Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Internationalization of new ventures: tests of growth and survival

Internationalization of new ventures: tests of growth and survival Purpose – The purpose of this paper is to investigate key contingencies affecting the internationalization of young ventures, and to shed light on early internationalization's implications for organizational survival and growth. Design/methodology/approach – A previously suggested conceptual framework is tested based on a quantitative study of UK firms before explorative analysis takes the analysis further. Findings – Contrary to the model suggested by Sapienza et al. that internationalization is of increasing importance at young ventures' founding stage, no such indications were found in this study. Further statistical tests revealed interesting insights into the relationship between other organizational factors and a young firm's survival and growth prospects. Research limitations/implications – The empirical results suggest that internationalization is a largely overrated theoretical factor as far as young ventures' short‐term survival and performance are concerned. As internationalization paths differ contingent upon country of origin and other factors, further empirical tests are needed beyond the UK sample. Originality/value – Empirical tests of previously suggested conceptual frameworks are needed to advance the body of knowledge on successful internationalization. Next to this initial test, further exploratory analysis suggests a refined framework. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Multinational Business Review Emerald Publishing

Internationalization of new ventures: tests of growth and survival

Download PDF
28 pages

Loading next page...
 
/lp/emerald-publishing/internationalization-of-new-ventures-tests-of-growth-and-survival-DWYN6YYBen
Publisher
Emerald Publishing
Copyright
Copyright © 2011 Emerald Group Publishing Limited. All rights reserved.
ISSN
1525-383X
DOI
10.1108/15253831111190199
Publisher site
See Article on Publisher Site

Abstract

Purpose – The purpose of this paper is to investigate key contingencies affecting the internationalization of young ventures, and to shed light on early internationalization's implications for organizational survival and growth. Design/methodology/approach – A previously suggested conceptual framework is tested based on a quantitative study of UK firms before explorative analysis takes the analysis further. Findings – Contrary to the model suggested by Sapienza et al. that internationalization is of increasing importance at young ventures' founding stage, no such indications were found in this study. Further statistical tests revealed interesting insights into the relationship between other organizational factors and a young firm's survival and growth prospects. Research limitations/implications – The empirical results suggest that internationalization is a largely overrated theoretical factor as far as young ventures' short‐term survival and performance are concerned. As internationalization paths differ contingent upon country of origin and other factors, further empirical tests are needed beyond the UK sample. Originality/value – Empirical tests of previously suggested conceptual frameworks are needed to advance the body of knowledge on successful internationalization. Next to this initial test, further exploratory analysis suggests a refined framework.

Journal

Multinational Business Review – Emerald Publishing

Published: Nov 11, 2011

Keywords: International business; Business formation; Business development; Business performance; Internationalization; New ventures; UK firms; Growth; Survival

