The promise of a potential theoretical framework in international entrepreneurship: An entrepreneurial orientation-performance relation in internationalized context

Etemad, Hamid

doi:10.1007/s10843-015-0157-5

Cited by 21 publications

(18 citation statements)

References 16 publications

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“…Entrepreneurial orientation as an antecedent in SME internationalization and service innovation Innovativeness is part of entrepreneurial orientation, and the relationship of the latter with internationalization has also been under literary focus for some time and is particularly relevant for performance implications in IE (see Etemad 2015). SME internationalization has been interpreted specifically as an act of EO, in other words an expansion strategy to enter new markets by seeking growth opportunities (Lumpkin and Dess 1996;Zahra et al 1999;Ripollès-Melià et al 2007).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Service innovation and internationalization in SMEs: antecedents and profitability outcomes

2020

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Both innovating and internationalizing can hold the key to survival and growth among small-and medium-sized enterprises (SMEs). Service innovation in particular is highly relevant in the increasingly digitalized and high-technology global trade. However, there have been until now few studies on service innovation in international entrepreneurship. Thus, in an effort to illuminate its role in entrepreneurial internationalization, the present study examines the profitability impact of service innovation in SME internationalization, while also outlining the differing impacts of entrepreneurial orientation and human capital as the antecedents of both. The empirical data were collected via an online survey of Finnish SMEs in the information and communications technology (ICT) industrial sector, the final sample comprising 104 companies. The data were analyzed through structural equation modeling. The results indicate, first, that entrepreneurial orientation underlies both degree of internationalization and service innovation, yet different dimensions of entrepreneurial orientation have distinct impacts on the two outcomes. Second, we find that the level human capital also determines the level of service innovation in as an antecedent and third, international expansion, but not service innovation, has a negative impact on profitability. We discuss the implications of these results, which imply that SMEs may face an internationalizationinnovation paradox in that engaging in both activities may not be a feasible strategic option for them, and that prioritizing internationalizing in favor of innovating may incur costs and result in lower profitability.

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Section: Hypothesis Developmentmentioning

confidence: 99%

Service innovation and internationalization in SMEs: antecedents and profitability outcomes

2020

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“…These firms do not follow a gradual stage-by-stage pattern of internationalisation but exhibit high global market commitment soon after inception (McAuley 1999;Crick 2009). This is arguably due to domestic institutional forces that focus on continuous learning (see De Noni and Apa 2015;Etemad 2015) and social skills (see Fligstein 1997). To this end, the underlying educational and cultural systems which support and underpin the entrepreneurial mind set (Farny et al 2016;Johannisson 2016) require more attention in the production of essential global resources relating to EO and language ability.…”

Section: Language Education and Entrepreneurshipmentioning

confidence: 99%

“…Particularly, increased exposure to different markets necessitates cultural sensitivity (Etemad 2015) where understanding the benefits of resource tools such as language and education becomes vital (e.g. Holt 2008).…”

Section: Introductionmentioning

confidence: 99%

Language ability and entrepreneurship education: Necessary skills for Europe’s start-ups?

