IDEAS home Printed from https://ideas.repec.org/a/kap/jinten/v11y2013i2p158-171.html
   My bibliography  Save this article

The internationalization of entrepreneurial firms from emerging economies: The roles of institutional transitions and market opportunities

Author

Listed:
  • Jiatao Li

Abstract

This paper examines the influence of institutional transitions and market opportunities in emerging economies on the internationalization of entrepreneurial firms from these economies. We conceptualize and examine a three-stage model of institutional transition in emerging economies, and their effects on the internationalization strategies of new venture firms. Propositions are developed in examining how the different stages of the institutional transition can influence the strategic choices for the internationalization of new venture firms. In responding to the calls for more research on institutions and international entrepreneurship, this paper is an attempt extending the linkages between the two to the context of emerging economies. The paper also has managerial implications for entrepreneurs and the associated policy implications in international entrepreneurship. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Jiatao Li, 2013. "The internationalization of entrepreneurial firms from emerging economies: The roles of institutional transitions and market opportunities," Journal of International Entrepreneurship, Springer, vol. 11(2), pages 158-171, June.
    • Handle: RePEc:kap:jinten:v:11:y:2013:i:2:p:158-171
    DOI: 10.1007/s10843-013-0106-0
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10843-013-0106-0
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10843-013-0106-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sarasvathy, D. K. & Simon, Herbert A. & Lave, Lester, 1998. "Perceiving and managing business risks: differences between entrepreneurs and bankers," Journal of Economic Behavior & Organization, Elsevier, vol. 33(2), pages 207-225, January.
    2. Eric von Hippel, 1986. "Lead Users: A Source of Novel Product Concepts," Management Science, INFORMS, vol. 32(7), pages 791-805, July.
    3. Lowell W. Busenitz & Chung-Ming Lau, 1996. "A Cross-Cultural Cognitive Model of New Venture Creation," Entrepreneurship Theory and Practice, , vol. 20(4), pages 25-40, July.
    4. Timothy Bates, 1985. "Entrepreneur Human Capital Endowments and Minority Business Viability," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 540-554.
    5. Kaish, Stanley & Gilad, Benjamin, 1991. "Characteristics of opportunities search of entrepreneurs versus executives: Sources, interests, general alertness," Journal of Business Venturing, Elsevier, vol. 6(1), pages 45-61, January.
    6. Indujeeva Peiris & Michèle Akoorie & Paresha Sinha, 2012. "International entrepreneurship: A critical analysis of studies in the past two decades and future directions for research," Journal of International Entrepreneurship, Springer, vol. 10(4), pages 279-324, December.
    7. Evans, David S & Leighton, Linda S, 1989. "Some Empirical Aspects of Entrepreneurship," American Economic Review, American Economic Association, vol. 79(3), pages 519-535, June.
    8. Stearns, Timothy M. & Carter, Nancy M. & Reynolds, Paul D. & Williams, Mary L., 1995. "New firm survival: Industry, strategy, and location," Journal of Business Venturing, Elsevier, vol. 10(1), pages 23-42, January.
    9. Jing Yang & Jiatao Li, 2008. "The development of entrepreneurship in China," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 335-359, June.
    10. Timothy Dunne & Mark J. Roberts & Larry Samuelson, 1988. "Patterns of Firm Entry and Exit in U.S. Manufacturing Industries," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 495-515, Winter.
    11. Wim Naudé & Stephanié Rossouw, 2010. "Early international entrepreneurship in China: Extent and determinants," Journal of International Entrepreneurship, Springer, vol. 8(1), pages 87-111, March.
    12. Evans, David S & Jovanovic, Boyan, 1989. "An Estimated Model of Entrepreneurial Choice under Liquidity Constraints," Journal of Political Economy, University of Chicago Press, vol. 97(4), pages 808-827, August.
    13. David Ahlstrom & Garry D. Bruton, 2002. "An Institutional Perspective on the Role of Culture in Shaping Strategic Actions by Technology-Focused Entrepreneurial Firms in China," Entrepreneurship Theory and Practice, , vol. 26(4), pages 53-68, July.
    14. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    15. Cohen, Wesley M. & Levin, Richard C., 1989. "Empirical studies of innovation and market structure," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 2, chapter 18, pages 1059-1107, Elsevier.
    16. Kelley, Donna J. & Rice, Mark P., 2002. "Advantage beyond founding: The strategic use of technologies," Journal of Business Venturing, Elsevier, vol. 17(1), pages 41-57, January.
    17. Rodolphe Durand & Régis Coeurderoy, 2001. "Age, order of entry, strategic orientation, and organizational performance," Post-Print hal-00481163, HAL.
