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Entrepreneurial decision-making in internationalization: Propositions from mid-size firms

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  • Perks, Keith J.
  • Hughes, Mathew

Abstract

Research into international entrepreneurship tends to focus on new ventures rather than larger established firms. Few studies have considered why an entrepreneurial manager in an established firm is motivated to undertake international market entry. Propositions relating to factors motivating the international market entry decision of entrepreneurial managers in mid-sized firms are created and evaluated through in-depth interviews with entrepreneurial managers. We find contrary to extant theory that cultural context, industry environment and resource constraints do not motivate or hinder an entrepreneurial manager's decision to internationalize. Rather, the entrepreneurial manager's connection with the customer, tacit knowledge and vision and product-service complexity are the strongest influences on the decision to internationalize, which is moderated by the strength of the business case and resource-based risk tolerance. This implies a much greater strategic approach by entrepreneurial managers than typically portrayed in current literature. Our research provides researchers with grounded propositions for further empirical testing.

Suggested Citation

  • Perks, Keith J. & Hughes, Mathew, 2008. "Entrepreneurial decision-making in internationalization: Propositions from mid-size firms," International Business Review, Elsevier, vol. 17(3), pages 310-330, June.
  • Handle: RePEc:eee:iburev:v:17:y:2008:i:3:p:310-330
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    References listed on IDEAS

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    Cited by:

    1. Tuija Mainela & Vesa Puhakka & Per Servais, 2015. "Boundary crossing for international opportunities," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 173-185, September.
    2. Swoboda, Bernhard & Olejnik, Edith & Morschett, Dirk, 2011. "Changes in foreign operation modes: Stimuli for increases versus reductions," International Business Review, Elsevier, vol. 20(5), pages 578-590, October.
    3. repec:eee:spacre:v:16:y:2013:i:1:p:53-65 is not listed on IDEAS
    4. repec:kap:jinten:v:15:y:2017:i:3:d:10.1007_s10843-016-0168-x is not listed on IDEAS
    5. Antonin Ricard & Ekaterina Pennec & Emmanuelle Reynaud, 2016. "Representation as a driver of internationalization: The case of a singular Russian SME," Journal of International Entrepreneurship, Springer, vol. 14(1), pages 96-120, March.
    6. repec:spr:manint:v:54:y:2014:i:4:d:10.1007_s11575-014-0213-8 is not listed on IDEAS
    7. Dimitratos, Pavlos & Amorós, José Ernesto & Etchebarne, María Soledad & Felzensztein, Christian, 2014. "Micro-multinational or not? International entrepreneurship, networking and learning effects," Journal of Business Research, Elsevier, vol. 67(5), pages 908-915.
    8. Dimitratos, Pavlos & Plakoyiannaki, Emmanuella & Pitsoulaki, Antigoni & Tüselmann, Heinz Josef, 2010. "The global smaller firm in international entrepreneurship," International Business Review, Elsevier, vol. 19(6), pages 589-606, December.
    9. 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.
    10. Maha Ayadi-Frikha, 2014. "Cognitive Map for Identifying the Determinants of the Early and Rapidly Internationalizing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 5(3), pages 633-645, September.
    11. José Ernesto Amorós & Rodrigo Basco & Gianni Romaní, 2016. "Determinants of early internationalization of new firms: the case of Chile," International Entrepreneurship and Management Journal, Springer, vol. 12(1), pages 283-307, March.
    12. Mathews, Shane & Bianchi, Constanza & Perks, Keith J. & Healy, Marilyn & Wickramasekera, Rumintha, 2016. "Internet marketing capabilities and international market growth," International Business Review, Elsevier, vol. 25(4), pages 820-830.
    13. repec:aes:jetimm:v:1:y:2017:i:1:p:181-193 is not listed on IDEAS

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