Disentangling the effects of post-entry speed of internationalisation on export performance of INVs

Abstract

This paper aims to explore the under-researched topic of post-entry speed of internationalization (PSI) in the context of international new ventures (INVs). We unbundle PSI and examine its relationship with both financial and non-financial export performance, considering three related, but conceptually distinct, dimensions of PSI: internationalization intensity, spread, and geographical diversity. Building on organizational learning theory, we highlight different mechanisms that contribute to post-entry performance outcomes among INVs. Our findings from a sample of 112 INVs in New Zealand provide evidence that the three dimensions of PSI are distinct and that they have different impacts on financial and nonfinancial export performance. This paper contributes to the limited, yet growing body of literature on PSI by providing a deeper understanding of PSI and its constituent dimensions. In addition, this study offers new theoretical insights into how and why different dimensions of post-entry speed of internationalization can contribute to stronger export performance.

Collaboration and Internationalization of SMEs: Insights and Recommendations from a Systematic Review

“…In particular, post‐entry internationalization speed has emerged as a new phenomenon (Sadeghi et al . 2018) that needs further empirical attention. Second, international diversification can be defined as the number of markets into which a small firm has entered (Zhang et al .…”

A multidimensional perspective of SME internationalization speed: The influence of entrepreneurial characteristics

“…However, the antecedents of the other two dimensions (speed of international depth and breadth) are less known and require additional empirical investigation. Moreover, apart from four empirical studies by Chetty et al (2014), Hilmersson and Johanson (2016), Sadeghi et al (2018), Hilmersson et al (2017), a multidimensional perspective of small and medium-sized enterprise (SME) internationalization speed remains relatively underexplored. The first three of these studies were restricted to the examination of the relationships between speed and performance, while the fourth only studied the antecedents of speed of internationalization breadth.…”

Permanência no Exterior e Renovação Estratégica de uma Born Global Digital de Mercado Emergente: um Estudo de Caso

“…Regarding the performance of born globals, Sadeghi et al (2018) affirm that the rapid international expansion offers some important financial and non-financial growth opportunities. However, to take advantage of such opportunities it is necessary to learn with the experiences, to develop new capabilities and to adapt them to new markets.…”

“…The presence of born globals is still a relatively rare phenomenon in the international market and their number has not increased significantly yet (Braunerhjelm & Halldin, 2019). Empirical studies have shown that to survive in foreign markets, born globals seek to keep their path throughout their insertion and positioning themselves in business networks (Ngasri & Freeman, 2018), developing new capabilities and adapting themselves to new markets (Sadeghi et al, 2018). For born globals from emerging economies, the international path reflects other kinds of challenges and strategies.…”

“…For technology-based born globals, the strategic renewal is fundamental to overlap the liability of timing, as these firms must always be innovating and reinventing themselves in the shortest time. The important result from our case is that the permanence of Decora abroad encompasses to improve its performance, that depends on its capability to learn from the previous experiences, to develop new capabilities and to adapt them to new markets (Sadeghi et al, 2018), increase its time abroad, expand the number of markets served and overcome its expansion time. We regard these variables as the main components of a multidimensional construct, which means a long-term sustainability in the foreign market.…”