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Why are some firms more internationally committed thand others? The role of knowledge, firm development stage, and optimism

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  • Niels Bosma
  • Dirk De Clercq

Abstract

In this study we use a unique data set to examine factors related to international commitment of owner-managed firms. We draw on different streams of research such as the knowledge-based view, the stage theory of internationalization and the new venture theory of internationalization to study firms involvement in foreign markets. Our results suggest that knowledge-based resources embedded in the management team and the firms attitude towards innovation increase international commitment. Further, consistent with the stage theory of internationalization, we find that firms demonstrate a pattern of steadily increasing foreign commitment. However, this latter finding was obtained only after taking into account the firms optimism in terms of future growth. Optimism among start-ups therefore may obscure the relationship between firm development stage on the one hand and international commitment on the other.

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  • Niels Bosma & Dirk De Clercq, 2004. "Why are some firms more internationally committed thand others? The role of knowledge, firm development stage, and optimism," Scales Research Reports N200408, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:n200408
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    Cited by:

    1. Andrea S. Gubik, 2011. "A Comparison of Experts' and Entrepreneurs' Opinions on International Business Activity," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 7(02), pages 47-54.
    2. Andrea S. Gubik & Sándor Karajz, 2014. "The Choice of Foreign Market Entry Modes: The Role of Resources and Industrial Driving Forces," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 2(1), pages 49-63.
    3. Bartha, Zoltán & S. Gubik, Andrea, 2014. "SME Internalisation Index (SMINI) Based on the Sample of the Visegrad Countries," MPRA Paper 57382, University Library of Munich, Germany, revised 10 Jul 2014.

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