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Entry Learning, Age at Internationalization, and Foreign-Venture Performance of Young Technology Firms

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  • Christian Schwens/Rüdiger Kabst

Abstract

The central question that we address is how young technology firms (YTFs) learn about foreign markets when they venture abroad for the very first time. Drawing on learning theory, we develop and test a model for the entry learning and foreign-venture performance of YTF. Our empirical results show that prior foreign market analysis leads firms to postpone the first internationalization, but network learning and imitation lead to earlier international venturing. Further, our results show that the earlier technology firms venture into foreign markets, the higher the foreign-venture performance of the firm.

Suggested Citation

  • Christian Schwens/Rüdiger Kabst, 2011. "Entry Learning, Age at Internationalization, and Foreign-Venture Performance of Young Technology Firms," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 63(3), pages 308-330, July.
  • Handle: RePEc:sbr:abstra:v:63:y:2011:i:3:p:308-330
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    Keywords

    Age at Internationalization; Entry Learning; Foreign-venture Performance; Technology Firms.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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