References

  • Does entry size matter? The impact of the life cycle and technology on firm survival
    Agarwal, R.; Audretsch, D.B.
  • The entrepreneurship of resource‐based theory
    Alvarez, S.A.; Busenitz, L.W.
  • Asset redeployment, acquisitions and corporate strategy in declining industries
    Anand, J.; Singh, H.
  • Demography and design: predictors of new product team performance
    Ancona, D.; Caldwell, D.F.
  • Short‐term study abroad and intercultural sensitivity: a pilot study
    Anderson, P.H.; Lawton, L.; Rexeisen, R.J.; Hubbard, A.C.
  • Effects of age at entry, knowledge intensity, and imitability on international growth
    Autio, E.; Sapienza, H.J.; Almeida, J.G.
  • Export performance: do managerial perceptions make a difference?
    Axinn, C.N.
  • Orginizational theories: some criteria for evaluation
    Bacharach, S.B.
  • Evolving sustainability: a longitudinal study of corporate sustainable development
    Bansal, P.
  • International expansion through start‐up or acquisition: a learning perspective
    Barkema, H.G.; Vermeulen, F.
  • The balance of power in closely held corporations
    Bennedsen, M.; Wolfenzon, D.
  • Entrepreneurship in the Global Firm
    Birkinshaw, J.M.
  • The internationalization of new high‐potential US ventures: antecedents and outcomes
    Bloodgood, J.M.; Sapienza, H.J.; Almeida, J.G.
  • On the relationship between firm size and export intensity
    Bonaccorsi, A.
  • Improving Intercultural Interactions
    Brislin, R.W.; Yoshida, T.
  • Employment growth determinants in new firms in Eastern Germany
    Brixy, U.; Kohaut, S.
  • Organizational mortality: the liabilities of newness and adolescence
    Brüderl, J.; Schüssler, R.
  • Factors Motivating Small Companies to Internationalize: The Effect of Firm Age
    Brush, C.G.
  • FAME – UK and Irish Company Information in an Instant
    Bureau van Dijk
  • The international market entry choices of start‐up companies in high‐technology industries
    Bürgel, O.; Murray, G.C.
  • Profile analysis of non‐exporters versus exporters grouped by export involvement
    Burton, F.N.; Schlegelmilch, B.B.
  • Organizational mortality in the newspaper industries of Argentina and Ireland: an ecological approach
    Carroll, G.R.; Delacroix, J.
  • Firm and management characteristics as discriminators of export marketing activity
    Cavusgil, S.T.; Naor, J.
  • Marketing strategy‐performance relationship: an investigation of the empirical link in export market ventures
    Cavusgil, S.T.; Zou, S.
  • A market performance comparison of US firms active in domestic, developed and developing countries
    Collins, J.M.
  • Methodological issues in international entrepreneurship research
    Coviello, N.E.; Jones, M.V.
  • Productivity and corporate governance in smaller firms
    Cowling, M.
  • The internationalisation of born global and international new venture SMEs
    Crick, D.
  • Survival and profitability: the roles of experience and intangible assets in foreign subsidiary performance
    Delios, A.; Beamish, P.W.
  • Political hazards, experience and sequential entry strategies: the international expansion of Japanese firms, 1980‐1998
    Delios, A.; Henisz, W.J.
  • Age, size, growth and survival: UK companies in the 1980s
    Dunne, P.; Hughes, A.
  • The relational view: cooperative strategy and sources of interorganizational competitive advantage
    Dyer, J.H.; Singh, H.
  • Experiential knowledge and cost in the internationalization process
    Eriksson, K.; Johanson, J.; Majkgard, A.; Sharma, D.D.
  • The experience factor in foreign market entry behavior of service firms
    Erramilli, M.K.
  • Looking forward and looking backward: cognitive and experiential search
    Gavetti, G.; Levinthal, D.
  • Slack resources and the performance of privately held firms
    George, G.
  • Diversification strategy and internationalization: implications for MNE performance
    Geringer, J.M.; Beamish, P.W.; DaCosta, R.C.
  • Survival of the fittest? Entrepreneurial human capital and the persistence of underperforming firms
    Gimeno, J.; Folta, T.B.; Cooper, A.C.; Woo, C.Y.
  • 40 Years of research on internationalization and firm performance: more questions than answers?
    Glaum, M.; Oesterle, M.‐J.
  • Strategy as stretch and leverage
    Hamel, G.; Prahalad, C.K.
  • Rethinking age dependence in organizational mortality: logical formalizations
    Hannan, M.T.
  • Legal form, growth and exit of West German firms – empirical results for manufacturing construction, trade and service industries
    Harhoff, D.; Stahl, K.; Woywode, M.
  • Growth and size of firms
    Hart, P.E.; Oulton, N.
  • The birth of capabilities: market entry and the importance of pre‐history
    Helfat, C.E.; Lieberman, M.B.
  • Innovation and the survival of new firms in the UK
    Helmers, C.; Rogers, M.
  • Firm strategy and age dependence: a contingent view of the liabilities of newness, adolescence, and obsolescence
    Henderson, A.D.
  • Uncertainty, imitation, and plant location: Japanese multinational corporations, 1990‐1996
    Henisz, W.J.; Delios, A.
  • International diversification: antecedents, outcomes, and moderators
    Hitt, M.A.; Tihanyi, L.; Miller, T.; Connelly, B.
  • Sticking it out: entrepreneurial survival and liquidity constraints
    Holtz‐Eakin, D.; Joulfaian, D.; Rosen, H.S.
  • Small business champions for corporate social responsibility
    Jenkins, H.
  • The internationalization process of the firm – a model of knowledge development and increasing foreign market commitments
    Johanson, J.; Vahlne, J.‐E.
  • The internationalization of the firm – four Swedish cases
    Johanson, J.; Wiedersheim‐Paul, F.
  • Determinants and archetype users of open innovation
    Keupp, M.M.; Gassmann, O.
  • Top management‐team diversity and firm performance: examining the role of cognitions
