IDEAS home Printed from https://ideas.repec.org/p/zbw/zewdip/5407.html
   My bibliography  Save this paper

Timing of international market entry of UK and German high-tech start-ups

Author

Listed:
  • Bürgel, Oliver
  • Fier, Andreas
  • Licht, Georg
  • Murray, Gordon

Abstract

We examine the impact of technological product advantages, prior international experience of the management, firm size and age, country differences, and sunk costs as determinants of the timing of international market entry. The timing of internationalisation is analysed using ?event history analysis? for 600 British and German start-up companies in high-technology industries. The results indicate that the incidence of internationalization increases over time. For the majority of new firms the question is not whether the firm will internationalize but when. The analyses indicated that a high commitment to R&D fosters rapid internationalization. The involvement of founder managers who are internationally experienced increases the speed of foreign market activity. Working against rapid internationalization was a high level of product customization. The findings suggest that timing of internationalization is a dynamic process which is influenced by initial human capital endowment, technological advantages, and learning from of day to day activities.

Suggested Citation

  • Bürgel, Oliver & Fier, Andreas & Licht, Georg & Murray, Gordon, 2001. "Timing of international market entry of UK and German high-tech start-ups," ZEW Discussion Papers 01-51, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  • Handle: RePEc:zbw:zewdip:5407
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/24472/1/dp0151.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Mata, Jose & Portugal, Pedro, 1994. "Life Duration of New Firms," Journal of Industrial Economics, Wiley Blackwell, vol. 42(3), pages 227-245, September.
    2. Kiefer, Nicholas M, 1988. "Economic Duration Data and Hazard Functions," Journal of Economic Literature, American Economic Association, vol. 26(2), pages 646-679, June.
    3. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 620-638, June.
    4. Benjamin Tan & Ilan Vertinsky, 1996. "Foreign Direct Investment by Japanese Electronics Firms in the United States and Canada: Modelling the Timing of Entry," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 655-681, December.
    5. Pietra Rivoli & Eugene Salorio, 1996. "Foreign Direct Investment and Investment under Uncertainty," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(2), pages 335-357, June.
    6. Pennings, Enrico & Sleuwaegen, Leo, 2000. "The Choice and Timing of Foreign Market Entry under Uncertainty," CEPR Discussion Papers 2470, C.E.P.R. Discussion Papers.
    7. Bürgel, Oliver & Fier, Andreas & Licht, Georg & Murray, Gordon & Nerlinger, Eric A., 1998. "The internationalisation of British and German start-up companies in high-technology industries," ZEW Discussion Papers 98-34, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    start-ups; high-technology industries; internationalisation;

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

    Statistics

    Access and download statistics

    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:zbw:zewdip:5407. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (ZBW - German National Library of Economics). General contact details of provider: http://edirc.repec.org/data/zemande.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.