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International entrepreneurship and geographic location: an empirical examination of new venture internationalization

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Abstract

In this paper, we argue that geographic location may be one reason why some ventures are able to acquire the resources needed to internationalize while others cannot. We use ecological arguments to predict an inverted U-shaped relationship between the concentration of industry clustering within a geographic location and the venture's internationalization. We also explore whether venture characteristics influence the nature of this relationship. Our hypotheses are regressed on international intensity and scope, and analyzed through a sample of 156 publicly held new ventures. Results confirm that location influences new venture internationalization, and firm characteristics impact the nature of the relationship.

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Acknowledgements

An earlier version of this paper was presented at the Babson-Kauffman Entrepreneurship Research Conference, June 2003, Wellesley, MA. The authors wish to thank Alan Rugman and Ben Oviatt for helpful comments on earlier drafts of this paper, and Dean Shepherd and Susan Houghton for insightful suggestions. We would also like to thank Shaker Zahra and the three anonymous reviewers for their incredibly helpful insights.

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Authors and Affiliations

  1. Iowa State University, Ames, USA

    Stephanie A Fernhaber

  2. Mays Business School, Texas A&M University, College Station, USA

    Brett Anitra Gilbert

  3. Kelley School of Business, Indiana University, Bloomington, USA

    Patricia P McDougall

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  1. Stephanie A Fernhaber
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  2. Brett Anitra Gilbert
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  3. Patricia P McDougall
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Correspondence to Stephanie A Fernhaber.

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Accepted by Arie Y Lewin, Editor-in-Chief and Shaker Zahra, Departmental Editor, 24 April 2007. This paper has been with the authors for two revisions.

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Fernhaber, S., Gilbert, B. & McDougall, P. International entrepreneurship and geographic location: an empirical examination of new venture internationalization. J Int Bus Stud 39, 267–290 (2008). https://doi.org/10.1057/palgrave.jibs.8400342

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