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From international new ventures to MNCs: Crossing the chasm effect on internationalization paths

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  • Li, Qinghai
  • Deng, Ping

Abstract

This paper explores the market expansion path of knowledge-based international new ventures (KINVs) toward multinational corporations (MNCs) over time and identifies relevant enabling factors. Integrating crossing the chasm and international new venture (INV) theories, we analyzed international expansion paths of four KINVs headquartered in three countries (the U.S., Japan, and Israel). Based on trademark data, triangulated by both sales data and primary interviews of corporate executives, we proposed an integrative framework to examine the effect of crossing the chasm on market expansion paths towards MNCs. Our findings suggest that KINVs that cross the chasm in lead market are more likely to become MNCs. Our studies also identify several important factors that enable KINVs toward MNCs; these enabling factors include firm-specific assets and capabilities (e.g., proven products, R&D expertise, intellectual property assets, brands and reputation), partnership with leading customers, and collaborators built during the dynamic process of crossing the chasm.

Suggested Citation

  • Li, Qinghai & Deng, Ping, 2017. "From international new ventures to MNCs: Crossing the chasm effect on internationalization paths," Journal of Business Research, Elsevier, vol. 70(C), pages 92-100.
    • Handle: RePEc:eee:jbrese:v:70:y:2017:i:c:p:92-100
    DOI: 10.1016/j.jbusres.2016.07.002
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    3. Romina Gómez-Prado & Aldo Alvarez-Risco & Berdy Briggitte Cuya-Velásquez & Marián Arias-Meza & Nilda Campos-Dávalos & Luis Juarez-Rojas & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Ar, 2022. "Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    4. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    5. Joan Freixanet & Ryan Federo, 2022. "When Born Globals Grow Up: A Review and Agenda for Research on the Performance of Maturing Early Internationalizers," Management International Review, Springer, vol. 62(6), pages 817-857, December.
    6. Stephen Petrie & Mitchell Adams & Ben Mitra‐Kahn & Matthew Johnson & Russell Thomson & Paul Jensen & Alfons Palangkaraya & Elizabeth Webster, 2020. "TM‐Link: An Internationally Linked Trademark Database," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 53(2), pages 254-269, June.
    7. Angélique Breuillot & Rachel Bocquet & Véronique Favre-Bonté, 2022. "Navigating the internationalization process: Strategic resources for early internationalizing firms," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 282-315, June.
    8. Norwan Ahmad & Ng Siew Imm & Yuhanis Abdul Aziz & Norazlyn Kamal Basha, 2020. "Why Not Knowledge-Based HRM? Its Direct and Indirect Effect on Innovative Service Offerings," SAGE Open, , vol. 10(4), pages 21582440209, December.
    9. Yougen Cao & Shengce Ren & Mei Du, 2022. "Strategic trademark management: a systematic literature review and prospects for future research," Journal of Brand Management, Palgrave Macmillan, vol. 29(5), pages 435-453, September.
    10. Øyna, Stine & Almor, Tamar & Elango, B. & Tarba, Shlomo Y., 2018. "Maturing born globals and their acquisitive behaviour," International Business Review, Elsevier, vol. 27(3), pages 714-725.
    11. Deng, Ping & Zhang, Shuo, 2018. "Institutional quality and internationalization of emerging market firms: Focusing on Chinese SMEs," Journal of Business Research, Elsevier, vol. 92(C), pages 279-289.
    12. Ciszewska-Mlinarič, Mariola & Wójcik, Piotr & Obłój, Krzysztof, 2020. "Learning dynamics of rapidly internationalizing venture: Beyond the early stage of international growth in a CEE context," Journal of Business Research, Elsevier, vol. 108(C), pages 450-465.
    13. Juan M. Gil-Barragan & María José López-Sánchez, 2021. "The Fast Lane of Internationalization of Latin American SMEs: A Location-Based Approach," Sustainability, MDPI, vol. 13(6), pages 1-20, March.
    14. Lee, Jeoung Yul & Jiménez, Alfredo & Yang, Young Soo & Irisboev, Ilkhom, 2022. "The evolution of emerging market firms and time until subsidiary exit: Competitive dynamics of domestic market followers and contingency factors," Journal of Business Research, Elsevier, vol. 145(C), pages 694-704.

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