IDEAS home Printed from https://ideas.repec.org/a/eee/jbvent/v28y2013i2p316-334.html
   My bibliography  Save this article

International exposure through network relationships: Implications for new venture internationalization

Author

Listed:
  • Fernhaber, Stephanie A.
  • Li, Dan

Abstract

Drawing on the network literature and attention-based view, we examine the extent to which international exposure from key informal (geographically proximate firms) and formal (alliance partners) network relationships impacts new venture internationalization. Our findings are three-fold. First, international exposure from both types of network relationships positively influence new venture internationalization, and serve as substitutes for each other. Second, the effects differ based on the age of the venture. While older ventures benefit more from international exposure from alliance partners, younger ventures are more influenced by international exposure from geographically proximate firms. Third, our analysis confirms a three-way interactive effect of age and international exposure from informal and formal relationships on new venture internationalization.

Suggested Citation

  • Fernhaber, Stephanie A. & Li, Dan, 2013. "International exposure through network relationships: Implications for new venture internationalization," Journal of Business Venturing, Elsevier, vol. 28(2), pages 316-334.
  • Handle: RePEc:eee:jbvent:v:28:y:2013:i:2:p:316-334
    DOI: 10.1016/j.jbusvent.2012.05.002
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0883902612000675
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Davenport, Sally, 2005. "Exploring the role of proximity in SME knowledge-acquisition," Research Policy, Elsevier, vol. 34(5), pages 683-701, June.
    2. Liang Shao & Chuck CY Kwok & Omrane Guedhami, 2010. "National culture and dividend policy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(8), pages 1391-1414, October.
    3. Aitken, Brian & Hanson, Gordon H. & Harrison, Ann E., 1997. "Spillovers, foreign investment, and export behavior," Journal of International Economics, Elsevier, vol. 43(1-2), pages 103-132, August.
    4. McDougall, Patricia P., 1989. "International versus domestic entrepreneurship: New venture strategic behavior and industry structure," Journal of Business Venturing, Elsevier, vol. 4(6), pages 387-400, November.
    5. Homin Chen & Tain-Jy Chen, 1998. "Network Linkages and Location Choice in Foreign Direct Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 29(3), pages 445-467, September.
    6. Sapienza, Harry J. & De Clercq, Dirk & Sandberg, William R., 2005. "Antecedents of international and domestic learning effort," Journal of Business Venturing, Elsevier, vol. 20(4), pages 437-457, July.
    7. Chang, Sea Jin, 2004. "Venture capital financing, strategic alliances, and the initial public offerings of Internet startups," Journal of Business Venturing, Elsevier, vol. 19(5), pages 721-741, September.
    8. Lemarie, Stephane & Mangematin, Vincent & Torre, Andre, 2001. "Is the Creation and Development of Biotech SMEs Localised? Conclusions Drawn from the French Case," Small Business Economics, Springer, vol. 17(1-2), pages 61-76, Aug.-Sept.
    9. Luigi Aldieri & Michele Cincera, 2009. "Geographic and technological R&D spillovers within the triad: micro evidence from US patents," The Journal of Technology Transfer, Springer, vol. 34(2), pages 196-211, April.
    10. Jan Johanson & Jan-Erik Vahlne, 2009. "The Uppsala internationalization process model revisited: From liability of foreignness to liability of outsidership," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(9), pages 1411-1431, December.
    11. Robert E. Quinn & Kim Cameron, 1983. "Organizational Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary Evidence," Management Science, INFORMS, vol. 29(1), pages 33-51, January.
    12. Alan D. MacPherson, 1998. "Academic-industry linkages and small firm innovation: evidence from the scientific instruments sector," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(4), pages 261-276, January.
    13. John H Dunning, 1995. "Reappraising the Eclectic Paradigm in an Age of Alliance Capitalism," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 26(3), pages 461-491, September.
    14. Casillas, José C. & Moreno, Ana M. & Acedo, Francisco J. & Gallego, María A. & Ramos, Encarnación, 2009. "An integrative model of the role of knowledge in the internationalization process," Journal of World Business, Elsevier, vol. 44(3), pages 311-322, July.
    15. Autio, Erkko & Hameri, Ari-Pekka & Vuola, Olli, 2004. "A framework of industrial knowledge spillovers in big-science centers," Research Policy, Elsevier, vol. 33(1), pages 107-126, January.
