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Assets and Actions: Firm-Specific Factors in the Internationalization of U.S. Internet Firms

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Author Info

  • Suresh Kotha

    (University of Washington)

  • Violina P Rindova

    (University of Maryland)

  • Frank T Rothaermel

    (Michigan State University)

Abstract

By providing a nearly instant connection among parties at opposite corners of the world and enabling a variety of commercial exchanges, the Internet emerged as the technology expected to create a truly global market space. Internet firms faced the challenge of capitalizing on this development. In this paper we examine what firm-specific factors are associated with the propensity of pure U.S.-based Internet firms to enhance their international presence on the Internet by developing country-specific websites. Despite the assertion that all Internet firms are born global, our findings show that the pursuit of internationalization by Internet firms is related to the levels of their intangible assets and strategic activity. Two types of intangible assets—reputation and website traffic—are positively related to the degree of internationalization; so are the levels of competitive and cooperative activity, and the interaction effects between reputation and competitive and cooperative activity. These findings suggest that ideas from both resource-based theory and research on competitive dynamics can contribute to understanding the internationalization of Internet firms.© 2001 JIBS. Journal of International Business Studies (2001) 32, 769–791

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 32 (2001)
Issue (Month): 4 (December)
Pages: 769-791

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Handle: RePEc:pal:jintbs:v:32:y:2001:i:4:p:769-791

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Cited by:
  1. Jeanjean, Thomas & Lesage, Cédric & Stolowy, Hervé, 2010. "Why do you speak English (in your annual report)?," The International Journal of Accounting, Elsevier, vol. 45(2), pages 200-223, June.
  2. Fernhaber, Stephanie A. & Li, Dan, 2013. "International exposure through network relationships: Implications for new venture internationalization," Journal of Business Venturing, Elsevier, vol. 28(2), pages 316-334.
  3. Glavas, Charmaine & Mathews, Shane, 2014. "How international entrepreneurship characteristics influence Internet capabilities for the international business processes of the firm," International Business Review, Elsevier, vol. 23(1), pages 228-245.
  4. Milanov, Hana & Fernhaber, Stephanie A., 2014. "When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective," Journal of Business Venturing, Elsevier, vol. 29(3), pages 377-391.
  5. Musteen, Martina & Rhyne, Lawrence & Zheng, Congcong, 2013. "Asset or constraint: Corporate reputation and MNCs’ involvement in the least developed countries," Journal of World Business, Elsevier, vol. 48(3), pages 321-328.
  6. Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
  7. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
  8. Bruton, Garry D. & Lohrke, Franz T. & Lu, Jane W., 2004. "The evolving definition of what comprises international strategic management research," Journal of International Management, Elsevier, vol. 10(3), pages 413-429.
  9. Brennan, L. & Garvey, D., 2009. "The role of knowledge in internationalization," Research in International Business and Finance, Elsevier, vol. 23(2), pages 120-133, June.
  10. Giarratana, Marco S., 2004. "The birth of a new industry: entry by start-ups and the drivers of firm growth: The case of encryption software," Research Policy, Elsevier, vol. 33(5), pages 787-806, July.
  11. Rudolf Sinkovics & Jim Bell, 2005. "Current perspectives on international entrepreneurship and the Internet," Journal of International Entrepreneurship, Springer, vol. 3(4), pages 247-249, December.
  12. Luis Dib & Angela Rocha & Jorge Silva, 2010. "The internationalization process of Brazilian software firms and the born global phenomenon: Examining firm, network, and entrepreneur variables," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 233-253, September.
  13. Chang, Sea Jin, 2004. "Venture capital financing, strategic alliances, and the initial public offerings of Internet startups," Journal of Business Venturing, Elsevier, vol. 19(5), pages 721-741, September.
  14. Gleason, Kimberly C. & Wiggenhorn, Joan, 2007. "Born globals, the choice of globalization strategy, and the market's perception of performance," Journal of World Business, Elsevier, vol. 42(3), pages 322-335, September.
  15. Yamin, Mohammad & Sinkovics, Rudolf R., 2006. "Online internationalisation, psychic distance reduction and the virtuality trap," International Business Review, Elsevier, vol. 15(4), pages 339-360, August.
  16. Gabrielsson, Mika & Gabrielsson, Peter, 2011. "Internet-based sales channel strategies of born global firms," International Business Review, Elsevier, vol. 20(1), pages 88-99, February.
  17. Li, Dan, 2013. "Multilateral R&D alliances by new ventures," Journal of Business Venturing, Elsevier, vol. 28(2), pages 241-260.
  18. Reuber, A. Rebecca & Fischer, Eileen, 2011. "International entrepreneurship in internet-enabled markets," Journal of Business Venturing, Elsevier, vol. 26(6), pages 660-679.

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