Entry mode choices in the international new ventures context. A study from different theoretical perspectives

Abstract

Few studies have investigated the factors that enhance entry mode choice in the context of international new ventures (INVs). In this paper, we hypothesize that the characteristics of INVs' products or services can explain their preference for equity entry modes. We also hypothesize that the inter-firm networks in which INVs are embedded play a deciding role in their choice of non-equity entry modes. When INVs are in inter-firm networks in which activities are developed to manage them, non-equity entry modes are preferred. We have adopted an effectuation approach to study the influence of different inter-firm network management activities on entry mode choice. In short, we have studied the effect of developing inter-firm network knowledge exchange, coordination, adaptation, conflict resolution and resource sharing management activities. In this paper we attempt to contribute to international entrepreneurship studies by reconciling the most widely accepted approaches to entry mode choice (Transactional Cost Economics, Organizational Capabilitiesbased and Network perspective) and international new ventures. Our findings show that the technological complexity of INVs' products/services explain their preference for equity entry modes. Additionally, the development of network management activities among the networked firms determines the INVs' preference for non-equity entry modes. Our results draw a decision model that differs from the ones derived from previous perspectives, which highlight the role of different characteristics of international new ventures.

The Effect Of Entrepreneurial Orientation, Market Orientation, Business Network Ability And Product Innovation On Performance (Study in Small and Micro Enterprises of Food in Padang)

“…al., (2016) that entrepreneurial orientation will influence market orientation, where entrepreneurial orientation will help an entrepreneur to recognize market opportunities. The same thing was found by (Ripollés & Blesa, 2016) that entrepreneurial orientation has a positive effect on market orientation, where a business that has an entrepreneurial orientation will be able to understand and recognize market opportunities before competitors so that they gain more market share and benefit. In line with previous research conducted by Solano, et.…”

“…A business that has a strong entrepreneurial orientation will try to get more information, so it is easier to identify business opportunities. To get information, a business will collaborate with partners to make it easier to get information, both from suppliers, entrepreneurs, and other businesses, so it is easier to identify market opportunities (Ripollés & Blesa, 2016). Then, Mu, et.…”

“…al., (2018) revealed that a strong entrepreneurial orientation will show a business culture that can facilitate and identify business opportunities that arise, so it is possible for a business to develop new products and services. Furthermore, Ripollés & Blesa (2016) found that entrepreneurial orientation has a positive effect on market orientation, where a business that has an entrepreneurial orientation is able to recognize market opportunities before its competitors, so they get a lot of market share and benefit. The entrepreneurial orientation will improve market orientation, where a business that has a proactive orientation will develop the best product or market strategy based on opportunities that arise.…”

“…That way, they can decide how to get market opportunities, which markets are targeted by the business, and how to maintain market share (Morris, et al, 2010). Furthermore, risk taking involves brave behavior on a project that has a higher failure rate (Ripollés & Blesa, 2016). A business that has a high risk-taking orientation will have a strong commitment to take business projects, use comprehensive actions, take advantage of emerging business opportunities to achieve business goals, meet market needs, and provide customer satisfaction.…”

Mejora del resultado de las nuevas empresas internacionales a través de las redes empresariales y su influencia en la elección de modos de entrada cooperativos

“…Las INV identifican dos fuentes para encontrar socios que permitan la entrada en nuevos mercados internacionales: que los socios de NCEM formen parte de la red actual de la empresa y que los socios de NCEM no formen parte de la misma (Ripollés & Blesa, 2017). En ambos casos, el compromiso de los miembros de la red social por compartir información ofrece acceso y referencias, lo que reduce la probabilidad de enfrentarse a futuros comportamientos oportunistas de los socios de NCEM.…”