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Problemistic Search and International Entrepreneurship

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Author Info

  • Wennberg, Karl

    ()
    (Dept. of Business Administration, Stockholm School of Economics)

  • Holmquist, Carin

    ()
    (Dept. of Business Administration, Stockholm School of Economics)

Abstract

This paper explains the internationalization process of small firms using the theory of performance relative to aspiration levels. The study complements prior theory by explaining why and how small firms are triggered to engage in internationalization despite not reaching maturity in their home market. We outline a model where firms’ internationalization is triggered by problemistic search, following periods of below-aspiration performance. The model is tested on 860 Swedish firms followed during an economic downturn. Results indicate that internationalization activities follow a boundedly rational process characterized by search behavior which is triggered by performance feedback. The study complements prior theories of internationalization and offers a first empirical demonstration of the viability of aspiration-level performance theory in international entrepreneurship research.

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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Business Administration with number 2008:2.

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Length: 41 pages
Date of creation: 05 Jul 2007
Date of revision: 05 Jan 2009
Publication status: Forthcoming in European Management Journal, 2008.
Handle: RePEc:hhb:hastba:2008_002

Contact details of provider:
Postal: The Economic Research Institute, Stockholm School of Economics, P.O. Box 6501, SE 113 83 Stockholm, Sweden
Phone: +46-(0)8-736 90 00
Fax: +46-(0)8-31 01 57
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Web page: http://www.hhs.se/
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Related research

Keywords: Entrepreneurship; International Entry; Behavioral Theory of the Firm;

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Cited by:
  1. 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.
  2. 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.

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