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international entrepreneurship notes
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What is International Entrepreneurship? .................................................................................... 1Opportunity recognition ............................................................................................................13
Opportunity development: networks .........................................................................................19
Opportunity development: experimentation ..............................................................................23
Capabilities ..............................................................................................................................37
International market selection ..................................................................................................46
Entry model selection ...............................................................................................................50
0
,What is International Entrepreneurship?
Infomedia mini case
Which factor(s) supported the early internationalization?
- Partners (active and passive) → go where largest partners are
- Costumers needs, location
- Superior technology
- Institutions (as a set of rules that guide behavior)
- Business model
- Entrepreneur experience
Which theories can be used to explain the early internationalization?
Technology-based early internationalizing ventures on campus
- Tide microfluidics
- Scisports → Dutch market too small
- Eurekit → flexible ceramic
EIV: an umbrella term for similar phenomena
International new ventures: “a business organization that, from inception (remains a bit vague, could be
from first employment), seeks to derive significant competitive advantage (export intensity) from the use of
resources and the sale outputs in multiple countries” (Oviatt and McDougall, 1994, p. 49)
Born global: „new venture that acts to satisfy a global niche from day one” … “new ventures that are
international by design and not by emergence” (Tanev 2012)
“small, [usually] technology-oriented companies that operate in international markets from the earliest days
of their establishment” (Knight&Cavusgil, 1996, p. 11)
Hard criteria:
- Speed: < 3 years
- Export intensity: >25%
- Scope: number of countries resp. continents (across continents from U.S. perspective, so not to Canada)
- Size: usually SME (small and medium-sized enterprises)
What makes technology-based EIV special?
Two problems:
- liability of size → fewer financial resources, no slack for cultural culture, lack of economies of scale
- liability of new → no reputation
These two combined lead to a low percentage of success after
- market uncertainty → lack of knowledge of the customer base
- tech uncertainty → may need to scale in order
- liability of outsidership → since you’re new to the host country you don’t know the institutions
1
,Is it worth it? TBEIV and success
Performance: multidimensional
Degree: % intl. sales to total
Scope: of countries
Speed: age at first international activity
Tech base: shares of knowledge expenditures
Performance – Degree: .10 → significant correlation
Performance – Scope: .017 → significant correlation
Performance – Speed: .009n.s.
Degree Knowledge Intensity: .004: n.s.
Scope Knowledge Intensity: -.11
Speed Knowledge Intensity: .11
Learning advantage of newness balances with liability of newness.
Tech firms can leverage easier
Country and industry factors
Denmark has the highest
percentage of international new
ventures, may be due to
institutional factors (i.e., no
taxation - Romania)
Japan and Hungary → traditional
business country and lack of
innovation in technology
Industry factors
Home country factors
• Small home country (not large
enough for operations and
innovation)
• Few trade barriers
Host market factors
• Many international customers resp.
customers with overseas operations
• Customer needs are standard across
country markets
• High value in relation to
transportation and service costs
Human capital
Entrepreneurship research “[…] encompasses the study of processes [...] of development of ventures. This
entails the study of the origins of ventures, their characteristics and the execution of task as well as the
contextual fit, and of how the management and development of ventures is linked to different types of direct
and indirect antecedents and outcomes on different levels of analysis” (adapted from Davidsson 2005, p. 30).
Network level is missing in the schema (4 levels), but also the partner network is important as well.
2
, We have multilevel explanations that can have impact on different thinks, in particular in this case value
creation (op. recognition, preparation, explanation...).
Value creation – what is international entrepreneurship?
“the discovery, enactment, evaluation, and exploitation of opportunities - across national borders to create
future goods and services. It follows, therefore, that the scholarly field of international entrepreneurship
examines and compares - across national borders - how, by whom, and with what effects those opportunities
are acted upon”
→ particular difficulty of opportunity recognition in international context is knowing the needs well enough
(tastes, culture)
AI could help us analyse data from social media, analyse custumer reviews to get idea of what costumers
value, also cultural bias (mainly U.S. based data)
A more refined model of IE research landscape (Tabares et. Al. 2021)
Important the logic more than content
3
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