IDEAS home Printed from https://ideas.repec.org/a/spr/manint/v55y2015i4d10.1007_s11575-015-0246-7.html
   My bibliography  Save this article

The Co-evolution of Learning and Internationalization Strategy in International New Ventures

Author

Listed:
  • Juan M. Pellegrino

    (Christchurch Polytechnic Institute of Technology)

  • Rod B. McNaughton

    (The University of Auckland Business School)

Abstract

In this paper, we examine the co-evolution of learning and internationalization strategy in international new ventures (INVs). Many researchers have suggested that in contrast to the reliance on experiential learning by firms that internationalize incrementally, firms that internationalize rapidly use alternatives such as congenital and vicarious learning. However, few empirical studies explicitly examine how the use of learning processes in INVs evolves. We used retrospective longitudinal analysis to explore the learning processes of four New Zealand-based INVs, and found that their dominant learning mode and foci of learning changed as internationalization increased. Around the time of founding, congenital learning dominated, but as the firms began to internationalize, they relied more on experiential, vicarious, searching and noticing learning processes. The focus of their learning also shifted from product knowledge to knowledge about foreign markets and the internationalization process. In the later stages of their internationalization, experiential learning increased in importance, as did other resource-intensive learning processes such as grafting by hiring locals or acquiring foreign companies. We conclude that the learning processes used by INVs co-evolve with their internationalization, and are more rapid and less systematic than is implied by traditional models of the internationalization process, with substitutes for experiential learning dominating early in the process.

