New IE Articles — November 2020

Journal of World Business – DOI: https://doi.org/10.1016/j.jwb.2020.101150

Managing internationalization and innovation tradeoffs in entrepreneurial firms: Evidence from transition economies

Mona Bahl, Somnath Lahiri, Debmalya Mukherjee

For entrepreneurial firms (EFs), internationalization and innovation present two major avenues for growth. Prior research, based primarily on EFs from advanced economies, demonstrates mixed insights for the relationship between these strategies. A deeper understanding of the tradeoffs involved in the internationalization-innovation relationship may help better comprehend the issue. In this study, we draw on the organizational learning and capabilities-based literatures to examine the relationship in the context of EFs in transition economies (EFTEs). Our findings suggest that in EFTEs, internationalization is negatively associated with the likelihood of innovation. We also find that three knowledge-based capabilities of EFTEs (absorptive capacity, appropriation capability, and managerial capability) positively moderate the aforementioned negative relationship. We do not find any evidence of reverse causality (EFTE innovation impacting internationalization). Our research provides novel insights to the IE literature by shedding light on the internationalization–innovation tradeoffs that EFTEs experience.

International Business Review – Volume 29 (Issue 5), DOI: https://doi.org/10.1016/j.ibusrev.2020.101725

How do cultural values influence entrepreneurial behavior of nations? A behavioral reasoning approach

Francesco Calza, Chiara Cannavale, Iman Zohoorian Nadali

Despite an abundance of research, still there is a gap in understanding the underlying cultural mechanisms behind entrepreneurial behavior of nations in the literature. This study contributes to the debate through a new perspective of analysis based on behavioral reasoning theory (BRT). Specifically, this research analyses the role cultural values play in formation of the reasoning behind entrepreneurial behavior. The data and variables are taken from the GLOBE project and the Global Entrepreneurship Monitor (GEM) for a multiple regression analysis spanning from 2007 to 2017 for 50 countries. The results show that, with the exception of Institutional Collectivism, all of GLOBE’s cultural dimensions affect the reasoning justifications behind entrepreneurial intentions in various countries. Thus, the novel contribution of the present research is the application of BRT in explaining entrepreneurial intentions. This contribution is substantial to the international entrepreneurship field through clarification of the role of cultural values in the reasoning processes behind entrepreneurial activities of nations. Some findings are surprising with regard to the conventional understandings. These findings are fully discussed in the concluding sections.

International Marketing Review – Volume 36 (Issue 6), pg. 830-858.  DOI: https://doi.org/10.1108/IMR-10-2018-0280

Gradual Internationalization vs Born-Global/International new venture models: A review and research agenda

Justin Paul, Alexander Rosado-Serrano

During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.