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Internationalization of young technology firms: A complementary perspective on antecedents of foreign market familiarity

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  • Schwens, Christian
  • Kabst, Ruediger

Abstract

Foreign market familiarity is a central construct, which both traditional Process Theories of Internationalization (PTI) and International New Venture Theory (INVT) emphasize. The present study combines PTI and INVT reasoning and develops an entrepreneurial process view to study pre- and post-entry antecedents of technology firms' foreign market familiarity. Combining PTI and INVT reasoning, we theoretically examine the role of prior foreign market analysis, interaction with foreign market players, and exposure to foreign market particularities as antecedents of foreign market familiarity. We test hypotheses on a dataset of n = 248 internationally acting German technology firms. The results show that technology firms internationalize in a proactive manner as suggested by INVT scholars, but in a systematic way as suggested by PTI scholars. Hence, the present study leads to a further convergence of the two domains of IB and IE.

Suggested Citation

  • Schwens, Christian & Kabst, Ruediger, 2011. "Internationalization of young technology firms: A complementary perspective on antecedents of foreign market familiarity," International Business Review, Elsevier, vol. 20(1), pages 60-74, February.
  • Handle: RePEc:eee:iburev:v:20:y:2011:i:1:p:60-74
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    Cited by:

    1. Laufs, Katharina & Schwens, Christian, 2014. "Foreign market entry mode choice of small and medium-sized enterprises: A systematic review and future research agenda," International Business Review, Elsevier, vol. 23(6), pages 1109-1126.
    2. Shao, Yanmin & Shang, Yan, 2016. "Decisions of OFDI Engagement and Location for Heterogeneous Multinational firms: Evidence from Chinese firms," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 178-187.
    3. Gerschewski, Stephan & Xiao, Simon Shufeng, 2015. "Beyond financial indicators: An assessment of the measurement of performance for international new ventures," International Business Review, Elsevier, vol. 24(4), pages 615-629.
    4. Muralidharan, Etayankara & Pathak, Saurav, 2017. "Informal institutions and international entrepreneurship," International Business Review, Elsevier, vol. 26(2), pages 288-302.
    5. Baum, Matthias & Schwens, Christian & Kabst, Ruediger, 2015. "A latent class analysis of small firms’ internationalization patterns," Journal of World Business, Elsevier, vol. 50(4), pages 754-768.

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