The determinants of the internationalization speed of Portuguese university spin-offs: An empirical investigation

The speed of internationalization of firms has attracted considerable research in the last few decades. However, with regard to a particular type of firm, university spin-offs (USOs), this line of research is still incipient. A majority of the studies on USOs highlights their main features but does not focus on internationalization. Based on the responses from 111 Portuguese USOs, of which 78 are exporters, econometric estimations indicate that: (1) the internationalization speed of USOs is critically dependent on support from technology transfer offices; (2) in line with the “learning advantages of newness” perspective, younger Portuguese USOs reveal higher levels of entrepreneurial spirit and entrepreneurial capabilities, being in a better position to internationalize earlier than older USOs; (3) USOs that operate in microelectronics/robotics internationalize faster and earlier than USOs operating in ICT/software/digital media; and (4) in contrast with the literature on born globals/international new ventures, greater involvement in R&D activities slows down the early internationalization process of USOs.     

The influence of ownership structure on internationalization

Common reasons mentioned for a firm's internationalization are related to advantages for the firm. However, if firms are conceptualized as political coalitions, this view does not seem to be sufficient to explain why and to what extent firms internationalize. A principal-agent theoretical approach focusing the ownership-stake-related motivations and bargaining power of owners plus the range of actions managers can employ in different ownership situations offers an alternative explanation. We consequently studied the influences of ownership structure – defined as the concentration of ownership – on a firm's degree of internationalization and the main regions of international diversification. Overall, we conclude that the relationship is non-linear. To test our hypotheses, we utilize panel data for the 102 largest German manufacturing firms from 1990 to 2006. The analysis confirms our assumptions.     

The influence of international networks on internationalization speed and performance: A study of Czech SMEs

Drawing on social capital theory and the international entrepreneurship literature, we develop hypotheses relating the structural, cognitive and relational aspects of the international network of SME CEOs to two internationalization outcomes – speed and performance. The study is based on a sample of 155 Czech SMEs covering a broad range of manufacturing industries. Our findings indicate that firms sharing a common language with their international ties are able to internationalize faster than firms that do not share a common language. Moreover, we observe that geographically diverse networks contribute to superior performance. Extensive reliance on personal contacts hinders the performance of the first international venture.     

The effect of network competence and environmental hostility on the internationalization of SMEs

Research findings suggest that networks offer small and medium-sized enterprises (SMEs) opportunities to internationalize successfully. However, the role of internal organizational competence in the process of developing and maintaining such networks in hostile external environments has received little attention. The aim of this study is to shed light on the relationship by examining the positive influence that the network competence of SMEs has on their propensity to internationalize, and on their subsequent international performance. Given that the willingness of firms to enter and perform well in markets appears to also depend on environmental hostilities, this external influence on SME internationalization is incorporated into the study. We also examine whether the level of environmental hostility moderates the relationship between network competence and SME internationalization. The empirical part of the study comprises a web survey of 298 Finnish SMEs representing five different industry sectors: metal, food, furniture, software, and knowledge-intensive business services. Confirmatory factor analysis and regression models are used in the analysis. The results indicate that higher levels of network competence are positively related to the propensity of SMEs to internationalize, as well as to their international performance. Conversely, the level of environmental hostility has a negative effect on the performance measure, but not on the internationalization propensity. Additionally, the influence of network competence is not moderated by environmental hostility. The results indicate that internal network competence and external environmental hostility play a role in SME internationalization, and that the positive influence of network competence exists independently of the hostility in the environment.     

Rapid internationalization of emerging market firms—The role of geographic diversity and added cultural distance

In this study, we examine drivers of internationalization speed of emerging market multinational enterprises who have been known to internationalize rapidly, even to culturally distant countries. Drawing on the organizational learning theory, we argue that, devoid of a pre-existing knowledge base before they begin their international expansion, these firms are unencumbered by the pathologies and traps that are likely to slow a firm with pre-existing knowledge. We posit inverted U-shaped relationships between geographic scope and added cultural distance on the one hand, and internationalization speed of Indian software multinationals, on the other hand. We also hypothesize a moderating effect of the regularity of added cultural distance on the relationship between added cultural distance and internationalization speed. Our analyses of 650 internationalization expansions of 32 largest Indian software firms over a ten-year period support our hypotheses.     

