2018
DOI: 10.1177/0266242618783309
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Depth versus breadth: Exploring variation and performance differences among internationalising new ventures

Abstract: Despite the wealth of studies on international entrepreneurship that have emerged over recent years, a need exists to further explore variation among internationalising new ventures. In this article, we develop and test a framework suggesting that a new venture’s depth and breadth of internationalisation can be traded off in multiple ways to minimise risk. Through a cluster analysis, we identify four configurations commonly exhibited by internationalising new ventures, which we classify as follows: (1) home re… Show more

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Cited by 23 publications
(38 citation statements)
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References 87 publications
(170 reference statements)
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“…Taken together, these findings extend research on IOR (Ellis, 2011; Mainela et al, 2018; Muzychenko and Liesch, 2015; Reuber et al, 2018). First, whereas much research in IE has focused on exogenous country, firm and industry characteristics to explain differences in FMEs and firm internationalisation trajectories (Cerrato and Fernhaber, 2018), our study extends such work by suggesting that differences in how individuals interpret these characteristics and act upon them are an important but often a theoretically overlooked aspect in IE. We suggest that a focus on the individuals engaged in IOR, and in particular a shift in attention from a trait-based approach towards mental model attributes and/or the reasoning processes employed at different stages in the opportunity recognition process, can provide new insights into FMEs, and in particular initial serendipitous FMEs.…”
Section: Discussionsupporting
confidence: 55%
See 1 more Smart Citation
“…Taken together, these findings extend research on IOR (Ellis, 2011; Mainela et al, 2018; Muzychenko and Liesch, 2015; Reuber et al, 2018). First, whereas much research in IE has focused on exogenous country, firm and industry characteristics to explain differences in FMEs and firm internationalisation trajectories (Cerrato and Fernhaber, 2018), our study extends such work by suggesting that differences in how individuals interpret these characteristics and act upon them are an important but often a theoretically overlooked aspect in IE. We suggest that a focus on the individuals engaged in IOR, and in particular a shift in attention from a trait-based approach towards mental model attributes and/or the reasoning processes employed at different stages in the opportunity recognition process, can provide new insights into FMEs, and in particular initial serendipitous FMEs.…”
Section: Discussionsupporting
confidence: 55%
“…Fourth, recent research suggests that the breadth and depth of firm internationalisation trajectories can be traded off to minimise risks and have implications for firm performance (Cerrato and Fernhaber, 2018). The trajectories observed in Figure 1 suggest that Indian decision-makers are more adept at pursuing geographically distant opportunities, focusing on internationalisation breadth, while European decision-makers are regionally committed, and suggest the need for additional work and methods (e.g.…”
Section: Contextual Boundaries Limitations and Future Researchmentioning
confidence: 99%
“…We also controlled for the age of the firms, given that it may influence the firms' internationalization strategy, since it represents the firms' business experience, resources and capabilities (Cerrato et al 2016;Cerrato and Fernhaber 2018). The firms' age may also influence their international performance (Lu et al 2010).…”
Section: Research Sampling and Proceduresmentioning
confidence: 99%
“…In the context of SMEs, the international strategy is an important strategy that deserves more investigation (Lobo et al 2020). We took the SMEs' international strategy as a multidimensional construct combining the firms' international strategic decisions concerning the scale and scope of internationalization (e.g., Cerrato and Fernhaber 2018). Then, we classified three different strategic groups based on the SMEs international exposure, linking these two determinant dimensions within the domain of the firms' internationalization, i.e., concerning their strategic positioning (cf.…”
Section: Introductionmentioning
confidence: 99%
“…In this sense, our conceptual line considers the study of the influence of the present top managers' intelligences on the present realized international strategy. The firms' international strategy is taken as a multidimensional construct concerning the firms' international scale and scope e.g., [37]. Accordingly, different strategic groups emerge with the respective degree of internationalization (DoI) combining the scale and scope of internationalization.…”
Section: Introductionmentioning
confidence: 99%