Suggested Citation

  • Juan M. Pellegrino & Rod B. McNaughton, 2015. "The Co-evolution of Learning and Internationalization Strategy in International New Ventures," Management International Review, Springer, vol. 55(4), pages 457-483, August.
  • Handle: RePEc:spr:manint:v:55:y:2015:i:4:d:10.1007_s11575-015-0246-7
    DOI: 10.1007/s11575-015-0246-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11575-015-0246-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s11575-015-0246-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    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. 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.
    2. Yli-Renko, H. & Autio, E. & Tontti, V., 2002. "Social capital, knowledge, and the international growth of technology-based new firms," International Business Review, Elsevier, vol. 11(3), pages 279-304, June.
    3. Gabrielsson, Mika & Kirpalani, V.H. Manek & Dimitratos, Pavlos & Solberg, Carl Arthur & Zucchella, Antonella, 2008. "Born globals: Propositions to help advance the theory," International Business Review, Elsevier, vol. 17(4), pages 385-401, August.
    4. Michailova, Snejina & Wilson, Heather I.M., 2008. "Small firm internationalization through experiential learning: The moderating role of socialization tactics," Journal of World Business, Elsevier, vol. 43(2), pages 243-254, March.
    5. Benjamin M. Oviatt & Patricia P. McDougall, 2005. "Defining International Entrepreneurship and Modeling the Speed of Internationalization," Entrepreneurship Theory and Practice, , vol. 29(5), pages 537-553, September.
    6. Saarenketo, Sami & Puumalainen, Kaisu & Kuivalainen, Olli & Kylaheiko, Kalevi, 2004. "Dynamic knowledge-related learning processes in internationalizing high-tech SMEs," International Journal of Production Economics, Elsevier, vol. 89(3), pages 363-378, June.
    7. Nordman, Emilia Rovira & Melén, Sara, 2008. "The impact of different kinds of knowledge for the internationalization process of Born Globals in the biotech business," Journal of World Business, Elsevier, vol. 43(2), pages 171-185, March.
    8. 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.
    9. Hsu, Chin-Chun & Pereira, Arun, 2008. "Internationalization and performance: The moderating effects of organizational learning," Omega, Elsevier, vol. 36(2), pages 188-205, April.
    10. George P. Huber, 1991. "Organizational Learning: The Contributing Processes and the Literatures," Organization Science, INFORMS, vol. 2(1), pages 88-115, February.
    11. Forsgren, M., 2002. "The concept of learning in the Uppsala internationalization process model: a critical review," International Business Review, Elsevier, vol. 11(3), pages 257-277, June.
    12. Andrew M. Pettigrew, 1990. "Longitudinal Field Research on Change: Theory and Practice," Organization Science, INFORMS, vol. 1(3), pages 267-292, August.
    13. Schwens, Christian & Kabst, Ruediger, 2009. "How early opposed to late internationalizers learn: Experience of others and paradigms of interpretation," International Business Review, Elsevier, vol. 18(5), pages 509-522, October.
    14. Shameen Prashantham & Charles Dhanaraj, 2010. "The Dynamic Influence of Social Capital on the International Growth of New Ventures," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 967-994, September.
    15. Kuemmerle, Walter, 2002. "Home base and knowledge management in international ventures," Journal of Business Venturing, Elsevier, vol. 17(2), pages 99-122, March.
    16. Hewerdine, Lisa & Welch, Catherine, 2013. "Are international new ventures really new? A process study of organizational emergence and internationalization," Journal of World Business, Elsevier, vol. 48(4), pages 466-477.
    17. Lars Bengtsson, 2004. "Explaining born globals: an organisational learning perspective on the internationalisation process," International Journal of Globalisation and Small Business, Inderscience Enterprises Ltd, vol. 1(1), pages 28-41.
    18. George P. Huber & Danial J. Power, 1985. "Retrospective reports of strategic‐level managers: Guidelines for increasing their accuracy," Strategic Management Journal, Wiley Blackwell, vol. 6(2), pages 171-180, April.
    19. Loane, S. & Bell, J.D. & McNaughton, R., 2007. "A cross-national study on the impact of management teams on the rapid internationalization of small firms," Journal of World Business, Elsevier, vol. 42(4), pages 489-504, December.
    20. Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, vol. 6(6), pages 561-583, December.
    21. 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.
    22. Bell, Jim & McNaughton, Rod & Young, Stephen, 2001. "'Born-again global' firms: An extension to the 'born global' phenomenon," Journal of International Management, Elsevier, vol. 7(3), pages 173-189.
    23. Susan Freeman & Kate Hutchings & Sylvie Chetty, 2012. "Born-Globals and Culturally Proximate Markets," Management International Review, Springer, vol. 52(3), pages 425-460, June.
    24. Kent Eriksson & Jan Johanson & Anders Majkgård & D. Deo Sharma, 2000. "Effect of Variation on Knowledge Accumulation in the Internationalization Process," International Studies of Management & Organization, Taylor & Francis Journals, vol. 30(1), pages 26-44, March.
    25. 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.
    26. Benjamin M Oviatt & Patricia P McDougall, 2005. "The internationalization of entrepreneurship," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(1), pages 2-8, January.
    27. Andrew H. van de Ven & George P. Huber, 1990. "Longitudinal Field Research Methods for Studying Processes of Organizational Change," Organization Science, INFORMS, vol. 1(3), pages 213-219, August.
    28. 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.
    29. Zhou, Lianxi, 2007. "The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization," Journal of World Business, Elsevier, vol. 42(3), pages 281-293, September.
    30. Blomstermo, Anders & Eriksson, Kent & Lindstrand, Angelika & Sharma, D. Deo, 2004. "The perceived usefulness of network experiential knowledge in the internationalizing firm," Journal of International Management, Elsevier, vol. 10(3), pages 355-373.
    31. Christian Schwens & Ruediger Kabst, 2009. "Early internationalization: A transaction cost economics and structural embeddedness perspective," Journal of International Entrepreneurship, Springer, vol. 7(4), pages 323-340, December.
    32. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pushyarag Puthusserry & Zaheer Khan & Gary Knight & Kristel Miller, 2020. "How Do Rapidly Internationalizing SMEs Learn? Exploring the Link Between Network Relationships, Learning Approaches and Post-entry Growth of Rapidly Internationalizing SMEs from Emerging Markets," Management International Review, Springer, vol. 60(4), pages 515-542, August.
    2. Renato Cotta Mello & Angela Rocha & Jorge Ferreira Silva, 2019. "The long-term trajectory of international new ventures: A longitudinal study of software developers," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 144-171, June.
    3. Jan Abrahamsson & Håkan Boter & Vladimir Vanyushyn, 2019. "Business model innovation of international new ventures: An empirical study in a Swedish context," Journal of International Entrepreneurship, Springer, vol. 17(1), pages 75-102, March.
    4. Tobias Kollmann & Simon Hensellek & Philipp Benedikt Jung & Katharina de Cruppe, 2023. "How bricoleurs go international: a European cross-country study considering the moderating role of governmental entrepreneurship support programs," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1126-1159, June.
    5. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    6. 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.
    7. Angélique Breuillot & Rachel Bocquet & Véronique Favre-Bonté, 2022. "Navigating the internationalization process: Strategic resources for early internationalizing firms," Journal of International Entrepreneurship, Springer, vol. 20(2), pages 282-315, June.
    8. Elena Pawęta, 2015. "Entrepreneur-related constructs explaining the emergence of born global firms: A Systematic Literature Review," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 3(4), pages 11-36.
    9. Li, Wen Helena & Guo, Bin & De Sisto, Marco, 2021. "Untangling the commonalities and differences between domestic cross-regional experience and international experience in shaping speed of internationalization," Journal of International Management, Elsevier, vol. 27(2).
    10. Joan Freixanet & Ryan Federo, 2022. "When Born Globals Grow Up: A Review and Agenda for Research on the Performance of Maturing Early Internationalizers," Management International Review, Springer, vol. 62(6), pages 817-857, December.
    11. Fletcher, Margaret & Harris, Simon & Richey, Robert Glenn, 2021. "Retrospective and prospective learning: Accelerating the internationalization process," Journal of World Business, Elsevier, vol. 56(3).
    12. Angélique Breuillot, 2021. "Exploring the Role of Diversity Management During Early Internationalizing Firms’ Internationalization Process," Management International Review, Springer, vol. 61(2), pages 125-156, April.
    13. Gornostaeva, Galina, 2023. "The development of digital commerce in the fashion industry: The typology of emerging designers in London," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).
    14. Doornich, June Borge, 2018. "Managerial learning from social capital during internationalization," International Business Review, Elsevier, vol. 27(4), pages 877-892.
    15. Tuomisalo, Teemu & Leppäaho, Tanja, 2019. "Learning in international new ventures: A systematic review," International Business Review, Elsevier, vol. 28(3), pages 463-481.
    16. Jeoung Yul Lee & Alfredo Jiménez & Timothy M. Devinney, 2020. "Learning in SME Internationalization: A New Perspective on Learning From Success versus Failure," Management International Review, Springer, vol. 60(4), pages 485-513, August.
    17. Emre Yildiz, H. & Morgulis-Yakushev, Sergey & Holm, Ulf & Eriksson, Mikael, 2022. "How do the source and context of experiential knowledge affect firms’ degree of internationalization?," Journal of Business Research, Elsevier, vol. 153(C), pages 378-391.
    18. Kahiya, Eldrede T., 2020. "Context in international business: Entrepreneurial internationalization from a distant small open economy," International Business Review, Elsevier, vol. 29(1).
    19. María-Ángeles Rastrollo-Horrillo & Julia Martín-Armario, 2019. "Organisational barriers to nascent born-global growth: Learning from the inside," Journal of International Entrepreneurship, Springer, vol. 17(3), pages 454-473, September.
    20. Danik Lidia & Kowalik Izabela, 2020. "Network knowledge gathering of international new ventures, approaches, and preconditions," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(3), pages 255-274, September.
    21. Dillon, Sarah M. & Glavas, Charmaine & Mathews, Shane, 2020. "Digitally immersive, international entrepreneurial experiences," International Business Review, Elsevier, vol. 29(6).
    22. Nelaeva, Alena & Nilssen, Frode, 2022. "Contrasting knowledge development for internationalization among emerging and advanced economy firms: A review and future research," Journal of Business Research, Elsevier, vol. 139(C), pages 232-256.