    16. Ho‐Uk Lee & Jong‐Hun Park, 2008. "The Influence of Top Management Team International Exposure on International Alliance Formation," Journal of Management Studies, Wiley Blackwell, vol. 45(5), pages 961-981, July.
    17. Colette Southam & Stephen Sapp, 2010. "Compensation across executive labor markets: What can we learn from cross-listed firms?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(1), pages 70-87, January.
    18. Sharma, D. Deo & Blomstermo, Anders, 2003. "The internationalization process of Born Globals: a network view," International Business Review, Elsevier, vol. 12(6), pages 739-753, December.
    19. Haahti, Antti & Madupu, Vivekananda & Yavas, Ugur & Babakus, Emin, 2005. "Cooperative strategy, knowledge intensity and export performance of small and medium sized enterprises," Journal of World Business, Elsevier, vol. 40(2), pages 124-138, May.
    20. McCann, Brian T. & Folta, Timothy B., 2011. "Performance differentials within geographic clusters," Journal of Business Venturing, Elsevier, vol. 26(1), pages 104-123, January.
    21. Leiblein, Michael J. & Reuer, Jeffrey J., 2004. "Building a foreign sales base: the roles of capabilities and alliances for entrepreneurial firms," Journal of Business Venturing, Elsevier, vol. 19(2), pages 285-307, March.
    22. A Rebecca Reuber & Eileen Fischer, 1997. "The Influence of the Management Team’s International Experience on the Internationalization Behaviors of SMES," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 807-825, December.
    23. Coviello, Nicole & Munro, Hugh, 1997. "Network relationships and the internationalisation process of small software firms," International Business Review, Elsevier, vol. 6(4), pages 361-386, August.
    24. Suresh Kotha & Violina P Rindova & Frank T Rothaermel, 2001. "Assets and Actions: Firm-Specific Factors in the Internationalization of U.S. Internet Firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 32(4), pages 769-791, December.
    25. Thomas Hutzschenreuter & Torben Pedersen & Henk W Volberda, 2007. "The role of path dependency and managerial intentionality: a perspective on international business research," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(7), pages 1055-1068, December.
    26. Audretsch, David B, 1998. "Agglomeration and the Location of Innovative Activity," Oxford Review of Economic Policy, Oxford University Press, vol. 14(2), pages 18-29, Summer.
    27. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    28. Paul D Ellis, 2011. "Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(1), pages 99-127, January.
    29. Larson, Andrea, 1991. "Partner networks: Leveraging external ties to improve entrepreneurial performance," Journal of Business Venturing, Elsevier, vol. 6(3), pages 173-188, May.
    30. Julian Birkinshaw & Neil Hood, 2000. "Characteristics of Foreign Subsidiaries in Industry Clusters," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 31(1), pages 141-154, March.
    31. Jan Johanson & Jan-Erik Vahlne, 1977. "The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 8(1), pages 23-32, March.
    32. McKelvey, Maureen & Alm, Hakan & Riccaboni, Massimo, 2003. "Does co-location matter for formal knowledge collaboration in the Swedish biotechnology-pharmaceutical sector?," Research Policy, Elsevier, vol. 32(3), pages 483-501, March.
    33. Vigdis Boasson & Alan MacPherson & Hyun-Han Shin, 2005. "Firm Value and Geographic Competitive Advantage: Evidence from the U.S. Pharmaceutical Industry," The Journal of Business, University of Chicago Press, vol. 78(6), pages 2465-2495, November.
    34. Robinson, Kenneth Charles, 1999. "An examination of the influence of industry structure on eight alternative measures of new venture performance for high potential independent new ventures," Journal of Business Venturing, Elsevier, vol. 14(2), pages 165-187, March.
    35. Scott Shane & Daniel Cable, 2002. "Network Ties, Reputation, and the Financing of New Ventures," Management Science, INFORMS, vol. 48(3), pages 364-381, March.
    36. Kent Eriksson & Jan Johanson & Anders Majkgård & D Deo Sharma, 1997. "Experimental Knowledge and Costs in the Internationalization Process," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(2), pages 337-360, June.
    37. Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 25(1), pages 45-64, March.
    38. Birley, Sue, 1985. "The role of networks in the entrepreneurial process," Journal of Business Venturing, Elsevier, vol. 1(1), pages 107-117.
    39. Almeida, Paul & Dokko, Gina & Rosenkopf, Lori, 2003. "Startup size and the mechanisms of external learning: increasing opportunity and decreasing ability?," Research Policy, Elsevier, vol. 32(2), pages 301-315, February.
    40. Hara, George & Kanai, Toshihiro, 1994. "Entrepreneurial networks across oceans to promote international strategic alliances for small businesses," Journal of Business Venturing, Elsevier, vol. 9(6), pages 489-507, November.
