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Untangling the relationship between new venture internationalization and performance

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  • Stephanie Fernhaber

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Abstract

To help untangle the inconsistency in prior performance studies for new venture internationalization, the dynamic capabilities perspective is revisited to consider whether the relationship is more complex than previously assumed. While internationalization requires the reconfiguration of routines and resources, survivability is argued to peak at moderate levels of internationalization where the associated resources and risk is balanced between local and foreign markets. In contrast, sales growth is suggested to peak at either low or high levels of internationalization where a singular market focus and set of capabilities is being exploited. The results confirm that the level of new venture internationalization exhibits an inverted U-shaped relationship with survival, while the opposite U-shaped relationship exists with sales growth. Copyright Springer Science+Business Media New York 2013

Suggested Citation

  • Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
  • Handle: RePEc:kap:jinten:v:11:y:2013:i:3:p:220-242
    DOI: 10.1007/s10843-013-0104-2
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    References listed on IDEAS

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    Cited by:

    1. Tobias Pehrsson & Navid Ghannad & Anders Pehrsson & Tobias Abt & Siyuan Chen & Fabian Erath & Tobias Hammarstig, 2015. "Dynamic capabilities and performance in foreign markets: Developments within international new ventures," Journal of International Entrepreneurship, Springer, vol. 13(1), pages 28-48, March.
    2. repec:spr:manint:v:55:y:2015:i:6:d:10.1007_s11575-015-0255-6 is not listed on IDEAS

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