New IE Articles: November 2023

Management International Review – Volume 63, pp. 673-696, DOI: https://doi.org/10.1007/s11575-023-00510-8

Anywhere in the World? The Internationalization of Small Entrepreneurial Ventures using a Social Media Platform

da Fonseca, L.N.M., Kogut, C.S. & da Rocha, A.  

This study aimed at investigating the interplay between internationalization and digitalization using a social media platform during the early phases of the internationalization process of new ventures from an emerging economy. The research adopted the longitudinal multiple-case study method of investigation. All the firms that were studied had operated on a social media platform (Instagram) since their inception. Data collection was based on two rounds of in-depth interviews and secondary data. The research used thematic analysis, cross-case comparison and pattern-matching logic. The study contributes to the extant literature by (a) proposing a conceptualization of the interplay between digitalization and internationalization during the early phases of the internationalization trajectory of small new ventures from an emerging economy using a social media platform; (b) detailing the role of the diaspora during the outward internationalization of these ventures and outlining the theoretical implications of this phenomenon; and (c) providing a micro perspective on how entrepreneurs exploit platform resources and face platform-related risks during their enterprise’s early domestic and international phases.

Journal of Business Venturing – Volume 39 (Issue 1), DOI: https://doi.org/10.1016/j.jbusvent.2023.106363

Interorganizational triads for foreign-market entry: Partnerships among Western, bridge-economy, and local VCs in Mainland China

Jing Zhang, Wei Zhang, Andreas Schwab

This study introduces the novel construct of bridge-economy partners, which can assist Western firms in learning how to collaborate with local partners when entering unfamiliar foreign countries that have substantially different socioeconomic characteristics. We offer initial empirical evidence regarding the relevance of establishing such interorganizational partnership triads among Western, bridge-economy, and local firms for the entries of Western venture capital firms (VCs) into Mainland China between 1997 and 2008. Venture age, regional legal maturity, and the Western VCs’ accumulated local experience are identified as relevant contingency factors for the likelihood of adopting this type of collaboration, which involves partners from three different types of economies. We supplement our quantitative analyses with anecdotal qualitative evidence from interviews with VC executives and fund managers.