    41. Stephanie A Fernhaber & Brett Anitra Gilbert & Patricia P McDougall, 2008. "International entrepreneurship and geographic location: an empirical examination of new venture internationalization," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 267-290, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    2. Stephanie A. Fernhaber & Patricia P. McDougall-Covin, 2009. "Venture Capitalists as Catalysts to New Venture Internationalization: The Impact of Their Knowledge and Reputation Resources," Entrepreneurship Theory and Practice, , vol. 33(1), pages 277-295, January.
    3. Lindstrand, Angelika & Hånell, Sara Melén, 2017. "International and market-specific social capital effects on international opportunity exploitation in the internationalization process," Journal of World Business, Elsevier, vol. 52(5), pages 653-663.
    4. Ripollés, Maria & Blesa, Andreu, 2012. "International new ventures as “small multinationals”: The importance of marketing capabilities," Journal of World Business, Elsevier, vol. 47(2), pages 277-287.
    5. 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.
    6. Bunz, Thorsten & Casulli, Lucrezia & Jones, Marian V & Bausch, Andreas, 2017. "The dynamics of experiential learning: Microprocesses and adaptation in a professional service INV," International Business Review, Elsevier, vol. 26(2), pages 225-238.
    7. Li, Haiyan, 2020. "Role of overseas ethnic and non-ethnic ties and firm activity in the home country in the internationalization of returnee entrepreneurial firms," Journal of International Management, Elsevier, vol. 26(1).
    8. Stephanie A. Fernhaber & Dan Li, 2010. "The Impact of Interorganizational Imitation on New Venture International Entry and Performance," Entrepreneurship Theory and Practice, , vol. 34(1), pages 1-30, January.
    9. 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.
    10. Milanov, Hana & Fernhaber, Stephanie A., 2014. "When do domestic alliances help ventures abroad? Direct and moderating effects from a learning perspective," Journal of Business Venturing, Elsevier, vol. 29(3), pages 377-391.
    11. Diego Useche & Ernest Miguelez & Francesco Lissoni, 2019. "Highly skilled and well connected: Migrant inventors in cross-border M&As," Post-Print halshs-02024499, HAL.
    12. Freeman, Susan & Hutchings, Kate & Lazaris, Miria & Zyngier, Suzanne, 2010. "A model of rapid knowledge development: The smaller born-global firm," International Business Review, Elsevier, vol. 19(1), pages 70-84, February.
    13. Vissak, Tiia & Francioni, Barbara & Freeman, Susan, 2020. "Foreign market entries, exits and re-entries: The role of knowledge, network relationships and decision-making logic," International Business Review, Elsevier, vol. 29(1).
    14. Paul, Justin & Parthasarathy, Sundar & Gupta, Parul, 2017. "Exporting challenges of SMEs: A review and future research agenda," Journal of World Business, Elsevier, vol. 52(3), pages 327-342.
    15. Sandberg, Susanne, 2014. "Experiential knowledge antecedents of the SME network node configuration in emerging market business networks," International Business Review, Elsevier, vol. 23(1), pages 20-29.
    16. Sandberg, Susanne & Sui, Sui & Baum, Matthias, 2019. "Effects of prior market experiences and firm-specific resources on developed economy SMEs' export exit from emerging markets: Complementary or compensatory?," Journal of Business Research, Elsevier, vol. 98(C), pages 489-502.
    17. Diego Useche & Ernest Miguelez & Francesco Lissoni, 2020. "Highly skilled and well connected: Migrant inventors in cross-border M&As," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(5), pages 737-763, July.
    18. Stephanie A. Fernhaber & Patricia P. McDougall & Benjamin M. Oviatt, 2007. "Exploring the Role of Industry Structure in New Venture Internationalization," Entrepreneurship Theory and Practice, , vol. 31(4), pages 517-542, July.
    19. Symeonidou, Noni & Bruneel, Johan & Autio, Erkko, 2017. "Commercialization strategy and internationalization outcomes in technology-based new ventures," Journal of Business Venturing, Elsevier, vol. 32(3), pages 302-317.
    20. Montoro-Sanchez, Angeles & Diez-Vial, Isabel & Belso-Martinez, Jose Antonio, 2018. "The evolution of the domestic network configuration as a driver of international relationships in SMEs," International Business Review, Elsevier, vol. 27(4), pages 727-736.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbvent:v:28:y:2013:i:2:p:316-334. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Nithya Sathishkumar). General contact details of provider: http://www.elsevier.com/locate/jbusvent .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.