Skip to main content

Industry Factors Influencing International New Ventures’ Internationalisation Processes

  • Chapter
The Rise of Multinationals from Emerging Economies

Part of the book series: The Academy of International Business ((AIB))

  • 323 Accesses

Abstract

There exists a growing body of literature examining firms that internationalise soon after their inception. Such firms are commonly referred to as international new ventures (INVs) and are defined as ‘business organisations that from inception seek to derive significant competitive advantages from the use of resources and the sale of outputs in multiple countries’ (Oviatt and McDougall, 1994: 49). Although many terms now define the phenomenon, those of ‘born global’ and ‘international new venture’ have become somewhat interchangeable, as have the criteria used to categorise them. In this chapter we mostly use the INV term because this can be seen as more encompassing.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Subscribe and save

Springer+ Basic
$34.99 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 54.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Similar content being viewed by others

References

  • Abouzeedan, A., Busler, M. (2007) ‘Internetisation management: the way to run the strategic alliances in the e-globalization age.’ Global Business Review, 8(2), 303–321.

    Article  Google Scholar 

  • Al-Laham, A., Souitaris, V. (2008) ‘Network embeddedness and new-venture internationalization: analyzing international linkages in the German biotech industry.’ Journal of Business Venturing, 23(5), 567–586.

    Article  Google Scholar 

  • Anderson, P., Tushman, M.L. (1990) ‘Technological discontinuities and dominant designs: a cyclical model of technological change.’ Administrative Science Quarterly, 354, 604–633.

    Article  Google Scholar 

  • Andersson, S. Evers, N., Kuivalainen, O. (2014) ‘International new ventures: rapid internationalization across different industry contexts.’ European Business Review, 26(5), 390–405.

    Article  Google Scholar 

  • Andersson, S. (2000) ‘Internationalization of the firm from an entrepreneurial perspective.’ International Studies of Management and Organization, 30(1), 63–92.

    Google Scholar 

  • Andersson, S. (2004) ‘Internationalization in Different Industrial Contexts.’ Journal of Business Venturing, 19(6), 851–875

    Article  Google Scholar 

  • Andersson, S. (2006) ‘International growth strategies in consumer and business-to-business markets in manufacturing and service sectors.’ Journal of Euromarketing, 15(4), 35–56.

    Article  Google Scholar 

  • Andersson, S. (2011) ‘International entrepreneurship, born globals and the theory of effectuation.’ Journal of Small Business and Enterprise Development, 18(3), 627–643.

    Article  Google Scholar 

  • Andersson, S., Evangelista, F. (2006) ‘The Entrepreneur in the Born Global Firm in Australia and Sweden.’ Journal of Small Business and Enterprise Development, 13(4), 642–659.

    Article  Google Scholar 

  • Andersson, S., Evers, N., Griot, C. (2013) ‘Local and international networks in small firm internationalisation: cases from the Rhône-Alpes medical technology regional cluster.’ Entrepreneurship and Regional Development, 25(9–10), 867–888.

    Article  Google Scholar 

  • Andersson, S., Gabrielsson, J., Wictor, I. (2006) ‘Born globals’ market channel strategies.’ International Journal of Globalisation and Small Business, 1(4), 356–373.

    Article  Google Scholar 

  • Andersson, S., Wictor, I. (2003) ‘Innovative internationalisation in new firms: born globals — the Swedish case.’ Journal of International Entrepreneurship, 1(3), 249–276.

    Article  Google Scholar 

  • Ball, D.A., Lindsay, V.J., Rose, E.L. (2008) ‘Rethinking the paradigm of service inter-nationalisation: Less resource-intensive market entry modes for information-intensive soft services.’ Management International Review, 48(4), 413–431.

    Article  Google Scholar 

  • Bell, J. (1995) ‘The internationalization of small computer software firms — a further challenge to “stage” theories.’ European Journal of Marketing, 29(8), 60–75.

    Article  Google Scholar 

  • Bell, J., Crick, D., Young, S. (2004) ‘Small firm internationalisation and business strategy: an exploratory study of “knowledge-intensive” and “traditional” manufacturing firms in the UK.’ International Small Business Journal, 22(1), 23–56.