    Kilduff, M.; Angelmar, R.; Mehra, A.
  • Incumbent entry into new market niches: the role of experience and managerial choice in the creation of dynamic capabilities
    King, A.A.; Tucci, C.L.
  • Innovation, organizational capabilities, and the born‐global firm
    Knight, G.A.; Cavusgil, S.T.
  • Relative absorptive capacity and interorganizational learning
    Lane, P.J.; Lubatkin, M.
  • The myopia of learning
    Levinthal, D.A.; March, J.G.
  • Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry
    Lopez, L.E.; Kundu, S.K.; Ciravegna, L.
  • SME internationalization and performance: growth vs. profitability
    Lu, J.W.; Beamish, P.W.
  • Clarifying the entrepreneurial orientation construct and linking it to performance
    Lumpkin, G.T.; Dess, G.G.
  • Learning to compete in a transition economy: experience, environment, and performance
    Luo, Y.; Peng, M.W.
  • New venture internationalization, strategic change, and performance: a follow‐up study
    McDougall, P.P.; Oviatt, B.M.
  • A comparison of international and domestic new ventures
    McDougall, P.P.; Oviatt, B.M.; Shrader, R.C.
  • Recreating and extending Japanese automobile buyer‐supplier links in North America
    Martin, X.; Mitchell, W.; Swaminathan, A.
  • Small businesses and exporting: a literature review
    Miesenböck, K.J.
  • What happens after success: the perils of excellence
    Miller, D.
  • Foreign entrant survival and foreign market share: Canadian companies' experience in United States medical sector markets
    Mitchell, W.; Shaver, J.M.; Yeung, B.
  • Relational and contractual governance in family firms: effects on strategic decision making
    Mustakallio, M.; Autio, E.; Zahra, S.
  • An Evolutionary Theory of Economic Change
    Nelson, R.R.; Winter, S.G.
  • The dynamics of family firms: an institutional perspective on corporate governance and strategic change
    Nordqvist, M.; Melin, L.
  • Executive Team Demography, Organizational Innovation, and Firm Performance
    O'Reilly, C.A.; Flatt, S.
  • Toward a theory of new international ventures
    Oviatt, B.M.; McDougall, P.P.
  • Global start‐ups: entrepreneurs on a worldwide stage
    Oviatt, B.M.; McDougall, P.P.
  • Limits to the growth and size of firms
    Penrose, E.
  • The Theory of the Growth of the Firm
    Penrose, E.
  • Measuring the degree of internationalization of a firm: a comment
    Ramaswamy, K.; Kroeck, K.G.; Renforth, W.
  • The founding of the born global company in Denmark and Australia: sensemaking and networking
    Rasmussan, E.S.; Madsen, T.K.; Evangelista, F.
  • The decision to enter and exit foreign markets: evidence from UK SMEs
    Requena‐Silvente, F.
  • Foreign sales and small firm growth: the moderating role of the management team
    Reuber, A.R.; Fischer, E.
  • The phenomenon of early internationalizing firms: what do we know after a decade (1993‐2003) of scientific inquiry?
    Rialp, A.; Rialp, J.; Knight, G.A.
  • Entry Strategies for International Markets
    Root, F.R.
  • Export performance and destination characteristics of Irish manufacturing industry
    Ruane, F.; Sutherland, J.
  • The internationalization‐performance relationship at Swiss firms: a test of the S‐shape and extreme degrees of internationalization
    Ruigrok, W.; Amann, W.; Wagner, H.
  • Human capital and SME internationalization: a structural equation modeling study
    Ruzzier, M.; Antoncic, B.; Hisrich, R.D.; Konecnik, M.
  • A capabilities perspective on the effects of early internationalization on firm survival and growth
    Sapienza, H.J.; Autio, E.; George, G.; Zahra, S.A.
  • Firm‐level determinants of export intensity
    Schlegelmilch, B.B.; Crook, J.N.
  • Toward a theory of agency and altruism in family firms
    Schulze, W.S.; Lubatkin, M.H.; Dino, R.N.
  • Agency relationships in family firms: theory and evidence
    Schulze, W.S.; Lubatkin, M.H.; Dino, R.N.; Buchholtz, A.K.
  • Organizational change and organizational mortality
    Singh, J.V.; House, R.J.; Tucker, D.J.
  • Social structure and organizations
    Stinchcombe, A.L.
  • Understanding the Small Business Sector
    Storey, D.J.
  • Measuring the degree of internationalization of a firm
    Sullivan, D.
  • Measuring the degree of internationalization of a firm: a reply
    Sullivan, D.
  • The dynamic capabilities of firms: an introduction
    Teece, D.J.; Pisano, G.
  • Employment creation in small technological and design innovators in the UK during the 1980s
    Tether, B.S.; Massini, S.
  • A challenge to the stage theory of the internationalization process
    Turnbull, P.W.
  • Firm size and export intensity: a transaction costs and resource‐based perspective
    Verwaal, E.; Donkers, B.
  • Normative and resource flow consequences of local regulations in American brewing industry, 1845‐1918
    Wade, J.B.; Swaminathan, A.; Saxon, M.S.
  • Advantageous competence of owner managers to grow the firm in Poland: empirical evidence
    Wasilczuk, J.
  • Article Citations
    Web of Knowledge
  • Internationalization: evolution of a concept
    Welch, L.S.; Luostarinen, R.K.
  • A resource‐based view of the firm
    Wernerfelt, B.
  • The Analysis and Use of Financial Statements
    White, G.I.; Sondhi, A.C.; Fried, D.
  • A empirical study of the differences between small exporting and non‐exporting US firms
    Yaprak, A.
  • Firm growth, size, age and behavior in Japanese manufacturing
    Yasuda, T.
  • Social capital, knowledge acquisition, and knowledge exploitation in young technology‐based firms
    Yli‐Renko, H.; Autio, E.; Sapienza, H.J.
  • A theory of international new ventures: a decade of research
    Zahra, S.A.
  • Dynamic capabilities and the emergence of intraindustry differential firm performance: insights from a simulation study
    Zott, C.