Short reviews

Bynner, J. and Roberts, K. (eds), 1991: Youth and Work: Transition to Employment in England and Germany, London: Anglo-German Foundation, £17 paper. Available from BEBC, 15 Albion Close, Parkstone, Poole, Dorset BH12 3LL

Brah, A. and Shaw, S. 1992: Working Choices: South Asian Young Muslim Women and the Labour Market, Sheffield: Department of Employment Research Paper No 91, free.     

The Dynamic Influence of Social Capital on the International Growth of New Ventures

This paper explores the origin, evolution, and appropriation of social capital by new ventures seeking international growth. Using longitudinal case studies in the software industry, we model the dynamic influence of social capital on new venture internationalization. We theorize that new ventures of founders from a globally‐connected environment, such as with return migration or MNC experience, have higher stocks of initial social capital than others. We provide a nuanced analysis of the dynamic processes involved in the evolution of social capital, and highlight the mechanisms of decay and replenishment over time. Network learning plays a critical role in new ventures' ability to realize the potential contribution of social capital to international growth.     

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.

Globalization,entrepreneurship and paradox thinking

Globalization has been facing a backlash. By contrast, entrepreneurship has come to be seen as a panacea for economic development and generating jobs that are perceived to be under threat from globalization. In this Perspectives paper, our central argument is that globalization and entrepreneurship must be viewed holistically, recognizing that globalization is an enabler of important entrepreneurship outcomes. We argue that networks created as a byproduct of globalization facilitate various forms of entrepreneurship. Interpersonal networks (e.g., diasporas) facilitate transnational entrepreneurship which can, in turn, reduce institutional distance between locations. Interorganizational networks (e.g., MNE-orchestrated ecosystems) facilitate technology entrepreneurship which reinforces the institutional work that gives rise to new technological domains and fields. Intergovernmental and civil society networks facilitate social entrepreneurship which helps redress institutional voids. Thus globalization can be a force for good by enabling forms of entrepreneurship that enable important institutional change. We highlight the importance of paradox thinking, which is rooted in ancient Chinese philosophy, in transcending an either/or perspective of globalization and entrepreneurship.     

Toward a Knowledge-Based Conceptualization of Internationalization

This conceptual paper contributes to the internationalization literature in response to previous criticisms by enabling the integration of apparently contradictory strands of the literature and incorporation of the potential role of the Internet. Knowledge is at the core of received wisdom on internationalization. This is consistent with the notion that internationalization represents an innovation of the firm and often entails decision-making under conditions of uncertainty, for both of which knowledge is vital. Given the link between knowledge and internationalization, apparent tensions in the literature can be resolved by recognizing its different types, consequently varying roles and diverse sources. Furthermore, network relationships—of growing significance in the literature—yield social capital, which in turn leads to knowledge acquisition and creation; thus it is worthwhile to integrate knowledge and social capital perspectives. Finally, consistent with the knowledge-based approach adopted in the paper, the application of Internet technology is conceptualized in terms of information effects viz., information dissemination, acquisition and sharing which could lead to, respectively, enhanced internationalization, knowledge and social capital.An earlier version of this paper was presented at the 2004 Academy of International Business Conference in Stockholm and the 2003 European Academy of International Business Conference in Copenhagen; the author thanks the respective discussants, Professors Jongmoo Jay Choi and Jan-Erik Vahlne, for their encouraging and helpful comments