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Early International Entrepreneurship in China: Extent and Determinants

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  • Naude, Wim
  • Rossouw, Stephanie

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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Bibliographic Info

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
Date of revision:
Handle: RePEc:unu:wpaper:rp2009-16

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

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References

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  1. 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.
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  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.
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  14. Zhou, Lianxi, 2007. "The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization," Journal of World Business, Elsevier, vol. 42(3), pages 281-293, September.
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Citations

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Cited by:
  1. Naude, Wim & Matthee, Marianne, 2012. "Do Export Costs Matter in Determining Whether, When, and How Much African Firms Export?," Working Papers 38, JICA Research Institute.
  2. Naudé, Wim & Gries, Thomas & Bilkic, Natasa, 2013. "Firm-Level Heterogeneity and the Decision to Export: A Real Option Approach," IZA Discussion Papers 7346, Institute for the Study of Labor (IZA).
  3. Gries, Thomas & Naude, Wim, 2010. "Entrepreneurship, Structural Change and a Global Economic Crisis," Working Papers wp2010-57, World Institute for Development Economic Research (UNU-WIDER).
  4. Wim Naudé & Marianne Matthee, 2011. "The impact of transport costs on new venture internationalisation," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 62-89, March.
  5. Brach, Juliane & Naudé, Wim, 2012. "International entrepreneurship and technological capabilities in the Middle East and North Africa," UNU-MERIT Working Paper Series 020, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology.

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