et al. 2018

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Language ability and entrepreneurial education are seen as essential resources for start-ups operating in intensified landscapes of internationalisation and globalisation. Deemed as the necessary skills for corporate effectiveness vis-à-vis rivals, this paper responds to calls for increased understandings of cultural components as vital to entrepreneurship and the product of institutional forces. Thus, it explores (a) the impact language ability has on start-up expansion; (b) the perceptions of international relations as based on language ability as a tool for cross-cultural communication; and (c) the role of educational context from the entrepreneurs' perspective. Based on interviews from European online start-ups across three discrete contexts-Finland, Portugal and Sweden-it concludes that contextual trends regarding language and education are founded upon the cultural-cognitive and normative pillars of institutionalisation. Further, by combining actor-context perspectives, it poses that language ability and education are resources borne from the domestic environment which positively moderate the start-up's international success. Nevertheless, the notion of learnt entrepreneurship remains contested. Taken together, this study contributes by offering deeper insight into the role of context on entrepreneurial tendencies by combining resource and institutional perspectives. J Int Entrep (2018) Second abstract-Spanish La competencia y habilidad lingüística se están convirtiendo en requisitos indispensables para las nuevas empresas que operan en entornos de creciente demanda de internacionalización y globalización. Consideradas como necesarias para asegurar el éxito inicial y ventaja competitiva, este manuscrito se centra en el entendimiento de la conciencia cultural, la capacidad lingüística y la educación como pilares básicos para la iniciativa empresarial. Los objetivos son: a) explorar el impacto de la competencia lingüística en los planes de expansión inicial y futuros; b) investigar la percepción de las relaciones internacionales basadas en la capacidad lingüística como herramienta de comunicación intercultural; y c) definir el rol del entorno en la adquisición de habilidades lingüísticas y comunicativas desde la perspectiva del emprendedor. Basado en entrevistas a nueve nuevas firmas tecnológicas ubicadas en Finlandia, Portugal y Suecia, el estudio muestra diferentes tendencias sobre el rol de las habilidades lingüísticas y culturales como fuente de ventaja competitiva. Sin embargo, la idea de iniciativa empresarial como algo que se puede aprender o enseñar continua bajo debate, destacando la necesidad de futuros estudios sobre la importancia de la educación empresarial como entorno-dependiente. Summary HighlightsContributions: This study contributes to international entrepreneurship literature by increasing understandings of the role of education and language (the measureable components of culture) for start-up (continued) success. It also contributes by integrating institutional and resource-ba...

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“…Consistent with our focus on microfoundations, we also investigate managerial characteristics that may influence individual perceptions of risk and return regarding international location decisions. Key determinants of managerial perceptions in this context are managers' international experience and their overall strategic orientation (Aharoni et al, 2011;Clarke, Tamaschke, & Liesch, 2013;Etemad, 2015). International experience is a key concept in explaining firm internationalization (Clarke et al, 2013).…”

Section: The Role Of Managerial Characteristicsmentioning

confidence: 99%

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

Ambos

Cesinger

Eggers

et al. 2019

Global Strategy Journal

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Research Summary Our understanding of how managers take international location decisions is still scarce. Building on the microfoundations view, we explore managers' perceptions of risk and return in a discrete choice experiment with 2,618 decisions in 2013 (a globalizing world) and 2017 (a de‐globalizing world). While managerial perceptions vary over time due to economic and political changes, such as the current de‐globalization trend, decision heuristics remain remarkably stable: locations perceived as least risky offer the highest expected returns. We also find that distance is a good proxy for managerial perceptions. Investigating the microfoundations of decision‐making we show that international experience, risk‐taking propensity, and shareholder status affect heuristics. In sum, our study provides novel insights into the microfoundations of location decisions and extends the behavioral perspective on internationalization. Managerial Summary While many researchers in the field of international business and global strategy have studied internationalization, surprisingly few of them put the actual decision maker in the spotlight. This study investigates the decision heuristics of managers who are confronted with international location decisions. We show that their perceptions of risk and return in the context of a globalizing world (in 2013) and in the context of a de‐globalizing world (in 2017) vary. However, the underlying heuristic—locations that are perceived as least risky offer the highest expected returns—remains stable. Our study also indicates that distance is a good proxy for managerial decisions and that managers' international experience, risk‐taking propensity, and shareholder status affect their decision‐making patterns.

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The promise of a potential theoretical framework in international entrepreneurship: An entrepreneurial orientation-performance relation in internationalized context

Cited by 21 publications

References 16 publications

Service innovation and internationalization in SMEs: antecedents and profitability outcomes

Service innovation and internationalization in SMEs: antecedents and profitability outcomes

Language ability and entrepreneurship education: Necessary skills for Europe’s start-ups?

How does de‐globalization affect location decisions? A study of managerial perceptions of risk and return

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