    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. 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.
    2. Fletcher, Margaret & Harris, Simon & Richey, Robert Glenn, 2021. "Retrospective and prospective learning: Accelerating the internationalization process," Journal of World Business, Elsevier, vol. 56(3).
    3. Lindstrand, Angelika & Melén, Sara & Nordman, Emilia Rovira, 2011. "Turning social capital into business: A study of the internationalization of biotech SMEs," International Business Review, Elsevier, vol. 20(2), pages 194-212, April.
    4. Rubina Romanello & Maria Chiarvesio, 2019. "Early internationalizing firms: 2004–2018," Journal of International Entrepreneurship, Springer, vol. 17(2), pages 172-219, June.
    5. Magnani, Giovanna & Zucchella, Antonella, 2021. "Portfolios of learning in entrepreneurial internationalisation," Journal of International Management, Elsevier, vol. 27(2).
    6. Dzikowski, Piotr, 2018. "A bibliometric analysis of born global firms," Journal of Business Research, Elsevier, vol. 85(C), pages 281-294.
    7. 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).
    8. Schwens, Christian & Kabst, Ruediger, 2011. "Internationalization of young technology firms: A complementary perspective on antecedents of foreign market familiarity," International Business Review, Elsevier, vol. 20(1), pages 60-74, February.
    9. 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.
    10. Knight, Gary A. & Liesch, Peter W., 2016. "Internationalization: From incremental to born global," Journal of World Business, Elsevier, vol. 51(1), pages 93-102.
    11. Niklas Åkerman, 2015. "International opportunity realization in firm internationalization: Non-linear effects of market-specific knowledge and internationalization knowledge," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 242-259, September.
    12. Anika Laperrière & Martine Spence, 2015. "Enacting international opportunities: The role of organizational learning in knowledge-intensive business services," Journal of International Entrepreneurship, Springer, vol. 13(3), pages 212-241, September.
    13. Hernández, Virginia & Nieto, María Jesús, 2016. "Inward–outward connections and their impact on firm growth," International Business Review, Elsevier, vol. 25(1), pages 296-306.
    14. Farhad Uddin Ahmed & Louis Brennan, 2021. "A review of methodological diversity within the domain of international entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 256-299, June.
    15. Eric W. K. Tsang, 2020. "Family firms and internationalization: An organizational learning perspective," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 205-225, March.
    16. Wu, Aiqi & Voss, Hinrich, 2015. "When does absorptive capacity matter for international performance of firms? Evidence from China," International Business Review, Elsevier, vol. 24(2), pages 344-351.
    17. 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.
    18. 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.
    19. Francisco García-Lillo & Enrique Claver-Cortés & Bartolomé Marco-Lajara & Mercedes Úbeda-García, 2017. "Mapping the Intellectual Structure of Research on ‘Born Global’ Firms and INVs: A Citation/Co-citation Analysis," Management International Review, Springer, vol. 57(4), pages 631-652, August.
    20. Johanson, Martin & Martín Martín, Oscar, 2015. "The incremental expansion of Born Internationals: A comparison of new and old Born Internationals," International Business Review, Elsevier, vol. 24(3), pages 476-496.

    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:spr:manint:v:55:y:2015:i:4:d:10.1007_s11575-015-0246-7. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.