Domestic market context and international entrepreneurs’ relationship portfolios

The importance of relationships to international entrepreneurs’ internationalization is well recognized, but we still know little concerning how entrepreneurs find, develop and use different types of relationships for their internationalization. In a study based on international entrepreneurship and network theories, we examine how having or not having a domestic market affects the relationship portfolios developed by born global software entrepreneurs. We find it profoundly influences the personal relationship strength they seek in new international relationships, and their activeness towards developing new relationships that are embedded in foreign markets. Further, the analytical model we develop shows how and why the presence of a domestic market influences international entrepreneurs’ portfolios of relationships.     

The motivation of international entrepreneurship: The case of Chinese transnational entrepreneurs

The ventures of transnational entrepreneurs (TEs) are a new business phenomenon, representing a fluid context in which established arrangements may be expected to change. In terms of one particular relationship, motivation has been found to be a key construct in international entrepreneurship (IE) research, with two established features of motivation comprising entrepreneurial vision and its implementation. At the same time, nationality has been found to be a consistent influence on entrepreneurial orientation through the impact of culture. Employing qualitative case study methods, this paper investigates these relationships in the new context of the internationalization of Chinese TEs socially embedded in their host and home countries. Subtle changes in established patterns of IE motivation are detected, and Chinese cultural influence may also be weakening to meet the environment of host countries.     

Ethics and entrepreneurs: An international comparative study

In this study, we develop a conceptual framework for the examination of cross-cultural differences in ethical attitudes of business people based on the assumptions of integrative social contract theory (ISCT). ISCT reveals the relevant cultural and economic norms that are predictive of the level of the ethical attitudes among societies and at the same time points out the more subtle impact of social institutions on ethical attitudes of different groups within a society. The evidence supports the use of integrative theoretical approaches within the field of business ethics.     

Differences in international opportunity identification between native and immigrant entrepreneurs

The aim of this study is to understand more about how identification of international opportunities differs between native and immigrant entrepreneurs. Based on a survey of 116 immigrant and 864 native Norwegian entrepreneurs with newly registered firms, we show that immigrant entrepreneurs are more likely to identify international opportunities than native entrepreneurs are. We reveal important differences in the identification process between native and immigrant entrepreneurs. Whereas general human capital has a significant positive effect on international opportunity identification for native entrepreneurs, we cannot find the same effect among immigrant entrepreneurs. Moreover, although financial capital positively influences international opportunity identification among native entrepreneurs, the same effect is significantly negative among immigrant entrepreneurs. Based on these findings, we conclude that native and immigrant entrepreneurs do not utilise the same resources to identify international opportunities. This study contributes to the literature on international entrepreneurship by documenting significant differences in how native and immigrant entrepreneurs identify international opportunities. It also contributes to immigrant entrepreneurship literature by bringing the opportunity-based view of entrepreneurship into the field.     

How financing and information drive international corporate entrepreneurs’ innovations

Journal of International Entrepreneurship - This research combines the literature on social entrepreneurship and international corporate entrepreneurship to determine the relevance financial...     

Argonauts and Icaruses: Social networks and dynamics of nascent international entrepreneurs

Drawing on Bourdieu’s theory of practice, we consider internationalization as a process of field crossing and apply this framework to nascent international entrepreneurs. The analysis of 37 interviews with French entrepreneurs, managers, and support providers in China allows identifying two types of international entrepreneurs: (1) “Fallen Icaruses”, unable to incorporate and exhibit a global habitus and who fall back to the home field, and (2) “Global Argonauts”, incorporating and exhibiting a global habitus and who proceed with internationalization. Our findings show that social networks can be hostile to newcomers and that incumbents in those networks first assess newcomers’ “compatibility”. We posit that the success of international initiatives by entrepreneurs depends on their ability to cross and fit into different “fields”, and to develop various forms of social relationships in those fields.     

The time frames of entrepreneurs

This study investigated past and future temporal depths (distances into the past and future) of entrepreneurs. The results provide the first statistics describing these depths in a sample of entrepreneurs. A significant positive correlation was found between past and future temporal depths, and relationships were examined between both temporal depths and polychronicity, preference for working fast, perceived temporal flexibility of work, emphasis on schedules and deadlines, emphasis on punctuality, and general life stress. Entrepreneurs' ages, lengths of future temporal depth, and perceived temporal flexibility were all found to be negatively related to life stress in a hierarchical regression analysis.     

The counter-conventional mindsets of entrepreneurs

These days, it seems, nearly everyone aspires to be an entrepreneur. But many entrepreneurs think and act differently than the way in which most other businesspeople do and the way much of today’s business education encourages them to think and act. My in-depth examination of dozens of entrepreneurs I’ve come to know well over the past 2 decades tells me that their unconventional—or, dare I say, counter-conventional—mindsets and behaviors are marked by six common patterns: (1) ‘Yes, we can;’ (2) beg, borrow, or steal; (3) think narrow, not broad; (4) problem-first, not product-first logic; (5) ‘No’ is something waiting to be turned into ‘Yes’; and (6) ask for the cash and ride the float. Thankfully, we now know that entrepreneurs are made, not born. These six patterns of entrepreneurial thought and action are eminently learnable. If you want to someday be an entrepreneur, or if you want the people in your company to become more entrepreneurial, then developing—or encouraging and incentivizing your people to develop—such a mindset might constitute a suitable first step toward preparing you to follow a more entrepreneurial path or to foster a more entrepreneurial culture in your company.     

