Jurgita Sekliuckiene

Factors leading to early internationalization in emerging Central and Eastern European economies: Empirical evidence from new ventures in Lithuania

Purpose The purpose of this paper is to explore factors leading to the early internationalization of international new ventures (INVs) in Lithuania – a transition economy in Central and Eastern Europe (CEE). The determinants of early internationalization were grouped into three categories: entrepreneurial, firm-related and contextual determinants, and their impact on high-tech INVs that operate in emerging economies was investigated. Design/methodology/approach The research design is a case study approach. Case studies are presented of six Lithuanian entrepreneurial firms that demonstrated successful internationalization and rapidly expanded into foreign markets during the preceding year. Findings Region-specific theoretical propositions are provided for new ventures in CEE emerging economies. The results reveal that essential factors leading to the early internationalization of INVs operating in Lithuania, a transition economy, are entrepreneurial factors. Internationalization of INVs from CEE emerging economies is driven by push factors related to domestic market specifics; however, institutional factors do not seem to have a significant impact on INVs’ internationalization. Research limitations/implications The results of the analysis of the case studies are not generalizable to the entire population of INVs in Lithuania. However, the results are substantial considering the success of high-tech Lithuanian firms that started their international activities shortly after their inception. Future research can contribute to the literature by seeking to apply international new venture theory in the context of emerging economies with larger samples and a focus on distinct patterns of internationalization. Originality/value The findings contribute to the literature on international entrepreneurship by exploring early internationalization of INVs in the context of transition economies in CEE. This study’s contribution is based on theory building, especially in understanding the driving factors related to the early internationalization of new ventures founded by Lithuanian entrepreneurs. International entrepreneurship studies in the CEE, as well as Baltic countries, are limited, and this research contributes to filling this gap.

Fostering Internationalization Through Networks: An Inter-organizational Psychic Distance Perspective

Because of the growth of international business integration, internationalization of firms has become necessary in order to try to remain and develop the business regardless the size of firm, managed resources, and type of the activity. Multinational companies seek to accelerate their internationalization because of the extremely rapidly changing environment, as well as in order to reach companies’ long-term goals. Especially small and medium size enterprises (SMEs), which are one of the most important market players, are seeking to internationalize their business activities quickly in that small businesses lack the financial, time and other resources. Involvement in networks becomes the main precondition for the rapid internationalization of SMEs. Due to the lack of resources, SMEs need to accumulate and acquire knowledge through networks and the prior experience of the founding or management team. The nature of SMEs conditions the internationalization pattern in foreign countries. Mostly in order to reach critical profit margins this kind of company competes in niche markets in a large number of different countries. This behavior of SMEs implies that psychic distance (PD) is likely to have a greater impact on SME’s internationalization through networking. Therefore, this chapter aims is to create a theoretical construct aimed at developing a greater understanding of fostering internationalization through networks by focusing on psychic distance at the inter-organizational relationship level of small and medium enterprises and their foreign partners. The study contributes to conceptualization of these constructs, by providing a conceptual framework from an inter-organizational perspective.

Toward International Entrepreneurial Orientation and Networking of Born Global Firms

The chapter summarizes the insights from international entrepreneurship literature focusing on the entrepreneurial orientation, drivers of internationalization, and network relations of born global firms. These ventures pay attention to knowledge-intensive products and innovations, have accelerated internationalization, and exploit a global niche from the earliest days of their foreign operations. This paper highlights the connection of international entrepreneurial orientation and networking of born global firms as well as points out the acceleration role of network for entrepreneurial born global. The qualitative analysis has been performed based on information technology born global firms founded by Lithuanian entrepreneurs. Empirical results highlight the drivers for rapid internationalization, necessity of entrepreneurial orientation, and born global firm’s relations with upstream, downstream, and horizontal partners. Results suggest that creation of networks and active involvement in entrepreneurial ecosystem is one of the key success factors for the scope of international expansion.

Retailing in Lithuania – Market Overview and Future Challenges

The article presents an overview and development of the retail trade services sector in Lithuania. The investigated period is from the beginning of 1990, when Lithuania regained its Independence from the Soviet Union, to the end of 2010. The main structural changes in retailing until 2000 when Lithuania passed through a transition economy and later, when a market economy started, are presented. The Lithuanian retail market is characterised by high concentration, market regulation and strong national retail players. The Lithuanian retail sector recently has encountered increasing competition not only due to sharp competition between local players, but also because of entries of foreign companies to the market. The impact of internationalization on the retail trade sector in Lithuania is a relatively new phenomenon. A comprehensive overview of internationalization development in the Lithuanian retail trade sector is presented and future challenges are pointed out in the article.