Beate Cesinger

Rapidly internationalizing ventures: how definitions can bridge the gap across contexts

Purpose – The purpose of this article is to develop a contextualized definition of the phenomenon of rapidly internationalizing ventures (RIVs) ‐ such as born globals or international new ventures ‐ building upon the commonly noted dimensions of internationalization: speed, degree and scope.Design/methodology/approach – The study builds on a theory informed review of 62 empirical studies on RIVs from the USA and the European Union and an empirical survey among 103 academics in the field of international entrepreneurship.Findings – After specifying the core characteristics of RIVs (speed, degree, and scope of internationalization), it is shown that the discrepancies in definitions result in a dysfunctional fragmentation of empirical results. Thus, research on the phenomenon of RIVs urgently needs contextualized definitions because the three core characteristics are context‐sensitive, and will therefore manifest themselves differently across contexts.Research limitations/implications – The paper contributes...

The alchemy of family enterprises’ internationalisation: dexterous movers or prodigal laggards?

Our empirical study among 112 German firms investigates how psychic distance, cultural distance and relative perceived performance impact the speed of internationalisation among family firms vs. non-family firms. Using partial least squares structural equation modelling, we uncovered two significant findings: family enterprises internationalise significantly slower than non-family enterprises and psychic distance is a distinct internationalisation barrier for family enterprises. Further, active motivation for success remains a driving force, while a phlegmatic pace can be observed once a saturation effect has occurred. Accordingly, firms with a medium level of relative perceived performance approach international markets proactively. Focusing on perceptions of the decision maker in family vs. non-family firms, we offer a nuanced perspective on internationalisation speed. The observed effects indicate that actors’ subjective reality impacts the proactivity of international market entry.

Born Globals : (almost) 20 years of research and still not 'grown up'?

Born Globals, the phenomenon of rapidly internationalising firms is widely accepted and noted in literature. Yet, in review of 51 empirical articles we found disquieting discrepancies in: operationalisation of the phenomenon concerning age of firms surveyed, speed, intensity, and scope of their internationalisation process. Based upon our analysis and results we invoke new directions for further research.

The role of entrepreneurial risks in the intercultural context: a study of MBA students in four nations

One of the main roots of international entrepreneurship is concerned with international and cross-cultural effects of the entrepreneurial process. This survey of 645 MBA students from different countries and cultural backgrounds examines cultural effects on entrepreneurship by exploring entrepreneurial intention and associated risks. In particular, we research the effects of (a) power distance and (b) individualism on entrepreneurial intentions across different nations. Our results reveal: first, power distance and individualism influence the intent to found and the intent to found in a team; second, different risks associated with entrepreneurship influence the relationship between cultural values and the general entrepreneurial intention, as well as the intention to found in a team. Insufficient internal resources, lack of external resources and the entrepreneurial context moderate the relationship between culture and the founding intent in several and diverse directions. Thus, culture plays a role in entrepreneurship while the relationship between power distance and individualism is complex.

Opening the black box: a comparative case study on international prospectors

Previous research on international new ventures focused on early outward-driven internationalisation. In contrast, the present study focuses upon international prospectors: international new ventures – founded in Germany or Switzerland – which are international from day one, source from Southeast Asia, and sell on the domestic market. Applying a comparative case-study design, our results indicate that – compared to outward-driven early internationalisers, international prospectors are rather low-tech. Similar to outward-driven international new ventures, founders of international prospectors are internationally experienced and cross-culturally educated. Moreover, intimate knowledge of the sourcing country has made them discover and transfer the business opportunity to the domestic market. In addition, we found that sourcing is not a dead end. Rather, international prospectors rapidly engage in exporting as well – making them in turn thoroughly international firms.

An investigation into organisational democracy in new ventures

Organisational democracy resembles around structural and procedural aspects regarding decision-making, leadership, organisational structure and communication. Primarily, it is thought as an approach in which individual and organisational goals are balanced. Individuals primarily engage in entrepreneurial activity because of autonomy and flexibility; i.e., working in less mechanistic structures. Founders thereafter can create their organisational structure according to their individual values, goals and personality. Particularly in dynamic and more instable business environments organisational democracy appears to be a source of competitive advantage and positive performance. Our research question therefore asks: do entrepreneurs of new ventures follow principles of organisational democracy? Results from a comparative case-study among seven German high-tech start-ups reveal three distinct forms of ventures on the mechanistic-democratic continuum regarding leadership, decision-making, organisational structure and communication. This means that entrepreneurs do not necessarily impede democratic principles in their ventures but rather chose their strategic route in accordance with their self-perception as an entrepreneur, their growth aspirations and product/service offered.