The strategic orientations of rapidly internationalizing software companies

Abstract

Purpose -This paper addresses the strategic orientations (entrepreneurial orientation, learning orientation, and market orientation) of rapidly internationalizing small software companies. Design/methodology/approach -The empirical analysis is based on an intensive investigation of ten small Finnish software companies that have exhibited rapid and proactive internationalization behavior. Findings -It is argued that the manifestations of the orientations evolve as the small company develops, and these concepts are thus strongly related to the internationalization process. Further, an entrepreneurial orientation, especially a strong desire to seek growth in international markets, must be embedded in the mindset of the rapidly internationalizing small company. However, It is argued that it does not have an effect on the success of the international venture if it is not combined with strong learning and market orientations. Research limitations/implications -This paper brings an evolutionary viewpoint to the existing academic debate of strategic orientations of companies. It is suggested that the current conceptualization of entrepreneurial orientation should be developed to include also measures of market orientation. Practical implications -It is suggested that the members of the management team of a small and global software company should not only possess a highly entrepreneurial mindset and previous experience of international operations, they should also show strong commitment to considering the customers the most important stakeholders of the company, and a willingness and ability to learn rapidly from all available information about global markets. Originality/value -This is the first qualitative investigation of the strategic orientations during the internationalization process of small companies.

Strategic orientations and performance: A configurational perspective

“…This particularly entails capabilities enabling vigilant market learning (through MO), an explorative learning approach (through LO), as well as experimental marketplace adaptation (through EO) (Day, 2011;Gnizy et al, 2014). Having such capabilities is particularly pertinent for high-technology firms coping with technological complexities in dynamic markets (Ruokonen & Saarenketo, 2009). For such firms it is imperative to simultaneously generate market information, execute rapid learning processes, and adapt to customer needs in order to grow (Ruokonen & Saarenketo, 2009).…”

“…Having such capabilities is particularly pertinent for high-technology firms coping with technological complexities in dynamic markets (Ruokonen & Saarenketo, 2009). For such firms it is imperative to simultaneously generate market information, execute rapid learning processes, and adapt to customer needs in order to grow (Ruokonen & Saarenketo, 2009). …”

“…Research analyzing more than one strategic orientation is comparatively limited (Hakala, 2011). The present study focuses on EO, MO, and LO as their complementary potential enables firms to achieve sustainable competitive advantages Ruokonen & Saarenketo, 2009). MO integrates the adaptive processes related to the competitive environment, whereas EO and LO entail processes of matching firms' resources with the external environment.…”

Strategic Orientations and SME Performance: Moderating Effect of Absorptive Capacity of the Firm

“…Studies by Liu, Luo, and Shi (2002) and Liu, Luo, and Shi (2003) found positive effect of entrepreneurial orientation, market orientation and learning orientation on corporate entrepreneurship, while Barrett, Balloun, andWeinstein (2005a, 2005b) found that entrepreneurial orientation, market orientation and learning orientation correlates with performance of non-profit organizations. Hult, Hurley, and Knight (2004) and Zehir and Eren (2007) further found that entrepreneurial orientation, market orientation and learning orientation are all positively related to performance of large-scale organizations while Ruokonen and Saarenketo (2009) and Kropp et al (2008) have tested the effects of the three orientations on new venture performance and internationalization. Meanwhile Rhee et al (2010)'s study found simultaneous effect of entrepreneurial orientation, market orientation, learning orientation on innovation performance, Li (2005) concurred that entrepreneurial orientation, market orientation and technology orientation have positive effect on networking and performance, and Salavou (2005) found that learning orientation, market orientation and technology orientation have a combined effect on new product performance.…”

Resolving the conundrum of superior performers in organizations with the utilization of competency profiling

“…Although years of experience are required for culinary professionals, Baum [9] stipulated that experiential intelligence is one of the capabilities that are hardly possessed by individuals. Similarly, Ruokonen & Saarenketo [36] asserted that the way workers capitalize the information gathered through their years of working will be determined by their experiential intelligence. Thus, the ability in manipulating experiences robustly for professional development is the key for successful career.…”