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Early International Entrepreneurship in China: Extent and Determinants

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Author Info
Naude, Wim
Rossouw, Stephanie

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Abstract

We use data on 3,948 Chinese firms obtained from the World Bank.s Investment Climate Private Enterprise Survey to investigate early international entrepreneurship (international new ventures) in China. The extent of early international entrepreneurship in China is significant: 65 per cent of the exporting firms start export operations within three years. Foreign shareholders within the firm and an entrepreneur with previous exporting experience are noted to significantly increase the probability that a firm internationalizes early. However, we find marked differences in the behaviour of indigenous and foreign-invested firms. Thus, while business networks are significant for firms wishing to export indirectly and for older indigenous firms, it is noted to delay the internationalization process of indigenous firms. Also, for an indigenous firm, the greater the foreign experience of its entrepreneur, the less likely it is to start exporting early.

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File URL: http://www.wider.unu.edu/stc/repec/pdfs/rp2009/RP2009-16.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Papers with number UNU-WIDER Research Paper RP2009/16.

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Length: 27
Date of creation: 2009
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Handle: RePEc:unu:wpaper:rp2009-16

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Related research
Keywords: entrepreneurship; internationalization; international new ventures; exports; China;

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References listed on IDEAS
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  1. Michael A Witt & Arie Y Lewin, 2007. "Outward foreign direct investment as escape response to home country institutional constraints," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 38(4), pages 579-594, July. [Downloadable!] (restricted)
  2. Westhead, Paul & Wright, Mike & Ucbasaran, Deniz, 2001. "The internationalization of new and small firms: A resource-based view," Journal of Business Venturing, Elsevier, vol. 16(4), pages 333-358, July. [Downloadable!] (restricted)
  3. Albert Park & Dean Yang & Xinzheng Shi & Yuan Jiang, 2009. "Exporting and Firm Performance: Chinese Exporters and the Asian Financial Crisis," NBER Working Papers 14632, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Tan, Justin, 2001. "Innovation and risk-taking in a transitional economy: A comparative study of chinese managers and entrepreneurs," Journal of Business Venturing, Elsevier, vol. 16(4), pages 359-376, July. [Downloadable!] (restricted)
  5. F. Gerard Adams & Byron Gangnes & Yochanan Shachmurove, 2006. "Why is China so Competitive? Measuring and Explaining China's Competitiveness," The World Economy, Blackwell Publishing, vol. 29(2), pages 95-122, 02. [Downloadable!] (restricted)
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  6. Dollar, David, 2008. "Lessons from China for Africa," Policy Research Working Paper Series 4531, The World Bank. [Downloadable!]
  7. 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. [Downloadable!] (restricted)
  8. Fonseca, Raquel & Lopez-Garcia, Paloma & Pissarides, Christopher A., 2001. "Entrepreneurship, start-up costs and employment," European Economic Review, Elsevier, vol. 45(4-6), pages 692-705, May. [Downloadable!] (restricted)
  9. Taye Mengistae & Catherine Pattillo, 2004. "Export Orientation and Productivity in Sub-Saharan Africa," IMF Staff Papers, Palgrave Macmillan Journals, vol. 51(2), pages 6. [Downloadable!] (restricted)
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  10. Elizabeth Maitland & Elizabeth L Rose & Stephen Nicholas, 2005. "How firms grow: clustering as a dynamic model of internationalization," Journal of International Business Studies, Palgrave Macmillan Journals, vol. 36(4), pages 435-451, July. [Downloadable!] (restricted)
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