Internationalizing Colleges of Business:

To successfully internationalize business curricula, colleges of business must apply strategic planning to internationalization efforts. After documenting the urgency for business schools to internationalize, a strategic planning model is applied in a stepby- step fashion to internationalization. We use our university's experience and efforts to focus on Japan to illustrate the model. The paper concludes with several recommendations, many of which have little direct costs for business schools.     

Ownership structure and internationalization of Indian firms

We examine the longitudinal relationship between ownership structure and firm internationalization, in a sample of Indian firms. Drawing on principal-principal (PP) agency theory and the resource-based-view (RBV) of the firm, we argue that divergent preferences (motivations) of a firm's owners affect the firm's propensity to internationalize, while resource heterogeneity among these owners (owners' capability to access and provide resources) affects the firm's capability to internationalize. We argue that both motivation and capability are required for firms to pursue internationalization and that when either of these is missing in an owner, that owner's shareholding will be negatively associated with internationalization. Additionally, our results uncover an interesting dichotomy. While family owners with lower levels of ownership favor their firms' internationalization, they do not favor it at higher levels of ownership. Our results indicate that foreign owners appeared to adjust their roles to accommodate the preferences of the dominant family owners.     

The role of market orientation,relational capital,and internationalization speed in foreign market exit and re-entry decisions under turbulent conditions

Firms’ internationalization strategies can vary with changing environments. Occasionally, a firm may choose to re-enter a foreign market it had abandoned in the past if environmental conditions have improved. The present study provides insight into the foreign market exit and subsequent re-entry processes. Specifically, we utilize the strategic flexibility perspective to investigate the impact of market orientation, relational capital, and internationalization speed on market exit and re-entry decisions under turbulence in a host market. Using a sample of 156 Turkish firms that operated during the Arab Spring in the Egyptian market between 2010 and 2015, we find that the market-oriented firms are more flexible in their market exit decisions than less market-oriented organizations. In addition, relational capital specific to the host country has a negative impact on market exit decisions under conditions of political conflict. The results also suggest that strong ties with partners in the host country increase the propensity to re-enter the market.     

“A roasted duck can still fly away”: A case study of technology,nationality, culture and the rapid and early internationalization of the firm

The possession of key international technical standards in some technology-based sectors can provide considerable advantages for firms wishing to internationalize rapidly and early. Avaro, a start-up Korean company, developed and owned a critical standard in the emerging international mobile payments industry. The company also enjoyed many of the other conditions conducive to successful internationalization, such as supportive international networks, encouraging government policy, attractive international market and financing opportunities and a munificent national technological and business home base. Yet the company's efforts at rapid and early internationalization failed. A multiplicity of factors explains how, despite its advantages, the company did not internationalize successfully. The paper highlights the importance of specific national and cultural factors constraining rapid and early internationalization. It argues that the nascent research field of international entrepreneurship has fully to account for the particular characteristics of technology products and markets, national business systems, and enduring cultural influences as it develops theoretical understanding of, and guides management practices in, emerging global technology markets.     

基于综合分析的货币国际化研究

货币国际化是发行国(地区)政治经济实力提升的表现和结果,是其国际政治经济权力增强的重要方式和途径,也是对现行国际货币体系的修正。货币国际化战略的实施需要满足一系列内核条件和支撑条件,这些条件在一定程度上决定了货币国际化的收益和成本。国际货币体系的不稳定性和不平衡性引致了改革的需求,也为新兴经济体的货币国际化提供了契机。货币国际化是一个不断推进的过程,货币发行主体应该根据已经具备的条件,并在成本-收益分析的基础上实现货币国际化的时间演进、层次深化和空间拓展。     

Internationalization as a driver of the corporate social performance of extractive industry firms

In this paper, we investigate the impact of internationalization on the corporate social performance (CSP) of extractive industry firms (EIFs). We argue that internationalization positively impacts their CSP because, as they internationalize, they increasingly benefit from actions that help them enhance their social licenses to operate (SLOs) and hence have a greater need to increase both the overall social (SP) and environmental (EP) aspects of their CSP. We hypothesize that as EIFs internationalize, both their SP and EP grow; that SP grows more relative to EP; and that the level of development of EIFs’ home countries moderates these relationships.     

