The Speed and Extent of New Venture Internationalisation in the Emerging Economy Context
Objective: The objective of this paper is to explore to what extent the patterns of the internationalisation process described in the new venture (NV) internationalisation theory, developed on the experience and practice of advanced economy firms, apply to the emerging economy context.
Research Design & Methods: The paper is a systematic literature review developed on the basis of peer reviewed journal articles on NV internationalisation in emerging economies. It critically evaluates the applicability of arguments proposed by the NV internationalisation theory to the emerging economy context.
Findings: In contrast to firms from advanced economies, internationalisation of NV from emerging economies is mainly driven by push factors related to their domestic markets. Transportation, communication and digital technology play a less relevant role in emerging economies; besides, their significance is more context specific; while their absence does not inhibit rapid internationalisation.
Implications & Recommendations: To better understand the process of NV internationalisation in the emerging economy context, it is necessary to study to what extent other theoretical logics contribute to its explication. Further research should also seek to synthesise findings of research on other major theoretical frameworks.
Contribution & Value Added: The paper contributes to the NV internationalisation theory by offering some propositions on the specifics of international entrepreneurship in the emerging economy context.
international entrepreneurship; entry speed; entry scope; emerging economy; international new venture; INV
Alon, I., Yeheskel, O., Lerner, M., & Zhang, W. (2013). Internationalization of Chinese Entrepreneurial Firms. Thunderbird International Business Review, 55(5), 495-512.
Amal, M., & Rocha Freitag Filho, A. (2010). Internationalization of small‐ and medium‐sized enterprises: a multi case study. European Business Review, 22(6), 608-623.
Autio, E., Sapienza, H.J., & Almeida, J.G. (2000). Effects of Age at Entry, Knowledge Intensity, and Imitability on International Growth. The Academy of Management Journal, 43(5), 909-924.
Cieslik, J., & Kaciak, E. (2009). The speed of internationalization of entrepreneurial start-ups in a transition environment. Journal of Developmental Entrepreneurship, 14(04), 375-392.
Ciravegna, L., Majano, S.B., & Zhan, G. (2014). The inception of internationalization of small and medium enterprises: The role of activeness and networks. Journal of Business Research, 67(6), 1081-1089.
Dib, L., da Rocha, A., & da Silva, J. (2010). The internationalization process of Brazilian software firms and the born global phenomenon: Examining firm, network, and entrepreneur variables. Journal of International Entrepreneurship, 8(3), 233-253.
Dimitratos, P., Amorós, J.E., Etchebarne, M.S., & Felzensztein, C. (2014). Micro-multinational or not? International entrepreneurship, networking and learning effects. Journal of Business Research, 67(5), 908-915.
Harzing, A.W. (2014). Journal Quality List. Retrieved on March 15, 2015 from http://www.harzing.com/
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.
Johanson, J., & Vahlne, J.-E. (1990). The mechanism of internationalisation. International Marketing Review, 7(4), 11-24.
Karadeniz, E.E., & Göçer, K. (2007). Internationalization of small firms: A case study of Turkish small and medium-sized enterprises. European Business Review, 19(5), 387-403.
Kiss, A.N., 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. doi: 10.1016/j.jbusvent.2011.09.004
Liu, X., Xiao, W., & Huang, X. (2008). Bounded entrepreneurship and internationalisation of indigenous Chinese private-owned firms. International Business Review, 17(4), 488-508.
Manolova, T.S., Manev, I.M., & Gyoshev, B. S. (2010). In good company: The role of personal and inter-firm networks for new-venture internationalization in a transition economy. Journal of World Business, 45(3), 257-265.
Musteen, M., Francis, J., & Datta, D.K. (2010). The influence of international networks on internationalization speed and performance: A study of Czech SMEs. Journal of World Business, 45(3), 197-205.
Naudé, W., & Rossouw, S. (2010). Early international entrepreneurship in China: Extent and determinants. Journal of International Entrepreneurship, 8(1), 87-111.
Nowiński, W., & Rialp, A. (2013). Drivers and strategies of international new ventures from a Central European transition economy. Journal for East European Management Studies, 18(2), 191-231.
Oviatt, B.M., & McDougall, P.P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1)45-64.
Oviatt, B.M., & McDougall, P.P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537-554.
Thai, M.T.T., & Chong, L.C. (2008). Born-global: The case of four Vietnamese SMEs. Journal of International Entrepreneurship, 6(2), 72-100.
Vissak, T. (2007). The Emergence and Success Factors of Fast Internationalizers. Journal of East-West Business, 13(1), 11-33.
Wach, K. (2015). Entrepreneurship without Borders: Do Borders Matter for International Entrepreneurship? Problemy Zarządzania, 13(1), part 2(51), 82-92.
Wach, K., & Wehrmann, C. (2014). Entrepreneurship in International Business: International Entrepreneurship as the Intersection of Two Fields (chapter 1). In: Gubik, A.S. & Wach, K. (Eds.), International Entrepreneurship and Corporate Growth in Visegrad Countries (pp. 9-22). Mickolc: University of Miskolc.
Wood, E., Khavul, S., Perez-Nordtvedt, L., Prakhya, S., Velarde Dabrowski, R., & Zheng, C. (2011). Strategic Commitment and Timing of Internationalization from Emerging Markets: Evidence from China, India, Mexico, and South Africa. Journal of Small Business Management, 49(2), 252-282. doi: j.1540-627X.2011.00324.x
Wright, M., Filatotchev, I., Hoskisson, R.E., & Peng, M.W. (2005). Strategy Research in Emerging Economies: Challenging the Conventional Wisdom. Journal of Management Studies, 42(1), 1-33.
Xu, D., & Meyer, K.E. (2013). Linking theory and context:‘Strategy research in emerging economies’ after Wright et al.(2005). Journal of Management Studies, 50(7), 1322-1346.
Zhou, L. (2007). The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization. Journal of World Business, 42(3), 281-293.
Zhou, L., Wu, W.-P., & Luo, X. (2007). Internationalization and the performance of born-global SMEs: the mediating role of social networks. Journal of International Business Studies, 38(4), 673-690.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a CC BY-ND licence that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are asked to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) only the final version of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access). We advise using any of the following research society portals: