Internationalization and innovation in nascent companies: does gender matter?

Abstract

Purpose The purpose of this paper is to explore the competitiveness of women entrepreneurs in terms of internationalization and innovation. Supported by a resource-based framework of early internationalizing firms, the authors investigated multiple conditions for the relationship between internationalization and innovation relative to gender in nascent companies. Design/methodology/approach For this purpose, the authors used survey data related to entrepreneurial activity in 50 countries from the Global Entrepreneurship Monitor. Based on a model of seven factors (internationalization, innovation, gender, skills, opportunity, sector, and country), the authors tested the significance of the relationships between these factors by means of a hierarchical log-linear analysis. Findings The results indicate the low competitiveness of women entrepreneurs in general, but outline some singularities, especially between developed and developing countries. Originality/value This study offers cross-country empirical evidence of how factors of different levels interact with each other. In this way, the authors shed light on the competitiveness of nascent companies, especially regarding gender differences.

Women Entrepreneurship in International Trade: Bridging the Gap by Bringing Feminist Theories into Entrepreneurship and Internationalization Theories

“…For example, women-owned firms involved in the global marketplace have greater revenues, are more optimistic about their business prospects, and are more focused on business expansion compare to women-owned firms doing business domestically [6,44]. However, women entrepreneurs' journey in international trade is not the same as for their counterparts [2,10,45]. Muñoz-Bullón, Sánchez-Bueno, and Vos-Saz [46] found that entrepreneurial personality traits, such as proactiveness, risk-taking, and innovativeness, have a significant influence on the entrepreneur's entry into foreign markets.…”

“…Moreover, Wallace [37] argued that the strategic framework established by previous researchers has failed to tackle gender inequalities due to the dominant use of 'rational economic man (REM)' discourse in policy and mainstream business arena. Assessing women entrepreneurs' performances by using a gender-blind approach portrays a picture that women are less competitive in international business development and growth, as found in Alves et al [2]. Such findings would create fears for women entrepreneurs and discourage them from the advancement in business rather than help them to build confidence.…”

“…Research attention devoted to women entrepreneurs has been increased in recent years as female entrepreneurship is considered as a potential source of economic and social development [1][2][3][4]. According to the international labor organization [5], more than 42% of all operating companies in the formal economy worldwide are led by women entrepreneurs.…”

“…Initially, the focus was on realizing that women face inequality in the business environment; then, the focus shifted to identifying and understanding the barriers faced by women in business, and finally, the topics of gender differences and diversity in teams were explored. More recently, attention is on the stakeholder effect of women-owned businesses compared to that of men [2].…”

“…Farashah [25] argued that though most researchers use gender as a socially constructed factor, its implications are not fully explored, as it is important to explore social and ethical considerations that motivate women entrepreneurs. Moreover, understanding women's strengths and weaknesses is important in generating greater value for society in the long run [2]. Besides, the implication of gender issues in the context of internationalization of women-owned small firms needs further attention [20].…”