A multidimensional perspective of SME internationalization speed: The influence of entrepreneurial characteristics

This paper contributes to a multidimensional perspective on the speed of SME internationalization. It examines the influence of entrepreneurial characteristics – experience, rationales and innovation strategies – on multiple dimensions of internationalization speed. Findings from a sample of 180 SMEs show that earliness, speed of deepening, and speed of geographic diversification can be viewed as three different strategic alternatives and that each dimension is predicted by a different set of entrepreneurial antecedents. Earliness of internationalization is associated with entrepreneurs’ international business experience and their perception of opportunities abroad as well as preference for an innovation strategy characterized by ambidextrous innovation. Speed of deepening is related to entrepreneurs’ international business experience, their orientation towards differentiation vis-à-vis competitors, and commitment to innovation and a strategy focusing on exploration. These results indicate the importance of distinguishing between different forms of innovation. Speed of geographic diversification is predicted only by entrepreneurs’ orientation towards differentiation vis-à-vis competitors.     

Internationalization Opportunities and Challenges for Small and Medium-Sized Enterprises from Developing Countries

The purpose of this study was to identify opportunities and challenges for internationalizing the small and medium-sized enterprises in developing countries. In this article the author examines the internationalization motives and strategies of the managers of these enterprises. A survey was conducted in Tanzania and the effect of the identified opportunities on the decision to internationalize was modeled using the multinomial logistic regression to determine the relationship between the respondent profile and the decision to be taken in the absence of the internationalization opportunities. The results have revealed the existing opportunities including export rehabilitation incentives, schemes as well as institutional supports granted from the governmental and nongovernmental organizations, development partners, and business associations. However, inadequate international business skills, unawareness of existing export promotion programs, poor access to finance, and imperfect foreign market information are the main challenges. Profit and growth goals and saturation of domestic markets are the key drives to internationalization, with indirect exporting being the main internationalization strategy. The author concludes by drawing attention to managerial and policy implications and future research directions.     

Influence of CEO characteristics in family firms internationalization

This research uses a survey dataset of 187 Spanish family firms to study the characteristics that may influence family firms in their decision of internationalize their activity. Based on individual and demographic variables, the study concludes that the CEO academic level of achievement influences the level of success in international expansion. In addition, the capacity for generating resources of the family firm provokes a lower resistance from family members to export. Moreover, we confirm that industry characteristics do matter in internationalization processes, noting that the specific market, product/service and technology characteristics influence the family firm internationalization. Contrary to expectations, the gender variable and the percentage of family members sitting on the board do not significantly predict the propensity to export.Our findings suggest family firm leaders seeking greater levels of firm internationalization to seriously consider the qualification level of their CEO. These insights can be useful for regulators who have to develop programs for supporting sales internationalization, as well as owners and managers of family firms, who need to understand the CEO abilities that may improve their capacity to internationalize their business.     

Independent directors’ human and social capital,firm internationalization and performance implications: An integrated agency-resource dependence view

Despite the importance of internationalization for many firms and the substantial roles of independent directors as monitors and resource providers in corporate strategic orientation, few, if any, studies have investigated how independent directors with human and social capital contribute to firm internationalization. Drawing upon agency and resource dependence theories, this study argues that independent directors with human and social capital provide firms with strategic advice and adequate resources for internationalization, thereby increasing firm willingness to internationalize. Using 173 Taiwanese electronics firms and a weighted linear fixed-effects regression approach, the results indicate that independent directors’ industry-specific experience, international experience and interlocking directorate ties are positively associated with internationalization and that an inverted-U relationship exists between independent directors’ tenure overlap and internationalization. One implication is that international firms may consider appointing independent directors with human and social capital to the board because they will provide firms with resources necessary for successful internationalization.     

