The evolutionary network process of international entrepreneurial firms

This study discusses the evolution of networks and some of their characteristics during the internationalisation process of International Entrepreneurial Firms (IEFs). After a brief review of the importance of networks in the entrepreneurship and international entrepreneurship literature, a model is presented showing how the network can evolve and play a vital role as a vehicle for starting and growing IEFs. The proposed model lays the foundation for research on enhancing our understanding of the networking and internationalisation of entrepreneurial firms. The model describes how, in the start-up phase of internationalisation, and in order to enter new foreign countries and new international markets, the entrepreneur identifies international opportunities through the 'social' network and, hence, he/she accesses critical resources, including knowledge. In the ongoing phase of internationalisation, the entrepreneurial firm may form an interfirm cooperation. The latter may take the form of strategic alliances or other cooperative strategies; and when the network relations are typically dense, cooperative rather than competitive, an 'interorganisational' network will be created. The paper concludes with plans for some future research and recognises an overlap between the 'interorganisational' and 'social' networks, which together may participate in reducing the cost and risk of internationalisation of IEFs.