IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v9y2019i3p54-d252909.html
   My bibliography  Save this article

Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan

Author

Listed:
  • Laura H. Middermann

    (Department for Entrepreneurship and Innovation Management, Technische Universität Berlin, Straße des 17. Juni 135, H76, 10623 Berlin, Germany)

  • Lubna Rashid

    (Department for Entrepreneurship and Innovation Management, Technische Universität Berlin, Straße des 17. Juni 135, H76, 10623 Berlin, Germany)

Abstract

Previous research has emphasized the importance of entrepreneurial characteristics for international entrepreneurship, hence the application of concepts such as entrepreneurial orientation and global mindset to the study of entrepreneurial internationalization tendencies (EIT). However, literature does not adequately address how EIT differ between countries or manifest in fragile country settings. We address this gap through a quantitative study to investigate EIT in two national settings that largely differ in terms of development, institutional stability, and culture. Through the lens of the institutional theory and the mindset theory, we therefore piloted the study on 112 high-growth startups in Germany and Pakistan. Our findings show, that while entrepreneurs in Germany and Pakistan show comparable levels of innovativeness and proactiveness, they significantly differ in other EIT measures. German entrepreneurs appear to have higher levels of risk-taking, which when explained through the institutional theory lens can be attributed to the higher institutional stability and support as well as social security in Germany. This potentially makes engagement in risky activities, such as business internationalization, more appealing than in Pakistan. However, despite having lower international cognition and international knowledge compared to Germany, Pakistani entrepreneurs appear to exhibit higher degrees of international behavior.

