No abstract

Two alternative diversification strategies-the geographic diversification of export sales and key market concentration-are extensively discussed in management, strategy, entrepreneurship, and economics literature. However, no conclusive evidence currently exists as to how either of these strategies affects the performance of international sales. This paper contributes to a better understanding of geographic diversification as a key dimension of the internationalization process for small and medium-sized enterprises (SMEs). In it, we analyze a comprehensive database of Polish exporters over a 3-year period to better understand the geographic diversification patterns of exporters. Based on this analysis, six propositions emerged from the export patterns examined and two viable strategies for exporting SMEs are identified: (1) concentrating on a single market and (2) a balanced approach aimed at targeting a small number of key markets, combined with a strategy of penetrating other markets. Implications for practice and future research are also discussed herein.

This article examines the speed of internationalization by newly established firms operating in the rapidly changing environment of a country undergoing radical systemic transition, as exemplified by Poland. A longitudinal analysis of the speed of internationalization, measured by the time between the year of establishment and the year of the first export sale, identified three interesting patterns. First, both incumbent state-owned firms and private companies operating under communism played marginal roles in the internationalization process after transition to the market economy system. Second, the entrepreneurial start-ups typically embarked on exports shortly after their establishment. Third, the entrepreneurial start-ups that focused initially on the domestic market were rarely engaging in export operations later on. This aspect of the internationalization process has not been adequately explained by the extant mainstream management theories (new institutional economics, transaction cost and resource-based view). This paper offers an alternative theoretical framework for the internationalization of entrepreneurial start-ups in transition economies by extending Shapero's social psychological model of entrepreneurial events.

No abstract

Countries vary widely and systematically in the extent to which the ambitions of their entrepreneurs differ from their realisations. We label this discrepancy entrepreneurial overconfidence (EOC). Although a certain level of EOC may be beneficial for an economy, we provide empirical support for the argument that if entrepreneurial ambitions substantially and systematically exceed realisations, this may be at the cost of economic and societal prosperity. Therefore, we need to know more about country levels of EOC and their determinants, particularly with respect to the growth-oriented segment of entrepreneurship. Combining data on entrepreneurial ambitions from Global Entrepreneurship Monitor and data on realisations from Eurostat, we construct a measure of EOC at the country level and correlate its variation across 23 European Union (EU) countries over the period 2004–2015 with a set of economic and cultural factors. Among other findings, our results show that ambitions exceed realisations in almost all countries, but that this discrepancy is significantly greater for new member countries entering the EU since 2004. Policy implications of our results are discussed, particularly for promoting ambitious entrepreneurship in countries at the intermediate development stage.