    Article  Google Scholar 

  • Benito, G.R.G. (2005) ‘Divestment and international business strategy.’ Journal of Economic Geography, 5(2), 235–251.

    Article  Google Scholar 

  • Blomstermo, A., Sharma, D.D., Sallis, J. (2006) ‘Choice of foreign market entry mode in service firms.’ International Marketing Review, 23(2), 211–229.

    Article  Google Scholar 

  • Bloodgood, J.M., Sapienza, H.J., Almeida, J.G. (1996) ‘The internationalization of new high-potential US ventures: antecedents and outcomes.’ Entrepreneurship Theory and Practice, 20(4), 61–76.

    Google Scholar 

  • Boter, H., Holmquist, C. (1996) ‘Industry characteristics and internationalisation processes in small firms.’ Journal of Business Venturing, 11(6), 471–487.

    Article  Google Scholar 

  • Burgel, O., Murray, G.C. (2000) ‘The International Market Entry Choices of Start-Up Companies in High-Technology Industries.’ Journal of International Marketing, 8, 33–62.

    Article  Google Scholar 

  • Calof J.L., Beamish P.W. (1995) ‘Adapting to Foreign Markets: Explaining Internationalization.’ International Business Review, 4(2), 115–131

    Article  Google Scholar 

  • Caves, R.E. (1996) Multinational Enterprise and Economic Analysis. 2nd edition, Cambridge: Cambridge University Press.

    Google Scholar 

  • Cloninger, P.A., Oviatt, B. (2007) ‘Service content and the internationalization of young ventures: An empirical test.’ Entrepreneurship Theory and Practice, 31(2), 233–256.

    Article  Google Scholar 

  • Colovic, A., Lamotte, O. (2014) ‘The role of formal industry clusters in the internationalization of new ventures.’ European Business Review, 26(5), 449–470.

    Article  Google Scholar 

  • Coviello, N.E. (2006) ‘The network dynamics of international new ventures.’ Journal of International Business Studies, 37, 713–731.

    Google Scholar 

  • Coviello, N., Jones, M.V. (2004) ‘Methodological issues in international entrepreneurship research.’ Journal of Business Venturing, 19, 485–508

    Article  Google Scholar 

  • Crick, D., Jones, M.V. (2000) ‘Small high-technology firms and international hightechnology markets.’ Journal of International Marketing, 8(2), 63–85.

    Article  Google Scholar 

  • Crick, D., Spence, M. (2005) ‘The internationalisation of “high performing” U.K. high-tech SMEs: a study of planned and unplanned strategies.’ International Business Review, 14, 167–185.

    Article  Google Scholar 

  • Dean, T.J., Meyer, G.D. (1996) ‘Industry environments and new venture formations in U.S. manufacturing: a conceptual and empirical analysis of demand determinants.’ Journal of Business Venturing, 11, 107–132.

    Article  Google Scholar 

  • Eisenhardt, K., Schoonhoven, C. (1990) ‘Organizational Growth: Linking Founding Team, Strategy, Environment, and Growth among U.S. Semiconductor Ventures.’ Administrative Science Quarterly, 35, 504–529.

    Article  Google Scholar 

  • Etemad, H. (1999) ‘Globalisation and the small and medium-sized enterprises: search for potent strategies.’ Global Focus, 11(3), 385–104.

    Google Scholar 

  • Evers, N. (2010) ‘Factors influencing the internationalization of new ventures in the Irish aquacultural industry: an exploratory study.’ Journal of International Entrepreneurship, 8(4), 392–416.

    Article  Google Scholar 

  • Evers, N., O’Gorman, C. (2011) ‘Improvised Internationalisation in new ventures: The role of prior knowledge and networks.’ Entrepreneurship and Regional Development, 23(7–8), 549–574.

    Article  Google Scholar 

  • Evers, N. (2011) ‘International new ventures in low tech sectors — a dynamic capabilities perspective.’ Journal of Small Business & Enterprise Development, 18(3), 502–528.

    Article  Google Scholar 

  • Evers, N (2011) ‘Factors influencing new venture internationalisation: a review of the literature.’ Irish Journal Of Management, 30(2), 17–46.