Suggested Citation

  • Laura H. Middermann & Lubna Rashid, 2019. "Cross-Country Differences in Entrepreneurial Internationalization Tendencies: Evidence from Germany and Pakistan," Administrative Sciences, MDPI, vol. 9(3), pages 1-17, July.
    • Handle: RePEc:gam:jadmsc:v:9:y:2019:i:3:p:54-:d:252909
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/9/3/54/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/9/3/54/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mohammed Nishat & Talha Nadeem, 2016. "Factors Explaining the Risk Attitude towards Entrepreneurship in Pakistan: An Exploratory Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 55(4), pages 715-723.
    2. Carr, Jon C. & Sequeira, Jennifer M., 2007. "Prior family business exposure as intergenerational influence and entrepreneurial intent: A Theory of Planned Behavior approach," Journal of Business Research, Elsevier, vol. 60(10), pages 1090-1098, October.
    3. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2018. "Entrepreneurship, economic development, and institutional environment: evidence from OECD countries," Journal of International Entrepreneurship, Springer, vol. 16(4), pages 504-546, December.
    4. Ronald K. Mitchell & J. Brock Smith & Eric A. Morse & Kristie W. Seawright & Ana Maria Peredo & Brian McKenzie, 2002. "Are Entrepreneurial Cognitions Universal? Assessing Entrepreneurial Cognitions across Cultures," Entrepreneurship Theory and Practice, , vol. 26(4), pages 9-32, July.
    5. Javalgi, Rajshekhar (Raj) G. & Todd, Patricia R., 2011. "Entrepreneurial orientation, management commitment, and human capital: The internationalization of SMEs in India," Journal of Business Research, Elsevier, vol. 64(9), pages 1004-1010, September.
    6. Jeffrey G. Covin & William J. Wales, 2012. "The Measurement of Entrepreneurial Orientation," Entrepreneurship Theory and Practice, , vol. 36(4), pages 677-702, July.
    7. Oparaocha, Gospel Onyema, 2015. "SMEs and international entrepreneurship: An institutional network perspective," International Business Review, Elsevier, vol. 24(5), pages 861-873.
    8. Schneider, Claudia R. & Fehrenbacher, Dennis D. & Weber, Elke U., 2017. "Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’," International Business Review, Elsevier, vol. 26(6), pages 1023-1033.
    9. José Carlos Pinho, 2017. "Institutional theory and global entrepreneurship: exploring differences between factor- versus innovation-driven countries," Journal of International Entrepreneurship, Springer, vol. 15(1), pages 56-84, March.
    10. Boso, Nathaniel & Story, Vicky M. & Cadogan, John W., 2013. "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, Elsevier, vol. 28(6), pages 708-727.
    11. Garry D. Bruton & David Ahlstrom & Han–Lin Li, 2010. "Institutional Theory and Entrepreneurship: Where Are We Now and Where Do We Need to Move in the Future?," Entrepreneurship Theory and Practice, , vol. 34(3), pages 421-440, May.
    12. Child, John & Hsieh, Linda & Elbanna, Said & Karmowska, Joanna & Marinova, Svetla & Puthusserry, Pushyarag & Tsai, Terence & Narooz, Rose & Zhang, Yunlu, 2017. "SME international business models: The role of context and experience," Journal of World Business, Elsevier, vol. 52(5), pages 664-679.
    13. S Tamer Cavusgil & Gary Knight, 2015. "The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(1), pages 3-16, January.
    14. Lumpkin, G. T. & Dess, Gregory G., 2001. "Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle," Journal of Business Venturing, Elsevier, vol. 16(5), pages 429-451, September.
    15. Dennis D. Fehrenbacher & Claudia R Schneider & Elke U. Weber, 2017. "Catch me if I fall: Cross-national differences in willingness to take financial risks as a function of social and state ‘cushioning’," LWS Working papers 16, LIS Cross-National Data Center in Luxembourg.
    16. Dominic S.K. Lim & Eric A. Morse & Ronald K. Mitchell & Kristie K. Seawright, 2010. "Institutional Environment and Entrepreneurial Cognitions: A Comparative Business Systems Perspective," Entrepreneurship Theory and Practice, , vol. 34(3), pages 491-516, May.
    17. Lutz Sommer, 2010. "Internationalization processes of small- and medium-sized enterprises—a matter of attitude?," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 288-317, September.
    18. 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.
    19. Felício, J. Augusto & Meidutė, Ieva & Kyvik, Øyvin, 2016. "Global mindset, cultural context, and the internationalization of SMEs," Journal of Business Research, Elsevier, vol. 69(11), pages 4924-4932.