    18. Cooper, Arnold C. & Woo, Carolyn Y. & Dunkelberg, William C., 1989. "Entrepreneurship and the initial size of firms," Journal of Business Venturing, Elsevier, vol. 4(5), pages 317-332, September.
    19. Acs, Zoltan J & Audretsch, David B, 1987. "Innovation, Market Structure, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 69(4), pages 567-574, November.
    20. Bamford, Charles E. & Dean, Thomas J. & McDougall, Patricia P., 2000. "An examination of the impact of initial founding conditions and decisions upon the performance of new bank start-ups," Journal of Business Venturing, Elsevier, vol. 15(3), pages 253-277, May.
    21. Durand, Rodolphe & Coeurderoy, Regis, 2001. "Age, order of entry, strategic orientation, and organizational performance," Journal of Business Venturing, Elsevier, vol. 16(5), pages 471-494, September.
    22. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 2, number 2.
    23. Zahra, Shaker A. & Bogner, William C., 2000. "Technology strategy and software new ventures' performance: Exploring the moderating effect of the competitive environment," Journal of Business Venturing, Elsevier, vol. 15(2), pages 135-173, March.
    24. Christine Oliver, 1997. "Sustainable competitive advantage: combining institutional and resource‐based views," Strategic Management Journal, Wiley Blackwell, vol. 18(9), pages 697-713, October.
    25. Bates, Timothy, 1990. "Entrepreneur Human Capital Inputs and Small Business Longevity," The Review of Economics and Statistics, MIT Press, vol. 72(4), pages 551-559, November.
    26. Kenneth C. Robinson & Patricia Phillips McDougall, 2001. "Entry barriers and new venture performance: a comparison of universal and contingency approaches," Strategic Management Journal, Wiley Blackwell, vol. 22(6‐7), pages 659-685, June.
    27. R. Schmalensee & R. Willig (ed.), 1989. "Handbook of Industrial Organization," Handbook of Industrial Organization, Elsevier, edition 1, volume 1, number 1.
    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. Agnieszka Żur, 2015. "Opportunity Identification and Creation as Factors of Firm Internationalisation," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 25-39.
    2. Vi Dung Ngo & Frank Janssen & Marine Falize, 2016. "An incentive-based model of international entrepreneurship in emerging and transition economies," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 52-74, March.
    3. Liu, Xiaming & Yang, Na & Li, Linjie & Liu, Yuanyuan, 2021. "Co-evolution of emerging economy MNEs and institutions: A literature review," International Business Review, Elsevier, vol. 30(4).
    4. Luis Alfonso Dau & Aya S. Chacar & Marjorie A. Lyles & Jiatao Li, 2022. "Informal institutions and international business: Toward an integrative research agenda," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 985-1010, August.
    5. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    6. Christopher Williams & Ana Colovic & Jiqing Zhu, 2016. "Foreign Market Knowledge, Country Sales Breadth And Innovative Performance Of Emerging Economy Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-25, August.
    7. Syed Tariq Anwar, 2017. "Alibaba: Entrepreneurial growth and global expansion in B2B/B2C markets," Journal of International Entrepreneurship, Springer, vol. 15(4), pages 366-389, December.
    8. Williams, Christopher & Lee, Soo Hee, 2016. "Knowledge flows in the emerging market MNC: The role of subsidiary HRM practices in Korean MNCs," International Business Review, Elsevier, vol. 25(1), pages 233-243.
    9. Bahl, Mona & Lahiri, Somnath & Mukherjee, Debmalya, 2021. "Managing internationalization and innovation tradeoffs in entrepreneurial firms: Evidence from transition economies," Journal of World Business, Elsevier, vol. 56(1).
    10. Salar Gholizadeh & Reza Mohammadkazemi, 2022. "International entrepreneurial opportunity: A systematic review, meta-synthesis, and future research agenda," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 218-254, June.
    11. Weiping Liu & Jiatao Li, 2019. "Unbalanced Institutions in Market Transition: How Do They Matter for Firm Strategic Choices and Performance in Emerging Economies?," Management International Review, Springer, vol. 59(5), pages 675-702, October.
    12. Abrar Ali Saiyed & Stephanie A. Fernhaber & Rakesh Basant & Karthik Dhandapani, 2021. "The internationalization of new ventures in an emerging economy: The shifting role of industry concentration," Asia Pacific Journal of Management, Springer, vol. 38(4), pages 1467-1497, December.
    13. Muralidharan, Etayankara & Pathak, Saurav, 2017. "Informal institutions and international entrepreneurship," International Business Review, Elsevier, vol. 26(2), pages 288-302.
    14. Fernhaber, Stephanie & Li, Dan & Wu, Aiqi, 2019. "Internationalization of emerging-economy new ventures: The role of within-country differences," Business Horizons, Elsevier, vol. 62(4), pages 497-507.
    15. Dan Li & Li-Qun Wei & Qing Cao & Deqiu Chen, 2022. "Informal institutions, entrepreneurs’ political participation, and venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 53(6), pages 1062-1090, August.

