New IE Articles

Journal of World Business – DOI: https://doi.org/10.1016/j.jwb.2019.101019

New venture adaptation in international markets: A goal orientation theory perspective

Anne Domurath,  Nicole Coviello, Holger Patzelt, Benjamin Ganal

This study uses goal orientation theory to investigate why managers of international new ventures make adaptations to markets served, entry modes used, and the organization. We use the case method to identify the international adaptation behaviours of six new ventures and managers’ explanations regarding those adaptations. We infer two different profiles of managerial goal orientation. The goal orientation associated with proving one’s competence is common across managers, but firms only pursue international adaptation if their managers also hold a learning goal orientation. In contrast, if managers have the goal orientation associated with avoiding failure, firm-level adaptation is not apparent.

Small Business Economics – DOI: https://doi.org/10.1007/s11187-019-00186-1

And yet, non-equity cooperative entries do improve international performance: Uncovering the role of networks’ social capital

Maria Ripollés, Andreu Blesa

Drawing on social capital theory, this study analyses the moderating role of social networks in the relation between international new ventures’ choice of non-equity cooperative entries and international performance. The research adopts an alternative point of view that considers that the development of social capital is dependent upon what actions an individual or group of people carry out to build and maintain social capital. Three relational norms have been associated with effective interaction among network partners, namely, informational exchange, organizational coordination and social conflict resolution. Through these relational norms, firms can co-create the structure of the social network and define what the network benefits and social capital are. Data gathered from a sample of international ventures operating in several industries support the idea that networks’ social capital endows international new ventures with informational advantages and experiential knowledge, which are important to reduce the problems associated with the non-equity entry mode choice when partners do not come from their networks. The results point to the need for INVs’ entrepreneurs to engage in establishing routines that enable them to develop management activities in coordination with their network members. The findings provide entrepreneurs of INVs with contextual evidence for making successful foreign market entry decisions.

Asia Pacific Journal of Management—DOI: https://doi.org/10.1007/s10490-020-09712-2

The internationalization of new ventures in an emerging economy: The shifting role of industry concentration

Abrar Ali Saiyed, Stephanie A. Fernhaber, Rakesh Basant, Karthik Dhandapani 

This paper examines the influence of firm rivalry within an industry on the internationalization of new ventures in an emerging economy. Drawing on industrial organization and institutional theories, it was hypothesized that the influence of industry concentration (an index of firm rivalry) on new venture internationalization changes with the deepening of economic liberalization processes. An analysis of new ventures from 67 Indian industries from 1996 to 2014 suggests that the relation between industry concentration and new venture internationalization shifts gradually from a U-shaped relation to an inverted U-shaped relation during this time period. Implications for the generalizability of research in an emerging economy across time are discussed.

Journal of Business Research – Volume 113, pgs: 25-38

Immigrant entrepreneurship: A review and research agenda

Marina Dabic, Bozidar Vlacic, Justin Paul, Leo-Paul Dana, Sreevas Sahasranamam, Beata Glinka

Immigrant entrepreneurship has become a phenomenon of global interest. This paper reviews existing immigrant entrepreneurship literature in order to map out the major streams of research and identify widely used theories, methods, and contexts. To do this, the authors have reviewed 514 articles from academic journals. This paper highlights the need for interdisciplinary approaches that transcend boundaries. The development and adoption of different theoretical frameworks, the use of multi-level methods, and the consideration of unexplored country contexts are among the authors’ recommendations for future research.

Journal of Small Business Management—DOI: https://doi.org/10.1111/jsbm.12510

How Do Innovation, Internationalization, and Organizational Learning Interact and Co-evolve in Small Firms? A Complex Systems Approach

Joan Freixanet, Alex Rialp, Iya Churakova

This study examines using a complex systems approach, the reciprocal relationships between innovation, internationalization, and organizational learning in small businesses. After analyzing 54 companies and purposefully selecting 12 particularly information?rich cases, we find that these three key activities are reciprocally linked to each other, forming a complex circular system. The firms’ evolution also shows that, faced with various change elements, the system evolved toward adopting one of up to four patterns of interaction, characterized by low and high incremental and radical innovation, local and global internationalization, and adaptive and generative learning. The findings are relevant to scholars, managers, and policy makers.