    20. Oyvin Kyvik & Willem Saris & Eduard Bonet & J. Felício, 2013. "The internationalization of small firms: The relationship between the global mindset and firms’ internationalization behavior," Journal of International Entrepreneurship, Springer, vol. 11(2), pages 172-195, June.
    21. Sanna Joensuu-Salo & Kirsti Sorama & Anmari Viljamaa & Elina Varamäki, 2018. "Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization," Administrative Sciences, MDPI, vol. 8(3), pages 1-13, July.
    22. Nabeel Muhammad & Gerard Mcelwee & Léo-Paul Dana, 2017. "Barriers to the development and progress of entrepreneurship in rural Pakistan," Post-Print hal-02008559, HAL.
    23. Lim, Dominic S.K. & Oh, Chang Hoon & De Clercq, Dirk, 2016. "Engagement in entrepreneurship in emerging economies: Interactive effects of individual-level factors and institutional conditions," International Business Review, Elsevier, vol. 25(4), pages 933-945.
    24. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    25. Ute Stephan & Lorraine M Uhlaner, 2010. "Performance-based vs socially supportive culture: A cross-national study of descriptive norms and entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1347-1364, October.
    26. Jeffrey G. Covin & Danny Miller, 2014. "International Entrepreneurial Orientation: Conceptual Considerations, Research Themes, Measurement Issues, and Future Research Directions," Entrepreneurship Theory and Practice, , vol. 38(1), pages 11-44, January.
    27. James C. Hayton & Gerard George & Shaker A. Zahra, 2002. "National Culture and Entrepreneurship : A Review of Behavioral Research," Entrepreneurship Theory and Practice, , vol. 26(4), pages 33-52, July.
    28. Patrick M. Kreiser & Louis D. Marino & Pat Dickson & K. Mark Weaver, 2010. "Cultural Influences on Entrepreneurial Orientation: The Impact of National Culture on Risk Taking and Proactiveness in SMEs," Entrepreneurship Theory and Practice, , vol. 34(5), pages 959-984, September.
    29. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    30. Kayhan Tajeddini & Stephen Mueller, 2009. "Entrepreneurial characteristics in Switzerland and the UK: A comparative study of techno-entrepreneurs," Journal of International Entrepreneurship, Springer, vol. 7(1), pages 1-25, March.
    31. De Clercq, Dirk & Danis, Wade M. & Dakhli, Mourad, 2010. "The moderating effect of institutional context on the relationship between associational activity and new business activity in emerging economies," International Business Review, Elsevier, vol. 19(1), pages 85-101, February.
    32. Wayne H. Stewart Jr. & Ruth C. May & Arvind Kalia, 2008. "Environmental Perceptions and Scanning in the United States and India: Convergence in Entrepreneurial Information Seeking?," Entrepreneurship Theory and Practice, , vol. 32(1), pages 83-106, January.
    33. Danny Miller, 1983. "The Correlates of Entrepreneurship in Three Types of Firms," Management Science, INFORMS, vol. 29(7), pages 770-791, July.
    34. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    35. Acedo, Francisco J. & Jones, Marian V., 2007. "Speed of internationalization and entrepreneurial cognition: Insights and a comparison between international new ventures, exporters and domestic firms," Journal of World Business, Elsevier, vol. 42(3), pages 236-252, September.
    36. Thomas Baron & Aki Harima, 2019. "The role of diaspora entrepreneurs in start-up ecosystem development - a Berlin case study," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 36(1/2), pages 74-102.
    37. Martina Musteen & Ross Curran & Nuno Arroteia & Maria Ripollés & Andreu Blesa, 2018. "A Community of Practice Approach to Teaching International Entrepreneurship," Administrative Sciences, MDPI, vol. 8(4), pages 1-17, September.
    38. Gaffney, Nolan & Cooper, Danielle & Kedia, Ben & Clampit, Jack, 2014. "Institutional transitions, global mindset, and EMNE internationalization," European Management Journal, Elsevier, vol. 32(3), pages 383-391.
    39. Irina Ervits & Malgorzata Zmuda, 2018. "A cross-country comparison of the effects of institutions on internationally oriented innovation," Journal of International Entrepreneurship, Springer, vol. 16(4), pages 486-503, December.
    40. Stucki, Tobias, 2016. "How the founders’ general and specific human capital drives export activities of start-ups," Research Policy, Elsevier, vol. 45(5), pages 1014-1030.
    41. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2018. "Entrepreneurship, economic development, and institutional environment: evidence from OECD countries," Post-Print hal-01785366, HAL.
