Erkko Autio

A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth

Recent critiques of internationalization process models question the wisdom of delaying internationalization. Internationalizing late allows firms to assemble resources and gain experience but also allows inertia to develop. We resolve this tension by positing that internationalization has differing effects on firm survival and growth. These effects are moderated by organizational age, managerial experience, and resource fungibility. Our framework provides insights into the evolution of capabilities across borders and may be tested and built upon by organization researchers.

Regulatory Burden, Rule of Law, and Entry of Strategic Entrepreneurs: An International Panel Study

Entry into entrepreneurship is a strategic act for individuals who seek an optimal way to exploit their human, social, and financial capital. Trade‐offs associated with this choice are influenced by institutional conditions. We use signalling theory, employment choice theory, and theory on strategic entry to develop hypotheses on the effect of business regulations and rule of law on strategic and non‐strategic entrepreneurial entry. Analysing a six‐year panel of 54 countries, we find lighter burden of regulation associated with a higher rate and relative prevalence of strategic entrepreneurial entry. Rule of law moderates this effect such that regulation has a significant effect on strategic entry only when rule of law is strong. These findings are robust against alternative proxies. Implications are drawn for prospective entrepreneurs, existing organizations, policy, and further research.

International Entrepreneurship and Capability Development-Qualitative Evidence and Future Research Directions

In this article, we explore how new capabilities emerge and solidify in new ventures that are faced with fundamental uncertainty from their environment. To do so, we draw from the organizational and entrepreneurial literature on cognition and capabilities. Using initial qualitative evidence from a multifirm study in the context of new venture internationalization, we develop a cognition–based model of capability emergence in new ventures. Our findings extend the capability development and learning implications of internationalization to the fundamental character of organizing processes in start–ups. Moreover, we derive avenues for future entrepreneurship research on the origins and evolution of capabilities in new ventures.

How culture moulds the effects of self-efficacy and fear of failure on entrepreneurship

We use data from the Global Entrepreneurship Monitor and the Global Leadership and Organizational Behavior Effectiveness study for 42 countries to investigate how the effects of individuals self-efficacy and of fear of failure on entrepreneurial entry are contingent on national cultural practices. Using multi-level methodology, we observe that the positive effect of self-efficacy on entry is moderated by the cultural practices of institutional collectivism and performance orientation. Conversely, the negative effect of fear of failure on entry is moderated by the cultural practices of institutional collectivism and uncertainty avoidance. We discuss the implications for theory and methodological development in culture and entrepreneurship.

Quality Meets Structure: Generalized Reciprocity and Firm-Level Advantage in Strategic Networks

In this paper we extend previous research by combining network structural and network process approaches. Specifically, in a six-year, three-wave study of 41 firms in two strategic networks, we found that the interaction between generalized reciprocity among a focal firms partners and network tie intensity and betweenness centrality improved firm performance. No influences were observed for the interaction involving degree centrality and generalized reciprocity. Our research suggests that managers in strategic networks may need to consider the balance between relationship-extensive and relationship-intensive strategies.

The more the merrier? The effect of group size on effectiveness in SME funding campaigns

To overcome resource shortages, companies can subscribe to groups that, in competition with other groups, seek to obtain external funding for the joint development of innovations. In this context, the authors argue smaller groups are better equipped to be successful in external funding campaigns. Based on five-year panel data from a sample of 53 Swedish groups of small and medium-sized companies, the authors find support for a claim suggesting that due to the adverse effect of group size on governance and internal cohesion, the costs associated with group size will outweigh benefits, which reduce the ability to compete for external funding. Consistent with their expectations, the authors find that the adverse effect of group size on fundraising effectiveness is mitigated by internal and external governance devices including the presence of external directors on the group board and interlocking board memberships, and by a bottom-up group formation process.

The structure and dynamics of technological systems: a conceptual model

Abstract This paper focuses on the construction of an integrated model of technological systems. The model has two purposes: 1. (1) to clarify the scope and relations of various concepts in this field, especially the concepts of technology, of national systems of innovation, and of technological systems; and 2. (2) to provide a framework in which to study the conceptualization and construction of evolving technological systems. These purposes require the creation of new concepts and the redefinitions of some familiar ones. The model is structured at four levels of aggregation: 1. (1)the individual; 2. (2)the organizational; 3. (3)the sectoral; and 4. (4)the national. From within this structure we can identify parallaxes, or changes in the appearance of each of the four levels as the level from which observation takes place is changed. The structure of the model and the concept of parallax serve to clarify some important complexities of the dynamics of the system within which technological change takes place.

Entrepreneurship and Policy: The National System of Entrepreneurship in the European Union and in Its Member Countries

Abstract In this paper, we provide a brief review of how entrepreneurship policies have evolved and what implied conceptions of “entrepreneurship” underlie attempts to measure the phenomenon. We propose that a major shortcoming in policy thinking is the insufficient recognition that entrepreneurship, at a country level, is a systemic phenomenon and should be approached as such. To address this gap, we propose the concept of National Systems of Entrepreneurship that recognizes the systemic character of country-level entrepreneurship, and also recognizes that, although embedded in a country-level context, entrepreneurial processes are fundamentally driven by individuals. We then explain how the Global Entrepreneurship and Development Index methodology is designed to profile National Systems of Entrepreneurship. We apply the GEDI approach to examine the entrepreneurial performance of the European Union. According to the GEDI index, the EU countries reveal considerable differences in their entrepreneurial performance. Moreover, there are even larger differences over the 14 pillars of entrepreneurship. In addition to highlighting bottleneck factors, the index also provides rough indications on how much a country should seek to alleviate a given bottleneck. While there are numerous ways to improve entrepreneurship in the EU and its member states, we analyze only one simple situation. An important implication of the analysis is that uniform policy does not work, and the EU member states should apply different policy mixes to reach the same improvement in the GEDI points.

The Speed and Extent of New Venture Internationalisation in the Emerging Economy Context

The objective of this paper is to explore to what extent the patterns of the internationalisation process described in the new venture (NV) internationalisation theory, developed on the experience and practice of advanced economy firms, apply to the emerging economy context. The paper is a systematic literature review developed on the basis of peer reviewed journal articles on NV internationalisation in emerging economies. It critically evaluates the applicability of arguments proposed by the NV internationalisation theory to the emerging economy context. In contrast to firms from advanced economies, internationalisation of NV from emerging economies is mainly driven by push factors related to their domestic markets. Transportation, communication and digital technology play a less relevant role in emerging economies; besides, their significance is more context specific; while their absence does not inhibit rapid internationalisation. To better understand the process of NV internationalisation in the emerging economy context, it is necessary to study to what extent other theoretical logics contribute to its explication. Further research should also seek to synthesise findings of research on other major theoretical frameworks. The paper contributes to the NV internationalisation theory by offering some propositions on the specifics of international entrepreneurship in the emerging economy context.

The Global Entrepreneurship Index

The modern temple of the entrepreneurial ecosystem is like many temples of the ancient world: both are held up by pillars. Like the pillars of ancient temples—made of sand and limestone held together by cement—the pillars of the economic ecosystem are made of individuals and institutions that are held together by the “cement” of incentives created by institutions that influence the behavior of people. The entrepreneurial ecosystem rests on these pillars of development, which hold up three large building blocks consisting of attitudes toward entrepreneurship, entrepreneurial abilities, and entrepreneurial aspirations. The pillars must be of similar height and strength for a fully developed economy to flourish, and they need constant attention, continuous improvement, and careful maintenance.