Engaging diasporas as international entrepreneurs in developing countries: In search of determinants

Diaspora has been increasingly recognized by practitioners and scholars as an important factor of development in developing economies. Through their remittances and expertise, diaspora members have become an important source of foreign direct investment and managerial capabilities. Although the literature is glutted with examples of the impact of diaspora in fostering international entrepreneurship and reducing poverty, a theoretical foundation and framework is needed to explain this impact. This study explores a theoretical foundation of the diaspora entrepreneurship. A framework identifying the determinants of the diaspora’s international new venture creation in the country of origin is developed. The study suggests that diaspora international entrepreneurship depends on the level of altruistic motivation, need of social recognition, entrepreneurial opportunities, friendliness and receptivity of the home country, as well as integration of and support to immigrants in the host countries. Propositions for diaspora entrepreneurship are developed.     

The critical relationship between venture capitalists and entrepreneurs: Planning,decision-making,and control

On the basis of preliminary interview and survey data, evidence suggests that venture capitalists (VCs) are less involved with their affiliated new venture organizations than may be necessary for long term survival. The dual core model of innovation that emphasizes the need of a technical and administrative core for continued innovation is used as the foundation of this perspective. In the post investment relationship between the venture capitalist and the new venture, it is expected that the new venture has a well developed technical core. However, the administrative needs are often ignored by the new venture entrepreneurs. Therefore, it is recommended that VCs become more involved in the administrative component of the new venture organization (NVO) through either direct involvement or through the recruiting of key personnel. As the NVO moves through its life cycle the addition of an administrative component to its technical core provides for continued innovation necessary for long term survival and growth.     

From grassroots to international markets: A qualitative study of marginalized entrepreneurs in India

Much of the growing literature on international entrepreneurship focuses on how positive circumstances, such as having prior international experience, business networks, or formal institutions lead to international entrepreneurial action and overlooks the role more challenging circumstances might play. In this study, we extend and refine challenge-based entrepreneurship theory to explore what influences international entrepreneurial action undertaken by marginalized entrepreneurs in an emerging economy. Despite widening economic and social disparities in emerging economies, little is known about entrepreneurs who have traditionally been “left behind.” Our findings suggest that these marginalized entrepreneurs have not only a set of liabilities but also advantages, including creative problem solving and perseverance, as well as local knowledge and networks. To spur the first-person international opportunity belief associated with international entrepreneurial action, an intermediary with resources and networks is needed to offset the liabilities. These intermediaries act as gatekeepers, helping some marginalized entrepreneurs but holding back others.     

Motivational focus of international entrepreneurs in Spain: From early explorers to straggler exploiters

We analyze the motivation of entrepreneurs who lead business internationalization. We study how motivation affects the entry timing into overseas markets as well as the selection of markets. We use the regulatory focus theory that recognizes two orientations: promotion versus prevention. Then, we define a typology of entrepreneurs: early explorer, straggler exploiter, early exploiter, and straggler explorer. We review interviews published in a Spanish journal centred on internationalization and perform a content analysis that allows us to identify the motivation of entrepreneurs. Results indicate that promotion focus is the most common and that experiential knowledge emerges as a key factor in the shift in motivation governing the selection of overseas markets. Copyright © 2017 ASAC. Published by John Wiley & Sons, Ltd.     

The career reasons of nascent entrepreneurs

This paper explores the reasons that nascent entrepreneurs offered for their work and career choices and compares those responses to the reasons given by a group of nonentrepreneurs. Six separate factors accounted for 68% of the variance: self-realization, financial success, roles, innovation, recognition, and independence. The factor scores of nascent entrepreneurs and nonentrepreneurs were not significantly different on self-realization, financial success, innovation, and independence. Nascent entrepreneurs rated reasons concerning roles and recognition significantly lower than nonentrepreneurs. Finally, gender differences in reasons also emerged; male nascent entrepreneurs and nonentrepreneurs rated financial success and innovation higher than did females, regardless of their group of origin.     

The Eurozone formation: MNC and international bank reactions

Introduction of the Euro has brought dramatic changes to the perceptions and realities of MNC finance. These changes vary considerably based on whether the multinational company has integrated its U.S. and European treasury operations or is U.S. dollar‐centric in finance orientation. We conducted a survey to determine changes in U.S.‐based MNC treasury practice resulting from the Eurozone formation. This article reports the results of this survey with regard to hedging activities, European banking arrangements, and Euro financial market sourcing. The effects on the two types of MNCs are compared. Implications for international banks are examined. Recent Eurozone bank merger developments are also reviewed, with special focus on M&A developments in both France and Germany. © 2003 Wiley Periodicals, Inc.     