    42. Kiss, Andreea N. & Danis, Wade M. & Cavusgil, S. Tamer, 2012. "International entrepreneurship research in emerging economies: A critical review and research agenda," Journal of Business Venturing, Elsevier, vol. 27(2), pages 266-290.
    43. Oyvin Kyvik, 2018. "The global mindset: a must for international innovation and entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 14(2), pages 309-327, June.
    44. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    45. Rafik Abdesselam & Jean Bonnet & Patricia Renou-Maissant & Mathilde Aubry, 2018. "Entrepreneurship, economic development, and institutional environment: evidence from OECD countries," Journal of International Entrepreneurship, Springer, vol. 16(4), pages 504-546, December.
    46. Benjamin M Oviatt & Patricia P McDougall, 2005. "The internationalization of entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 2-8, January.
    47. Kuivalainen, Olli & Sundqvist, Sanna & Servais, Per, 2007. "Firms' degree of born-globalness, international entrepreneurial orientation and export performance," Journal of World Business, Elsevier, vol. 42(3), pages 253-267, September.
    48. Augusto Felício, J. & Caldeirinha, Vítor R. & Ribeiro-Navarrete, Belen, 2015. "Corporate and individual global mind-set and internationalization of European SMEs," Journal of Business Research, Elsevier, vol. 68(4), pages 797-802.
    49. Catherine L. Wang, 2008. "Entrepreneurial Orientation, Learning Orientation, and Firm Performance," Entrepreneurship Theory and Practice, , vol. 32(4), pages 635-657, July.
    50. Brian S. Anderson & Patrick M. Kreiser & Donald F. Kuratko & Jeffrey S. Hornsby & Yoshihiro Eshima, 2015. "Reconceptualizing entrepreneurial orientation," Strategic Management Journal, Wiley Blackwell, vol. 36(10), pages 1579-1596, October.
    51. Colin C. Williams & Muhammad S. Shahid, 2016. "Informal entrepreneurship and institutional theory: explaining the varying degrees of (in)formalization of entrepreneurs in Pakistan," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(1-2), pages 1-25, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Rashid, Lubna & Alzafari, Khaled & Kratzer, Jan, 2020. "Founder Personalities, Behaviors and New Venture Success in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    2. Karina Cagarman & Jan Kratzer & Laura Helen von Arnim & Kristina Fajga & Michaela Jacqueline Gieseke, 2020. "Social Entrepreneurship on Its Way to Significance: The Case of Germany," Sustainability, MDPI, vol. 12(21), pages 1-13, October.
    3. Lubna Rashid, 2019. "Entrepreneurship Education and Sustainable Development Goals: A literature Review and a Closer Look at Fragile States and Technology-Enabled Approaches," Sustainability, MDPI, vol. 11(19), pages 1-23, September.
    4. Laura Helen Middermann, 2020. "Do Immigrant Entrepreneurs Have Natural Cognitive Advantages for International Entrepreneurial Activity?," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    5. Korapin Jirapong & Karina Cagarman & Laura von Arnim, 2021. "Road to Sustainability: University–Start-Up Collaboration," Sustainability, MDPI, vol. 13(11), pages 1-19, May.
    6. Laura von Arnim & Matthias Mrozewski, 2020. "Entrepreneurship in an Increasingly Digital and Global World. Evaluating the Role of Digital Capabilities on International Entrepreneurial Intention," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    7. Laura H. Middermann & Jan Kratzer & Susanne Perner, 2020. "The Impact of Environmental Risk Exposure on the Determinants of Sustainable Entrepreneurship," Sustainability, MDPI, vol. 12(4), pages 1-15, February.
    8. Roberta Dutra de Andrade & Paulo Gonçalves Pinheiro & Matheus Dantas Madeira Pontes & Thayanne Lima Duarte Pontes, 2023. "Unleashing Knowledge Sharing in Emerging Economy Startups: A Multilevel Analysis," Sustainability, MDPI, vol. 15(13), pages 1-17, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farhad Uddin Ahmed & Louis Brennan, 2019. "Performance determinants of early internationalizing firms: The role of international entrepreneurial orientation," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 389-424, September.
    2. D’Angelo, Alfredo & Presutti, Manuela, 2019. "SMEs international growth: The moderating role of experience on entrepreneurial and learning orientations," International Business Review, Elsevier, vol. 28(3), pages 613-624.
    3. Knight, Gary & Moen, Øystein & Madsen, Tage Koed, 2020. "Antecedents to differentiation strategy in the exporting SME," International Business Review, Elsevier, vol. 29(6).