    Google Scholar 

  • Evers, N., Andersson, S., Hannibal, M. (2012) ‘Stakeholders and marketing capabilities in international new ventures: evidence from Ireland, Sweden and Denmark.’ Journal of International Marketing, 20(4), 46–71.

    Article  Google Scholar 

  • Eerrell, O.C., Tracey L. Gonzalez-Padron, G., Huit, T.M., Maignan, I. (2010) ‘Erom Market Orientation to Stakeholder Orientation.’ Journal of Public Policy & Marketing, 19(Spring), 93–96.

    Google Scholar 

  • Fernhaber, S., McDougall, P.P., Oviatt, B.M. (2007) ‘Exploring the role of industry structure in new venture internationalization.’ Entrepreneurship Theory & Practice, 31(4), 517–542.

    Article  Google Scholar 

  • Gabrielsson, M., Kirpalani, V.H.M., Luostarinen, R. (2002) ‘Multiple sales channel strategies in the European PC industry.’ Journal of International Marketing, 10(3), 73–95.

    Article  Google Scholar 

  • Gabrielsson, P., Gabrielsson, M. (2013) ‘A dynamic model of growth phases and survival in international business-to-business new ventures: The moderating effect of decision-making logic.’ Industrial Marketing Management, 42(8), 1357–1373.

    Article  Google Scholar 

  • Ghannad, N., Andersson, S. (2012) ‘The influence of the entrepreneur’s background on the behaviour and development of born globals’ internationalisation processes.’ International Journal of Entrepreneurship and Small Business, 15(2), 136–153.

    Article  Google Scholar 

  • Ghoshal, S. (1987) ‘Global Strategy: An organizing framework.’ Strategic Management Journal, 8, 425–440.

    Article  Google Scholar 

  • Gliga, G., Evers, N. (2010) ‘Marketing challenges for high tech SMEs.’ Innovation Marketing, 3(6), 104–112.

    Google Scholar 

  • Graham, E.M. (1978) ‘Transatlantic investment by multinational firms: a rivalistic phenomenon?.’ Journal of Post-Keynesian Economics, 1(1), 82–99.

    Article  Google Scholar 

  • Grogaard, B., Gioia, C., Benito, G. (2005) ‘An empirical investigation of the role of industry factors in the internationalization patterns of firms.’ SMG working paper.

    Google Scholar 

  • Hånell Melen, S., Rovira Nordman, E., Sharma, D.D. (2014) ‘The Continued Internationalization of the International New Venture.’ European Business Review, 26(5), 471–490.

    Article  Google Scholar 

  • Johanson, J., Vahlne, J.-E. (1977) ‘The internationalization process of the firm — A model of knowledge development and increasing foreign market commitments.’ Journal of International Business Studies, 8(1), 23–32.

    Article  Google Scholar 

  • Johanson, J., Vahlne, J.-E. (1990) ‘The mechanism of internationalisation.’ International Marketing Review, 7(4), 11–24.

    Article  Google Scholar 

  • Johnson, J. (2004) ‘Factors Influencing the Early Internationalisation of High Technology Start-Ups: US and UK Evidence.’ Journal of International Entrepreneurship, 2, 139–154.

    Article  Google Scholar 

  • Jolly, V., Alahuhta, M., Jeannet, J. (1992) ‘Challenging the Incumbents: How High-Technology Start-Ups Compete Globally.’ Journal of Strategic Change, 1, 71–82.

    Article  Google Scholar 

  • Jones, M.V., Coviello, N.E. (2005) ‘Internationalisation: Conceptualising an entrepreneurial process of behaviour in time.’ Journal of International Business Studies, 36(3), 284–303.

    Article  Google Scholar 

  • Jones, M.V., Coviello, N., Tang, Y.K. (2011) ‘International entrepreneurship research (1989–2009): a domain ontology and thematic analysis.’ Journal of Business Venturing, 26(6), 632–659.

    Article  Google Scholar 

  • Kiss, A.M., Danis, W.M., Cavusgil, S.T. (2012) ‘International entrepreneurship research in emerging economies: a critical review and research agenda.’ Journal of Business Venturing, 27(2), 266–290.

