I am from the electronics industry, have worked for the electronic industry a number of years, always for multinationals. Strategic partnerships appear to help born globals in overcoming resource constraints and their liability of newness and smallness. Strategy-making and environment: The third link. As far as entrepreneurial orientation is concerned, DeClercq et al. The company owners viewed their product as idiosyncratic — linked to the Greek tradition and to orthodox Christian religious beliefs — without identifying alternative product attributes that could be addressed to a wider customer base. Below is some of the evidence found in the firms interviewed: We had the first oil price drop in the mid-80s, about 86, and that was a bit of a wake up call, because suddenly your single marketplace almost evaporated overnight. International Journal of Entrepreneurial Venturing, 1 1 , 57-71.
Thus, the transfer of knowledge is low for tacit knowledge and high for explicit knowledge Grant, 2002. The impact of the external environment on the firm was found to be either constraining or enabling. European Business Review, 21 1 , 17-41. Asia Pacific Journal of Marketing and Logistics, 13 3 , 75-107. Whilst these individuals are undoubtedly invaluable, they are not the only human resources required. The firm learned in the international market and leveraged this knowledge in both its international and domestic activities.
Also, antecedents were not always separable from the actual process of opportunity development. They specifically examine the pre-export phase and its role in the start of internationalization process. Journal of International Business Studies, 9, 93-98. Internationalisation strategies of technology-driven small- and medium-sized enterprises. These are international entrepreneurs, exporters and nonexporters. He also argues that technical knowledge is universal in its geographical coverage whereas market knowledge is location-specific.
There is also ample evidence available concerning the significance of networks as an important resource or capability in successful internationalization. Secondly, in the context of the emergence of academic and policy interest in international new ventures, it provides a useful context and backdrop to new theories that are emerging to challenge conventional wisdom. Organizational learning theory identifies two levels of learning. For the Arabs and Greeks of the diaspora, halva is a product highly linked to both tradition and religious matters; and so the company in this case addressed a market need that already existed, adopting the same marketing strategy as in its domestic market. Research on the growth of the firm builds on path-dependence and organizational imprinting Autio et al.
Growth is defined as the engagement of the firm in foreign business activities, seemingly disregarding other growth potential in the domestic markets. Unpublished , and 2007 Project Report. Although non-exporters demonstrate a stronger association of tolerance to ambiguity with proactivity, in their case this relationship does not affect internationalization. International new venture research places more emphasis on knowledge intensity and unique product knowledge to explain the early and rapid internationalization of new firms. Moreover, Johanson and Vahlne 1977 use the concept of psychic distance between domestic and international markets in order to explain market selection. For company managers, there are many potential benefits from close collaborative interactions with their client base. It would be unwise to examine the growth process of the internationalized firm by only looking at its international activities.
The third Section explores the methodological details of the research, followed by the presentation of the case study findings. Learning is most efficient in areas close to an existing knowledge base Cohen and Levinthal, 1990. Additionally, detailed observation was undertaken involving attendance at meetings related to international activities and internal presentations in order to illuminate aspects of the organizational environments of the case study firms with respect to the investigated theme. This model also includes internal and external attention-evoking factors or triggers, which are: unique competence; excess capacity in the resources of management, marketing, production or finance; fortuitous orders from foreign customers; market opportunities; competition; and government export stimulation measures. Customer-focused product development processes were created to support future growth.
Indeed, Ghoshal 1987 notes that learning is a significant objective for firms pursuing international diversification. The recognition of first time international entrepreneurial opportunities: Evidence from firms in knowledge-based industries. Important developments however are those by Zahra et al. Export marketing: developments and a research agenda. Also, the development of a market-oriented philosophy that placed emphasis on customer needs and dynamics of a particular target audience originated from the contact of the firm with consumers and partners in international markets. However, the internationalization of small companies is by no means a deterministic, or even a homogeneous process.
Considering that greater resource commitment is needed and a higher degree of risk is involved, internationalization of small firms, if possible, should follow a gradual process of incremental steps proposed by the internationalization model Johanson and Vahlne, 1990. Indeed, such firms are assumed to lack bases of influence and endorsement, stable relationships with important external constituents, and legitimacy Stinchcombe, 1965. Journal of International Marketing, 10 3 , 49-72. How can we categorize such mechanisms? In fact, in those cases it is the network that provides the firm with an opportunity for internationalization, with the firm taking an active role at the opportunity exploitation stage. Viewed in this light, the evidence suggests that internationalization can have a major impact on the stock of knowledge of the firm and may materially affect its domestic strategy and operations. The second section provides perspectives on firm growth from the perspectives of strategic management and international business. A theoretical framework is developed which identifies experience- and network-based antecedents and dimensions of the international opportunity concept.