Internationalization: From incremental to born global

During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.,Systematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research.,The authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship.,There is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.

Gradual Internationalization vs Born-Global/International new venture models: A review and research agenda

A letter to the editor is presented in response to the article "Effectuation as Ineffectual? Applying the 3E Theory-Assessment Framework to a Proposed New Theory of Entrepreneurship" by R.J. Arend, H. Sarooghi, and A. Burkemper in volume 40 of the periodical.

Response to Arend, Sarooghi, and Burkemper (2015): Cocreating Effectual Entrepreneurship Research

Entrepreneurs rely on different decision-making logics when starting new ventures, including causal and effectual reasoning. Extant research suggests that venture performance is positively associated with both causal business planning and effectual action-orientation, but studies have not yet tested the synergistic potential of these two logics. We contribute to the debate on entrepreneurial decision making by exploring the interrelationship between causation and effectuation, detailing their main and interactive effects on venture performance. Using survey data collected on 1,453 entrepreneurs residing in 25 countries, we find that ventures benefit from using these two entrepreneurial logics in tandem.

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Get It Together! Synergistic Effects of Causal and Effectual Decision-Making Logics on Venture Performance

Entrepreneurial marketing of international high-tech business-to-business new ventures: A decision-making process perspective

This paper extends current understanding on international growth process of born global firms from the perspective of strategic decision-making. The data were collected from three software companies in Finland, Ireland and Israel both in real-time and retrospectively, and data triangulation was employed to increase the validity of the findings. With a longitudinal approach, we captured the dynamics of the post-entry international growth process and the critical events that act as decision-making triggers. The decision-making of born global firms seems to be characterised by alternating periods of causation- and effectuation-based logics. Triggers for amending the logic include, for example, change of key persons and the search for external funding. Co-existence of the two decision-making logics is possible, due to different degrees of uncertainty in market and technology or multiple decision-makers involved. The contribution of the study is threefold: first, it addresses gaps in international entrepreneurship research by describing how born global firms make strategic decisions and who are involved in the decision-making. Second, it identifies critical incidents which trigger a change in the decision-making process of a born global firm. Third, it provides alternative insights to why decision-making logic may change or why two decision-making logics may co-exist.

Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies

Re-examining the link between fairness and commitment in buyer-supplier relationships

Social Ties, Bukharian Jewish Diaspora and Entrepreneurship: Narratives from Entrepreneurs

Social ventures represent a new type of organization that aim to create sustainable social value, such as promoting the well-being of communities and their existence is based on developing solutions to tackle complex social problems. Developing a suitable business model for a social venture is crucial because the right model with a sustainable value offering in its core can support the venture and direct it toward self-sustainability and competitiveness. Research on social venture business models has been so far limited and particularly innovation in business models needs more inquiry. Through an in-depth case study, we aim to extend the understanding how business models of social ventures can meet these goals and how the business model elements interact with each other. The study findings indicate that opportunity recognition which is followed by innovative resource mobilization and integration can turn into a well-functioning business-model that serves the desired ends, creating social value and help to achieve self-sustainability. Furthermore, establishing the right interconnections between the business model elements was found to support the development of an efficient social venture business model.

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Developing Innovative Business Models in Social Ventures

In the current business environment, ethics and responsibility are emphasised as necessary values for successful business. Companies enforce ethical codes of conduct and stress non-harmful actions, expecting that commonly agreed principles will translate into actual business behaviour. Cases like Enron (Sims and Brinkman 2003) and the sub-prime mortgage crisis in the USA (Jennings 2008), the Bangladesh garment industry tragedy (Peck 2013) and unethical supply chain practices in the smart phone industry (Garside 2013) have created awareness of ethical issues and shown that companies can suffer severe reputational and financial damage when their unethical dealings are revealed. When such cases are reported, they often involve a major scandal that seriously impacts not only the company but also the whole industry or even the world economy (Benady 2009; Marriage 2013; Taticchi et al. 2013).

Päivi Jokela

Papers

Strategic Decision-Making of a Born Global: A Comparative Study From Three Small Open Economies

Re-examining the link between fairness and commitment in buyer-supplier relationships

Social Ties, Bukharian Jewish Diaspora and Entrepreneurship: Narratives from Entrepreneurs

Developing Innovative Business Models in Social Ventures

Exploring Ethics in Business Networks: Propositions for Future Research