Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Abstract

Previous research has emphasized the importance of entrepreneurial characteristics for international entrepreneurship, hence the application of concepts such as entrepreneurial orientation and global mindset to the study of entrepreneurial internationalization tendencies (EIT). However, literature does not adequately address how EIT differ between countries or manifest in fragile country settings. We address this gap through a quantitative study to investigate EIT in two national settings that largely differ in terms of development, institutional stability, and culture. Through the lens of the institutional theory and the mindset theory, we therefore piloted the study on 112 high-growth startups in Germany and Pakistan. Our findings show, that while entrepreneurs in Germany and Pakistan show comparable levels of innovativeness and proactiveness, they significantly differ in other EIT measures. German entrepreneurs appear to have higher levels of risk-taking, which when explained through the institutional theory lens can be attributed to the higher institutional stability and support as well as social security in Germany. This potentially makes engagement in risky activities, such as business internationalization, more appealing than in Pakistan. However, despite having lower international cognition and international knowledge compared to Germany, Pakistani entrepreneurs appear to exhibit higher degrees of international behavior.

Entrepreneurship in an Increasingly Digital and Global World. Evaluating the Role of Digital Capabilities on International Entrepreneurial Intention

“…Furthermore, we found empirical evidence for the role of digital capabilities for IEI in general. Thus, we find that digital capabilities are a significant predictor of IEI, which extends findings of previous research that already highlight the role of demographic characteristics as e.g., migration background [22], institutional environments [97], attitudinal elements like international entrepreneurial orientation and a global mindset [44,97], as well as human capital and experiences [40] for IE.…”

The Impact of Environmental Risk Exposure on the Determinants of Sustainable Entrepreneurship

“…Less developed countries are facing a greater likelihood of environmental risk exposure and are at the same time dealing with little coping capacities to remove or protect from environmental damage [3]. This might be related to a lack of institutional stability and support, which has generally been found to enhance the fear of entrepreneurial failure [43].…”

“…Prior literature produced strong evidence that entrepreneurial self-efficacy is an essential determinant of entrepreneurial intention [41,42]. Furthermore, research has shown that cognitive factors related to entrepreneurship highly depend on contextual factors [43,44]. Thus, we assume that the impact of self-efficacy on sustainable entrepreneurial intention might depend on increasing levels of environmental risk exposure.…”

“…Are you, alone or with others, currently trying to start or currently leading any kind of activity that has a social, environmental or community objective? (currently trying to start = 1/no = 0) GEM APS [43] Independent variables (individual level)…”

Entrepreneurship Education and Sustainable Development Goals: A literature Review and a Closer Look at Fragile States and Technology-Enabled Approaches

“…For example, Moon et al [133] point out the importance of building a socially and ecologically aware mindset for learners and teachers alike to maximize the sustainable impact of EET in higher education institutes. Although a large number of studies focus on mindset development as key EET outcome (for example [68,69,134,135]), very few focus on EET's relationship to developing the mindset needed to achieve sustainability through entrepreneurship. Additionally, I follow Schaltegger et al [136] in recommending additional research on the role of collaboration in achieving sustainable development through entrepreneurship, with a specific focus on EET's impact on fostering collaborative mechanisms among and within entrepreneurial ventures and teams to enhance sustainability.…”