The role of communication competencies in international business relationship development

Effective communication between international business partners is critical for global success. Underlying national and organizational cultural differences in international business relationships creates hurdles to effective communication, hindering performance. To assist managers in understanding this issue, a model of communication effectiveness for international relationship development, derived from industry examples, theory, and a dataset consisting of 123 qualitative interviews conducted with American, Canadian, Chinese, and Japanese managers is presented. Further, in order to assist managers in the task of developing more effective communications, a six-step process aimed in directing managerial action is presented. By proactively managing its communications, a firm can develop stronger international business relationships facilitating the rapid response to market opportunities and challenges.     

Explaining the formation of international new ventures: The limits of theories from international business research

International new ventures (INVs) represent a growing and important type of start-up. An INV is defined as a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries (Oviatt and McDougall 1994). Their increasing prevalence and important role in international competition indicates a need for greater understanding of these new ventures (Oviatt and McDougall 1994).Logitech, as described in a case study by Alahuhta (1990), is a vivid example of an INV. Its founders were from two different countries and had a global vision for the company from its inception. The venture, which produces peripheral devices for personal computers, established headquarters in both Switzerland and the U.S. Manufacturing and R&D were split between the U.S. and Switzerland, and then quickly spread to Taiwan and Ireland. The venture's first commercial contract was with a Japanese company.Using 24 case studies of INVs, we found that their formation process is not explained by existing theories from the field of international business. Specifically, neither monopolistic advantage theory, product cycle theory, stage theory of internationalization, oligopolistic reaction theory, nor internalization theory can explain the formation process of INVs. These theories fail because they assume that firms become international long after they have been formed, and they therefore highlight large, mature firms. They also focus too much on the firm level and largely ignore the individual and small group level of analysis (i.e., the entrepreneur and his or her network of business alliances).We propose that an explanation for the formation process of INVs must answer three questions: (1) who are the founders of INVs? (2) why do these entrepreneurs choose to compete internationally rather than just in their home countries? and (3) what form do their international business activities take?Who are the founders of INVs? We argue that founders of INVs are individuals who see opportunities from establishing ventures that operate across national borders. They are “alert” to the possibilities of combining resources from different national markets because of the competencies (networks, knowledge, and background) that they have developed from their earlier activities. Following the logic of the resource-based view of the firm, we argue that the possession of these competencies is not matched by other entrepreneurs. Only the entrepreneur possessing these competencies is able to combine a particular set of resources across national borders and form a given INV.Why do these entrepreneurs choose to compete internationally rather than just in their home countries? The founders of INVs recognize they must create international business competencies from the time of venture formation. Otherwise, the venture may become path-dependent on the development of domestic competencies and the entrepreneur will find it difficult to change strategic direction when international expansion eventually becomes necessary. As the founder of one INV explained, “The advantage of starting internationally is that you establish an international spirit from the very beginning” (Mamis 1989:38).What form do their international business activities take? Founders of INVs prefer to use hybrid structures (i.e., strategic alliances and networks) for their international activities as a way to overcome the usual poverty of resources at the time of start-up.This study has important implications for the practice of management. In financing decisions relating to INVs, venture capitalists and other venture financiers should look for entrepreneurs who have a global vision, international business competence, and an established international network. When entrepreneurs start INVs they should create hybrid structures to preserve scarce resources. Finally, given the path-dependence of competence development, founders of new ventures should consider whether establishing a domestic new venture with plans to later internationalize will be as successful a strategy as establishing a new venture that is international from inception.     

The impact of institutional distance on the international diversity–performance relationship

We investigated the impact of institutional distance on the international diversity–performance relationship. We first discussed the international diversity–performance relationship for large multinational firms and later showed the moderation effect of regulative and normative institutional distance. Based on a sample of Fortune 500 firms, we found an inverted U-shaped curve. Regulative institutional distance has a negative moderating effect on the international diversity–performance relationship, while normative institutional distance shows a positive effect.     

The relationship between culture and perception of ethical problems in international Marketing

This research study sought to identify whether there is a relationship between ethical perceptions and culture. An examination of the cultural variables suggests that there is a relationship between two of Hofstede's cultural dimensions (i.e., Uncertainty Avoidance and Individualism) and ethical perceptions. This finding supports the hypothetical linkage between the cultural environment and the perceived ethical problem variables posited in Hunt and Vitell's General Theory of Marketing Ethics (1986).Robert Armstrong is Professor of Marketing and Research Associate of the Asia Research Centre at Murdoch University, Programme Chair for the MBA and Marketing and Media degree programmes. Professor Armstrong has been in Australia for six years, he spent two years at the University of Western Australia and the last four years at Murdoch University. To date, he has published over 20 journal articles and an Australian Marketing Research textbook.