    4. Farhad Uddin Ahmed & Louis Brennan, 2021. "A review of methodological diversity within the domain of international entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 256-299, June.
    5. Patrick Kreiser & Louis Marino & Donald Kuratko & K. Weaver, 2013. "Disaggregating entrepreneurial orientation: the non-linear impact of innovativeness, proactiveness and risk-taking on SME performance," Small Business Economics, Springer, vol. 40(2), pages 273-291, February.
    6. Basco, Rodrigo & Hernández-Perlines, Felipe & Rodríguez-García, María, 2020. "The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain," Journal of Business Research, Elsevier, vol. 113(C), pages 409-421.
    7. Laura von Arnim & Matthias Mrozewski, 2020. "Entrepreneurship in an Increasingly Digital and Global World. Evaluating the Role of Digital Capabilities on International Entrepreneurial Intention," Sustainability, MDPI, vol. 12(19), pages 1-18, September.
    8. Anna Watson & Olufunmilola (Lola) Dada & Owen Wright & Rozenn Perrigot, 2019. "Entrepreneurial Orientation Rhetoric in Franchise Organizations: The Impact of National Culture," Entrepreneurship Theory and Practice, , vol. 43(4), pages 751-772, July.
    9. Jeewhan Yoon & George T Solomon, 2017. "A curvilinear relationship between entrepreneurial orientation and firm performance: The moderating role of employees’ psychological safety," International Entrepreneurship and Management Journal, Springer, vol. 13(4), pages 1139-1156, December.
    10. Lin Wang & Murad Ali & Hyun Jeong Kim & Sareum Lee & Felipe Hernández Perlines, 2021. "Individual entrepreneurial orientation, value congruence, and individual outcomes: Does the institutional entrepreneurial environment matter?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(5), pages 2293-2312, July.
    11. Krzysztof Wach, 2015. "Entrepreneurial Orientation and Business Internationalisation Process: The Theoretical Foundations of International Entrepreneurship," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 9-24.
    12. Wales, William J. & Kraus, Sascha & Filser, Matthias & Stöckmann, Christoph & Covin, Jeffrey G., 2021. "The status quo of research on entrepreneurial orientation: Conversational landmarks and theoretical scaffolding," Journal of Business Research, Elsevier, vol. 128(C), pages 564-577.
    13. Vahid Jafari-Sadeghi & Jean-Marie Nkongolo-Bakenda & Léo-Paul Dana & Robert B. Anderson & Paolo Pietro Biancone, 2020. "Home Country Institutional Context and Entrepreneurial Internationalization: The Significance of Human Capital Attributes," Journal of International Entrepreneurship, Springer, vol. 18(2), pages 165-195, June.
    14. Ipsmiller, Edith & Dikova, Desislava & Brouthers, Keith D., 2022. "Digital Internationalization of Traditional Firms: Virtual Presence and Entrepreneurial Orientation," Journal of International Management, Elsevier, vol. 28(4).
    15. Hernández-Perlines, Felipe & Covin, Jeffrey G. & Ribeiro-Soriano, Domingo E., 2021. "Entrepreneurial orientation, concern for socioemotional wealth preservation, and family firm performance," Journal of Business Research, Elsevier, vol. 126(C), pages 197-208.
    16. Francisco Javier Forcadell & Fernando Úbeda, 2022. "Individual entrepreneurial orientation and performance: the mediating role of international entrepreneurship," International Entrepreneurship and Management Journal, Springer, vol. 18(2), pages 875-900, June.
    17. Laura Helen Middermann, 2020. "Do Immigrant Entrepreneurs Have Natural Cognitive Advantages for International Entrepreneurial Activity?," Sustainability, MDPI, vol. 12(7), pages 1-13, April.
    18. Bekir Emre KurtulmuÅŸ & Alev Katrinli & Bernadette Warner, 2020. "International Entrepreneurial Orientation and Performance of SMEs: The Mediating Role of Informal Institutional Framework," SAGE Open, , vol. 10(4), pages 21582440209, December.
    19. Chabaud, Didier & Sattin, Jean-François, 2019. "Back to the roots! Testing Miller's entrepreneurial orientation construct using Sono-Leontief conditions," Journal of Business Venturing Insights, Elsevier, vol. 11(C), pages 1-1.
    20. Ciravegna, Luciano & Kuivalainen, Olli & Kundu, Sumit K. & Lopez, Luis E., 2018. "The antecedents of early internationalization: A configurational perspective," International Business Review, Elsevier, vol. 27(6), pages 1200-1212.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:9:y:2019:i:3:p:54-:d:252909. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.