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Drivers and strategies of international new ventures from a Central European transition economy

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  • Nowinski, Witold
  • Rialp, Alex

Abstract

This paper contributes to SME internationalization theory by offering region-specific propositions on early internationalization of Central and Eastern European (CEE) firms. We suggest that special treatment of international new ventures from CEE transition economies is justified due to constraints faced by their founders, particularly not only limited financial resources but also relatively low human and social capital. We propose that some of the region-specific drivers which contribute to early internationalization involve domestic market entry barriers and arbitrage opportunities related to the higher purchasing power of consumers from developed economies. Additionally, we find that in order to overcome resource limitations, CEE international new ventures apply effectuation and bricolage to exploit controlled resources and flexibly adapt to the market situation.

Suggested Citation

  • Nowinski, Witold & Rialp, Alex, 2013. "Drivers and strategies of international new ventures from a Central European transition economy," Journal of East European Management Studies, Rainer Hampp Verlag, vol. 18(2), pages 191-231.
    • Handle: RePEc:rai:joeems:doi_10.1688/1862-0019_jeems_2013_02_nowinski
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    10. Farhad Uddin Ahmed & Louis Brennan, 2019. "The impact of Founder’s human capital on firms’ extent of early internationalisation: Evidence from a least-developed country," Asia Pacific Journal of Management, Springer, vol. 36(3), pages 615-659, September.
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    15. Bystrova, Y. & Shirokova, G., 2015. "Organizational changes and firm performance: Evidence from Russian new ventures," Working Papers 6417, Graduate School of Management, St. Petersburg State University.
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    17. 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.
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    20. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    21. Elena-Mădălina Vătămănescu & Elena-Alexandra Gorgos & Alexandru Mihai Ghigiu & Monica Pătruț, 2019. "Bridging Intellectual Capital and SMEs Internationalization through the Lens of Sustainable Competitive Advantage: A Systematic Literature Review," Sustainability, MDPI, vol. 11(9), pages 1-22, April.
    22. Ikemefuna Allen, 2016. "International Entrepreneurship Theory: Past, Present and Way Forward," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(4), pages 93-103.
    23. Ruta Kazlauskaite & Erkko Autio & Modestas Gelbuda & Tadas Šarapovas, 2015. "The Resource-based View and SME Internationalisation: An Emerging Economy Perspective," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(2), pages 53-64.
    24. Antonin Ricard & Abrar Ali Saiyed, 2015. "Attitude Toward Internationalization And Early Internationalization: Comparison of Indian and French SMEs' Decision Makers [Attitude vis-à-vis de l'international et précocité de l'internationalisat," Post-Print hal-01839563, HAL.
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    More about this item

    Keywords

    Internationalization; International new ventures; SMEs; Transition economies; Effectuation; Bricolage;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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