    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. Bamford, Charles E. & Dean, Thomas J. & Douglas, Thomas J., 2004. "The temporal nature of growth determinants in new bank foundings: implications for new venture research design," Journal of Business Venturing, Elsevier, vol. 19(6), pages 899-919, November.
    2. Enrico Santarelli & Marco Vivarelli, 2007. "Entrepreneurship and the process of firms’ entry, survival and growth," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(3), pages 455-488, June.
    3. Ghosal, Vivek, 2002. "Impact of Uncertainty and Sunk Costs on Firm Survival and Industry Dynamics," Royal Economic Society Annual Conference 2002 86, Royal Economic Society.
    4. Rajan, Raghuram & Laeven, Luc & Klapper, Leora F., 2004. "Business Environment and Firm Entry: Evidence from International Data," CEPR Discussion Papers 4366, C.E.P.R. Discussion Papers.
    5. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
    6. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 22(6), pages 1453-1495, December.
    7. Jing Yang & Jiatao Li, 2008. "The development of entrepreneurship in China," Asia Pacific Journal of Management, Springer, vol. 25(2), pages 335-359, June.
    8. Scott Shane, 2001. "Technological Opportunities and New Firm Creation," Management Science, INFORMS, vol. 47(2), pages 205-220, February.
    9. Luc Laeven & Christopher Woodruff, 2007. "The Quality of the Legal System, Firm Ownership, and Firm Size," The Review of Economics and Statistics, MIT Press, vol. 89(4), pages 601-614, November.
    10. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    11. E. Cefis & M. Ghita, 2008. "Post Merger Innovative Patterns in Small and Medium Firms," Working Papers 08-09, Utrecht School of Economics.
    12. Liliana Doganova, 2009. "Entrepreneurship as a process of collective exploration," Working Papers halshs-00431695, HAL.
    13. Lau, Chung-Ming & Yiu, Daphne W. & Yeung, Ping-Kwong & Lu, Yuan, 2008. "Strategic orientation of high-technology firms in a transitional economy," Journal of Business Research, Elsevier, vol. 61(7), pages 765-777, July.
    14. Bates, Timothy, 1995. "Self-employment entry across industry groups," Journal of Business Venturing, Elsevier, vol. 10(2), pages 143-156, March.
    15. Shastitko. Andrey (Шаститко, Андрей) & Komkova, Anastasia Andreevna (Комкова, Анастасия Андреевна) & Kurdin, Alexander (Курдин, Александр) & Shastitko, Anastasia (Шаститко, Анастасия), 2016. "Competition Policy and Incentives for Innovation [Конкурентная Политика И Стимулы К Инновационной Деятельности]," Working Papers 1447, Russian Presidential Academy of National Economy and Public Administration.
    16. Nyström, Kristina, 2005. "Firm Maturity and Product Processes R&D in Swedish Manufacturing Firms," Working Paper Series in Economics and Institutions of Innovation 39, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    17. Edward P. Lazear, 2005. "Entrepreneurship," Journal of Labor Economics, University of Chicago Press, vol. 23(4), pages 649-680, October.
    18. Noor Ismail & Olli Kuivalainen, 2015. "The effect of internal capabilities and external environment on small- and medium-sized enterprises’ international performance and the role of the foreign market scope: The case of the Malaysian halal," Journal of International Entrepreneurship, Springer, vol. 13(4), pages 418-451, December.
    19. Philipp Koellinger, 2008. "Why are some entrepreneurs more innovative than others?," Small Business Economics, Springer, vol. 31(1), pages 21-37, June.
    20. Ashish Arora & Anand Nandkumar, 2011. "Cash-Out or Flameout! Opportunity Cost and Entrepreneurial Strategy: Theory, and Evidence from the Information Security Industry," Management Science, INFORMS, vol. 57(10), pages 1844-1860, October.

    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:kap:jinten:v:11:y:2013:i:2:p:158-171. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.