, involved in what we term symbiotic management: each entity benefits from working together within a multi-polar network. This includes large corporations as well as small and medium-sized enterprises (SMEs). As corporations out-source to specialised firms–increasingly SMEs–power and control are dispersed among independently owned firms that are cooperating voluntarily for increased efficiency and profit. The new paradigm moves from a focus on the firm, towards a focus on relationships within multi-polar networks. We conclude by illustrating how this emerging competitive paradigm may impact on the strategic management of small firms, with examples from a real-world company.

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Authors and Affiliations

  1. Robins School of Business, University of Richmond, Richmond, UA, 23173, USA

    Richard W. Wright

  2. University of Canterbury, Private Bag 4800, Christchurch, New Zealand

    Léo-Paul Dana

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  1. Richard W. Wright
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  2. Léo-Paul Dana
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Wright, R.W., Dana, LP. Changing Paradigms of International Entrepreneurship Strategy. Journal of International Entrepreneurship 1, 135–152 (2003). https://doi.org/10.1023/A:1023384808859

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