    Article  Google Scholar 

  • Knight, G.A., Cavusgil, S.T. (1996) ‘The born global firm: A challenge to traditional internationalization theory.’ Advances in International Marketing, 8, 11–26.

    Google Scholar 

  • Knight, G.A., Cavusgil, S.T. (2004) ‘Innovation, organizational capabilities, and the born-global firm.’ Journal of International Business Studies, 35(2), 124–141.

    Article  Google Scholar 

  • Knight, J., Bell, J., McNaughton, R. (2001) ‘Born globals: old wine in new bottles.’ ANZMAC Conference. Proceedings. Bridging Marketing theory and practice, Auckland, New Zealand.

    Google Scholar 

  • Kotha, S., Rindova, V.P., Rothaermel, F.T. (2001) ‘Assets and Actions: Firm-Specific Factors in the Internationalization of U.S. Internet Firms.’ Journal of International Business Studies, 32, 769–791.

    Article  Google Scholar 

  • Kuivalainen, O., Lindqvist, J., Saarenketo, S., Äijö, T. (2007) ‘International growth of Finnish software firms: starting points, pathways and outcomes.’ Journal of Euromarketing, 161/2, 7–22.

    Article  Google Scholar 

  • Kuivalainen, O., Puumalainen, K., Sintonen, S., Kyläheiko, K. (2010) ‘Organisational capabilities and internationalisation of the small and medium-sized information and communications technology firms.’ Journal of International Entrepreneurship, 8(2), 135–155.

    Article  Google Scholar 

  • Kuivalainen, O., Saarenketo, S., Puumalainen, K. (2012) ‘Start-up patterns of internationalization — a framework and its application in the context of knowledge-intensive SMEs.’ European Management Journal, 30(4), 372–385.

    Article  Google Scholar 

  • Laurell, H., Andersson, S., Achtenhagen, L. (2013) ‘The importance of industry context for new venture internationalisation: a case study from the life sciences.’ Journal of International Entrepreneurship, 11(4), 297–319.

    Article  Google Scholar 

  • McDougall, P.P., Shane, S., Oviatt, B.M. (1994) ‘Explaining the formation of international new ventures: the limits of theories from international business research.’ Journal of Business Venturing, 9, 469–487.

    Article  Google Scholar 

  • Mort, G.S., Weerawardena, J. (2006) ‘Networking capability and international entre-preneurship: how networks function in Australian born global firms.’ International Marketing Review, 23(5), 549–572.

    Article  Google Scholar 

  • O’Gorman, C., Evers, N. (2011) ‘Network intermediaries in the internationalization of new firms in peripheral regions.’ International Marketing Review, 28(4), 340–364.

    Article  Google Scholar 

  • Oviatt, B.M., McDougall, P.P. (1994) ‘Toward a theory of international new ventures.’ Journal of International Business Studies, 25(1), 45–64.

    Article  Google Scholar 

  • Peiris, I.K., Akoorie, M.E.M., Sinha, P. (2012) ‘International entrepreneurship: a critical analysis of studies in the past two decades and future directions for research.’ Journal of International Entrepreneurship, 10(4), 279–324.

    Article  Google Scholar 

  • Persson, S.G., Steinby, C. (2006) ‘Networks in a Protected Business Context: Licenses as Restraints and Facilitators.’ Industrial Marketing Management, 35, 870–880.

    Article  Google Scholar 

  • Porter, M.E. (1980) Competitive Strategy. New York: Free Press.

    Google Scholar 

  • Porter, M.E. (1986) Competition in Global Industries. Boston: Harvard Business School Press.

    Google Scholar 

  • Porter, M.E. (1990) ‘The competitive advantage of nations.’ Harvard Business Review, March-April, 73–93.

    Google Scholar 

  • Porter, M.E. (1998) ‘Clusters and competition: new agendas for companies, governments and institutions.’ In M.E. Porter (Ed.). On Competition. Boston: Harvard Business School.

    Google Scholar 

  • Preece, S.B., Miles, G., Baetz, M.C. (1999) ‘Explaining International Intensity and Global Diversity of Early-Stage Technology-Based Firms.’ Journal of Business Venturing, 14, 259–281.

