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Born local: toward a theory of new venture’s choice of internationalization

  • Zoltan Acs

    ()

  • Siri Terjesen

    ()

This manuscript offers a theory regarding two distinct avenues to new venture internationalization: a direct path described in much of the extant literature and an intermediated one in which new ventures and multinational firms create symbiotic relationships in order to expand internationally. The term “born local”, as opposed to “born global”, describes how new ventures are created from knowledge spillovers and other resources in a geographically bounded environment. The theory suggests that the greater the number of value chain activities and the greater the number of countries involved, the more likely that the new venture will pursue the intermediated mode of internationalization. We suggest that new ventures frequently specialize and use existing MNEs as conduits for international expansion; however the greater the perceived ex-post costs of protecting intellectual property, transaction costs, and extraction costs related to hold-up, agency, and monopoly rents, the more likely the new venture will pursue a direct mode of internationalization. Copyright Springer Science+Business Media, LLC. 2013

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File URL: http://hdl.handle.net/10.1007/s11187-012-9446-8
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Article provided by Springer in its journal Small Business Economics.

Volume (Year): 41 (2013)
Issue (Month): 3 (October)
Pages: 521-535

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Handle: RePEc:kap:sbusec:v:41:y:2013:i:3:p:521-535
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=100338

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  1. Shaker A Zahra, 2005. "A theory of international new ventures: a decade of research," Journal of International Business Studies, Palgrave Macmillan, vol. 36(1), pages 20-28, January.
  2. Jolanda Hessels & Siri Terjesen, 2010. "Resource dependency and institutional theory perspectives on direct and indirect export choices," Small Business Economics, Springer, vol. 34(2), pages 203-220, February.
  3. Zoltan J. Acs & David B. Audretsch & Pontus Braunerhjelm & Bo Carlsson, 2005. "The Knowledge Spillover Theory of Entrepreneurship," Papers on Entrepreneurship, Growth and Public Policy 2005-27, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
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  8. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
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  13. Erkko Autio & Zoltan Acs, 2010. "Intellectual Property Protection and the Formation of Entrepreneurial Growth Aspirations," Global Entrepreneurship Monitor Working Paper Series 1104, Global Entrepreneurship Research Association, revised Jul 2010.
  14. Mike W Peng & Anne S York, 2001. "Behind Intermediary Performance in Export Trade: Transactions, Agents, and Resources," Journal of International Business Studies, Palgrave Macmillan, vol. 32(2), pages 327-346, June.
  15. Kuemmerle, Walter, 2002. "Home base and knowledge management in international ventures," Journal of Business Venturing, Elsevier, vol. 17(2), pages 99-122, March.
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