International new ventures: revisiting the influences behind the ‘born-global’ firm
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There is a small but theoretically important literature on ‘born-globals’ or international new venture firms that positions itself in contrast to the more established sequential international entry literature. In this paper we examine the pattern of entry into international markets for a set of international new ventures and show that they need not be a distinct breed of firms, as previous research has portrayed. Absent a specific technological advantage, the decision for a new venture to internationalize at inception is influenced by the size of its home market and by its production capacity, as well as by cultural and economic forces that also influence other more traditional firms that stage their entry into international markets. Most importantly, we demonstrate that the decision to internationalize or not should be considered jointly with the capacity allocation decision to specific international markets, as analysing these separately may lead to biased results.
Keywordsinternational new ventures entrepreneurship strategy born-globals
We are grateful for the invaluable research and computing support of the Lee Kong Chiang School of Business at Singapore Management University, as well as the methodological advice offered by Paul Vaaler at the University of Illinois at Urbana-Champaign. The excellent research assistance of Benjamin Jin-Ming Tan is graciously acknowledged. We acknowledge financial support from the John H. Broadbent Endowment for Research in Entrepreneurship in the Lally School of Management and Technology at Rensselaer Polytechnic Institute. Finally, we thank Henk W. Volberda and three very helpful anonymous reviewers, as well as participants at the Pre-conference Development Workshop of the Annual Conference for Corporate Strategy in 2006, for their invaluable advice and suggestions. Omissions and errors are our responsibilities alone.
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