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The relationship between entrepreneurship and international performance: the importance of domestic environment

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  • Dimitratos, Pavlos
  • Lioukas, Spyros
  • Carter, Sara
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    Abstract

    This article investigates the effect of environmental conditions on the association between entrepreneurship and international performance. Drawing upon a sample of 152 internationalized Greek firms, it presents evidence related to mainly contingency and configurational effects of international and domestic environments. The key conclusion from the evidence is that uncertainty of domestic country plays significant role, positively moderating the entrepreneurship-international performance relationship. To the best of our knowledge, this is the first study in the emerging international entrepreneurship literature pinpointing the significance of uncertainty in domestic country for superior organizational performance abroad. This finding stresses the importance of the environmental determinism view suggesting that the alignment of entrepreneurship with domestic environmental conditions enhances international performance. It also suggests that domestic country risk reduction policies may not be implemented since these can lower performance abroad for entrepreneurial activities.

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    Bibliographic Info

    Article provided by Elsevier in its journal International Business Review.

    Volume (Year): 13 (2004)
    Issue (Month): 1 (February)
    Pages: 19-41

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    Handle: RePEc:eee:iburev:v:13:y:2004:i:1:p:19-41

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    Related research

    Keywords: Entrepreneurship International performance Moderating effects Uncertainty of domestic country;

    References

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    1. Zahra, Shaker A., 1993. "Environment, corporate entrepreneurship, and financial performance: A taxonomic approach," Journal of Business Venturing, Elsevier, vol. 8(4), pages 319-340, July.
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    Citations

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    Cited by:
    1. Tõnu Roolaht, 2006. "Entrepreneurial approach to explaining the internationalization of Estonian small and mediumenterprises," University of Tartu - Faculty of Economics and Business Administration, in: Entrepreneurship in Estonia: policies, practices, education and research, volume 28, chapter 5, pages 92-115 Faculty of Economics and Business Administration, University of Tartu (Estonia).
    2. Soininen, Juha & Martikainen, Minna & Puumalainen, Kaisu & Kyläheiko, Kalevi, 2012. "Entrepreneurial orientation: Growth and profitability of Finnish small- and medium-sized enterprises," International Journal of Production Economics, Elsevier, vol. 140(2), pages 614-621.
    3. Jantunen, Ari & Nummela, Niina & Puumalainen, Kaisu & Saarenketo, Sami, 2008. "Strategic orientations of born globals--Do they really matter?," Journal of World Business, Elsevier, vol. 43(2), pages 158-170, March.
    4. Szyliowicz, Dara & Galvin, Tiffany, 2010. "Applying broader strokes: Extending institutional perspectives and agendas for international entrepreneurship research," International Business Review, Elsevier, vol. 19(4), pages 317-332, August.
    5. Manuel Portugal Ferreira & Fernando A. Ribeiro Serra & Benny Kramer Costa, 2011. "The RBV in International Business Studies: A bibliometric study of Barney?s (1991) contribution to the field," Working Papers 82, globADVANTAGE, Polytechnic Institute of Leiria.
    6. Man Zhang & Patriya Tansuhaj & James McCullough, 2009. "International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China," Journal of International Entrepreneurship, Springer, vol. 7(4), pages 292-322, December.
    7. Manolopoulos, Dimitris & Söderquist, Klas Eric & Pearce, Robert, 2011. "Coordinating decentralized research and development laboratories: A survey analysis," Journal of International Management, Elsevier, vol. 17(2), pages 114-129, June.
    8. Kraiczy, Nils D. & Hack, Andreas & Kellermanns, Franz W., 2014. "New product portfolio performance in family firms," Journal of Business Research, Elsevier, vol. 67(6), pages 1065-1073.
    9. Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
    10. Zhou, Lianxi, 2007. "The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization," Journal of World Business, Elsevier, vol. 42(3), pages 281-293, September.
    11. Ari Jantunen & Kaisu Puumalainen & Sami Saarenketo & Kalevi Kyläheiko, 2005. "Entrepreneurial Orientation, Dynamic Capabilities and International Performance," Journal of International Entrepreneurship, Springer, vol. 3(3), pages 223-243, September.
    12. Vincenza Odorici & Manuela Presutti, 2013. "The entrepreneurial experience and strategic orientation of high-tech born global start-ups: An analysis of novice and habitual entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 268-291, September.
    13. Stoian, Maria-Cristina & Rialp, Alex & Rialp, Josep, 2011. "Export performance under the microscope: A glance through Spanish lenses," International Business Review, Elsevier, vol. 20(2), pages 117-135, April.
    14. Jones, Marian V. & Coviello, Nicole & Tang, Yee Kwan, 2011. "International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis," Journal of Business Venturing, Elsevier, vol. 26(6), pages 632-659.

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