Risk bias and the link between motivation and new venture post-entry international growth |
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| Authors: | Andreea N Kiss David W Williams Susan M Houghton |
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| Institution: | 1. Faculty of Economics and Business, University of Groningen, 800 Postbus, 9700 AV Groningen, The Netherlands;2. College of Business Administration, The University of Tennessee, 416 Stokely Management Center, 916 Volunteer Boulevard, Knoxville, TN 37996-0545, USA;3. School of Business and Economics, North Carolina A&T State University, Quiester Craig Hall, Greensboro, NC 27411, USA |
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| Abstract: | We link research in international entrepreneurship and on behavioral decision making with the international business literature on firm degree of internationalization to advance an integrative model of new venture post-entry international growth. We test this model on a sample of 286 new ventures. Results demonstrate that the extent to which entrepreneurs perceive internationalization choices more or less risky than an objective standard (i.e. internationalization risk bias) leads to variations in international growth rates, in particular international scope. Further, we show that the decision-maker's motivation leads to differences in both internationalization risk bias and international scope. |
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