Internationalization, Strategic Behavior, and the Small Firm: A Comparative Investigation

Previous research on the internationalization of the small firm explored the relationship between the adoption of a global orientation and strategic thinking. However, there was difference in opinion between those arguing that there is a positive relationship between the two variables and others who contended that small firms may internationalize by adopting a passive or reactive approach to the external environment. Within this context, this study sets out to further the discussion by comparing the experience of small enterprises with their medium and large-scale counterparts. In doing so, it draws upon the findings of survey of 1,000 internationalized enterprises located in the main urban conurbations of England. The results suggest that overall there is little disparity in strategy development among internationalized enterprises of different sizes. However, whereas the incidence of strategic behavior among medium and large businesses increases with the complexity of international operations, this is not the case for small firms.     

Extending the international new venture phenomenon to digital platform providers: A longitudinal case study

People increasingly interact with services enabled by digital platforms. This has been a consequence of the digitalization of artifacts, which has transmuted traditional businesses into digital forms. With the increasing digitalization and modularization of services, digital platforms have given many digital service providers possibilities to scale globally, and to rapidly transcend national borders by serving multi-sided markets. However, we still know very little about how digital platform providers actually internationalize their services, or how they make their platforms available for global markets. In this paper, we contribute to the increasing literature on digital-based INVs, examining how firms of this type internationalize their services, and more specifically, how recent technological developments have shaped the firms’ internationalization processes. Drawing on concepts from the network approach to internationalization, resource dependency theory, and INV theory, we extend the scope of INV theory via a model that encompasses the internationalization process of digital platform providers. We report on a longitudinal case study of a digital platform provider (covering the period 2000–2017), which allowed us to gain in-depth insight into the INV phenomenon.     

Navigating liminality in new venture internationalization

Prior research describes international expansion as a series of discrete steps and notes that taking them threatens new ventures' survival, especially due to unexpected setbacks. Seen through the lens of social science, the source of such threat becomes clearer. In this paper, we argue that internationalization in new ventures involves what social anthropologists call a liminal transition – a betwixt-and-between period lying between the intent to internationalize and the realization of a stable internationalized state. The ambiguous and transitory nature of this liminal transition has the potential to increase the odds of overreach (e.g. a high-cost market entry without sufficient resources). Avoiding the negative influence of liminality – and instead harnessing its positive effect – relies on three sources of support that we refer to as opportunity scaffolding: self-reflective learning, peer learning and consultative learning. We argue that entrepreneurs with personality profiles high in levels of core self-evaluation (CSE) are more likely to utilize the scaffolding like that available in business incubators effectively. This leads to the development of a more reflective mindset, making capability learning more likely, preventing decisions that lead to overreach and reducing the threat to INV survival. However we also strike a note of caution in that at excessive (hyper) levels of CSE, the internationalizing new venture could become the victim of hubris. Emboldened with unrealistically high self-confidence, hubristic entrepreneurs are more likely to rebuff use of scaffolding, leading to a more reactive mindset, increasing the probability of liminal overreach and threatening INV survival.

Born globals: A cross-country survey on high-tech start-ups

The paper empirically investigates what drivers affect the decisions of high-tech start-ups to internationalize from the outset, and their degree of born-globalness. The empirical data have been obtained from a cross-country survey on internationalized high-tech start-ups operating in the ICT and electronics sectors. The present findings show that the presence of a small domestic market and the scalability of the product put on sale have a positive effect on the probability of a start-up internationalizing from its inception. We have also observed that the niche strategy and the network relationships built up by the entrepreneur are key drivers for both an early internationalization and the scope of international expansion. The experiential knowledge and international commitment of an entrepreneur, as well as the diversity of team competences and organizational flexibility of a firm, have a significant impact on a born global's degree of born-globalness, although it is not a fundamental precondition for early internationalization.     

Keeping up with the neighbors: The role of cluster identity in internationalization

This paper explores the implications of the collective identity of a regional cluster on firms’ internationalization. Prior research has established the value of cluster “insidership” through access to knowledge and resources. Through a longitudinal study, we find that cluster identity, through distinct identity claims, provides imperatives and shapes the motivation of firms to internationalize. These imperatives, we argue, stem from cluster identity seen as defined features of regional collectives, extending reference theory to encompass the role of social cues from similar firms located geographically close. The imperatives are particularly salient in the early stages of firms’ internationalization, adding the role of cluster identity to explain the differences between inexperienced and experienced firms in internationalization.