Christian Schwens

The Moderating Impact of Informal Institutional Distance and Formal Institutional Risk on SME Entry Mode Choice

Considerable research has explored international mode choices. However, results regarding the direct influence of the host country institutional context on entry mode choice remain rather inconclusive with positive, negative, and mixed empirical findings. This study examines informal institutional distance and formal institutional risk as moderators on the relationship between frequently examined decision-making criteria and the entry mode decision of small and medium-sized enterprises (SMEs). We demonstrate that the influence of international experience, proprietary know-how, and strategic importance on SME mode choice is contingent on the institutional context of the host country. Hypotheses are tested on a sample of 227 German SMEs. Our empirical results support our theoretical predictions, which forge a link between institutional and SME entry mode literature.

A Typology of International New Ventures: Empirical Evidence from High‐Technology Industries

We examine determinants of different types of International New Ventures (INVs), namely Export Start‐up, Geographically Focused Start‐up, Multinational Trader, and Global Start‐up. Whereas this typology of INVs has been widely accepted in the literature, empirical testing of the determinants of INV types is largely missing. Our arguments build on the International New Venture Theory (INVT). Hypotheses generated from our framework are tested on 195 German high‐tech enterprises. Results show that growth orientation, prior international experience, knowledge intensity, product differentiation, and learning orientation distinguish significantly between the different INV types.

International as opposed to domestic new venturing: The moderating role of perceived barriers to internationalization

This article examines how firm-based and founder-based determinants of international (as opposed to domestic) new venturing are moderated by perceived barriers to internationalization. In order to test the theoretically derived hypotheses, this article applies event history analysis to a sample of technology firms. The results show that the influence of growth orientation, international network contacts and knowledge intensity on international new venturing varies depending on the perceived financial barriers. Thus, this article provides a contingent perspective within the research field and a contrast to the quite categorical discussion regarding determinants of international new venturing and barriers to internationalization.

'Of Course I Can': The Effect of CEO Overconfidence on Entrepreneurially Oriented Firms

Guided by the upper echelons theory, this research examines the relationship between chief executive officer (CEO) overconfidence and a firms entrepreneurial orientation (EO). The study theoretically establishes and empirically validates an increasing effect of CEO overconfidence on EO, although at a decreasing rate. Empirical results are based on a multisource secondary data set for high–tech S&P 500 firms from 2005 to 2007. Findings further indicate that the proposed relationship between CEO overconfidence and EO is moderated by market dynamism. A theoretically established moderating effect of market concentration could not be validated empirically.

CEO characteristics and SME foreign market entry mode choice

Purpose – Using arguments from the upper echelons perspective this paper aims to examine the impact of CEO characteristics on small and medium-sized enterprises’ (SMEs’) equity foreign market entry mode choice and how these associations are jointly moderated by geographic experience of the firm and host-country political risk. Design/methodology/approach – The empirical analysis draws on data gathered from German SMEs testing triple-interaction effects between CEO’s age, firm tenure and international experience, geographic experience of the firm (organizational level), and host-country political risk (environmental level). Findings – Empirical findings validate that the influence of CEO’s age and firm tenure on SME foreign market entry mode choice varies by managers’ level of managerial discretion (i.e. latitude of action) as determined by the SME’s geographic experience and the level of political risks prevailing in the foreign market. Practical implications – Empirical findings help SME owners and manag...

Which Resources Matter How and Where? A Meta-Analysis on Firms’ Foreign Establishment Mode Choice

Firm resources play an important role in explaining the foreign establishment mode choice. However, a theoretical framework that simultaneously a) differentiates between heterogeneous types of resources, b) provides a rationale that consistently explains how firms adapt their establishment mode choice to their resource base, and c) reflects on contextual factors that intervene in the consistency of the direct relationships is largely missing. The present paper draws on the resource-based view (RBV) to develop such a framework. More specifically, we study the effect of knowledge-based and experience-based resources on a firms establishment mode choice and the moderating impact of cultural distance on these relationships. We validate our theoretical framework by a meta-analysis (integrating 31 studies with 13,559 establishment mode choices) and find that knowledge-based resources enhance a firms propensity for greenfield investments, while experience-based resources more likely lead to acquisitions. Further, cultural distance increases knowledge-intensive firms’ preference for greenfield investments.

The Role of Prior Entrepreneurial Exposure in the Entrepreneurial Process: A Review and Future Research Implications

Despite considerable research, the current state regarding how and in which context prior entrepreneurial exposure impacts the entrepreneurial process is unclear. The present papers goal is to systemize and discuss extant quantitative‐empirical research on the role of prior entrepreneurial exposure in the entrepreneurial process to clarify the current state, identify research gaps, and offer future research directions. Results from the systematic literature review of 69 quantitative‐empirical journal articles suggest that prior findings are ambiguous and theoretical shortcomings exist. We contribute to the literature by clarifying the current state and by offering directions for entrepreneurship research and practitioners promoting entrepreneurial activity.

Foreign Direct Investments and Domestic Employment of German SMEs: The Moderating Effect of Owner Management

Despite considerable research, the relationship between foreign direct investment (FDI) and domestic employment is still inconclusive. The present paper contributes to extant research by providing differentiated findings on the FDI and domestic employment relationship. We examine how horizontal and vertical FDI impact domestic employment and how the effects are contingent on the ownership structure of the firm. Testing hypotheses on a dataset of 1,079 erman small and medium‐sized enterprises (SMEs) shows that horizontal FDI has a positive influence, whereas vertical FDI has a negative influence on domestic employment. Furthermore, domestic downsizing due to the establishment of foreign production subsidiaries is less severe in owner‐managed SMEs.

Impact of Prior Entrepreneurial Exposure on Entrepreneurial Intention — Cross-Cultural Evidence

The present paper examines how the influence of prior entrepreneurial exposure on entrepreneurial intention is contingent on national culture. Applying the Theory of Planned Behavior, we test our hypotheses on a dataset of 253 students from Germany and Ethiopia. We find evidence that individuals from individualistic societies preferably draw on their own entrepreneurial experience in establishing their entrepreneurial intention. In contrast, individuals from collectivistic cultures mostly prefer in-group-referenced resources and knowledge provided by entrepreneurial role models. Our study contributes to resolving previously inconclusive findings regarding the relationship between prior entrepreneurial exposure and entrepreneurial intention by considering culture as boundary condition.

Entry Learning, Age at Internationalization, and Foreign-Venture Performance of Young Technology Firms

The central question that we address is how young technology firms (YTFs) learn about foreign markets when they venture abroad for the very first time. Drawing on learning theory, we develop and test a model for the entry learning and foreign-ven-ture performance of YTF. Our empirical results show that prior foreign market analysis leads firms to postpone the first internationalization, but network learning and imitation lead to earlier international venturing. Further, our results show that the earlier technology firms venture into foreign markets, the higher the foreign-venture performance of the firm.