    Article  Google Scholar 

  • Rialp, A., Rialp, J., Knight, G.A. (2005) ‘The phenomenon of early internationalizing firms: what do we know after a decade (1993–2003) of scientific inquiry?.’ International Business Review, 14(2), 147–166.

    Article  Google Scholar 

  • Rovira Nordman, E., Melén, S. (2008) ‘The impact of different kinds of knowledge for the internationalization process of born globals in the biotech business.’ Journal of World Business, 43(2), 171–185.

    Article  Google Scholar 

  • Ruzzier, M., Antoncic, B., Hisrich, R.D. (2007) ‘The internationalization of SMEs: developing and testing a multi-dimensional measure on Slovenian firms.’ Entrepreneurship and Regional Development, 19, 161–183.

    Article  Google Scholar 

  • Sarasvathy, S.D. (2001) ‘Causation and effectuation: toward a theoretical shift from economic inevitability to entrepreneurial contingency.’ Academy of Management Review, 26(2), 243–263.

    Google Scholar 

  • Sheth, J.N., Sisodia, R. (2002) The Rule of Three: Surviving and Thriving in Competitive Markets. New York: Free Press.

    Google Scholar 

  • Shrader, R.C., Oviatt, B.M., McDougall, P.P. (2000) ‘How new ventures exploit trade-offs among international risk factors: lessons for accelerated internationalisation of the 21st century.’ Academy of Management Journal, 43(6), 1227–1247.

    Article  Google Scholar 

  • Spence, M. and Crick, D. (2006) ‘A comparative investigation into the internationalization of Canadian and UK high-tech SMEs.’ International Marketing Review, 22(5), 524–548.

    Google Scholar 

  • Solberg, C.A. (1997) Framework for Analysis of Strategy Development in Globalizing Markets.’ Journal of international Marketing, 5(1), 294–306.

    Google Scholar 

  • Stremersch, S., Van Dyck, W. (2009) ‘Marketing of the Life Sciences: A New Framework and Research Agenda for a Nascent Field.’ Journal of Marketing, 73, 4–30.

    Article  Google Scholar 

  • Svensson, G. (2006) ‘A quest for a common terminology: the concept of born globals.’ Management Decision, 44(9), 1311–1317.

    Article  Google Scholar 

  • Tushman, M.L., Anderson, P. (1986) ‘Technological discontinuities and organizational environments.’ Administrative Science Quarterly, 31(3), 439–465.

    Article  Google Scholar 

  • Van de Ven, A.H. And Garud R. (1989) ‘A Framework for Understanding the Emergence of New Industries.’ Research on Technological Innovation Management and Policy, 4, 295–325.

    Google Scholar 

  • Zahra, S.A., Ireland, R.D., Hitt, M.A. (2000) ‘International expansion by new venture firms: international diversity, mode of market entry, technological learning and performance.’ Academy of Management Journal, 43(5), 925–950.

    Article  Google Scholar 

  • Zahra, S., George, G. (2002) ‘International entrepreneurship: The current status of the field and future research agenda.’ In M. Hitt, D. Ireland, D. Sexton and M. Camp (Eds). Strategic entrepreneurship: Creating an integrated mindset. Oxford: Blackwell, pp. 255–288.

    Google Scholar 

  • Zhou, L. (2007) ‘The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization.’ Journal of World Business, 42, 281–293.

    Article  Google Scholar 

  • Zucchella, A., Palamara, G., Denicolai, S. (2007) ‘The drivers of the early internationalization of the firm.’ Journal of World Business, 42(3), 268–280.

    Article  Google Scholar 

Download references

Authors

Editor information

Editors and Affiliations

Copyright information

© 2015 Natasha Evers, Olli Kuivalainen and Svante Andersson

About this chapter

Cite this chapter

Evers, N., Kuivalainen, O., Andersson, S. (2015). Industry Factors Influencing International New Ventures’ Internationalisation Processes. In: Konara, P., Ha, Y.J., McDonald, F., Wei, Y. (eds) The Rise of Multinationals from Emerging Economies. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9781137473110_13

Download citation

Publish with us

Policies and ethics