Post–Entry Speed of International New Ventures

Abstract

We conceptualize a learning-based model of international new ventures (INVs)' post-entry internationalization speed focusing upon two measures: country scope speed and international commitment speed. We contribute to a deeper understanding of the pace of international expansion of the new venture once it has become an INV by articulating the role of (1) the speed of learning, influenced by social capital and absorptive capacity, and (2) the content of learning represented by knowledge accumulation. We also offer a more refined perspective on organizational learning, which indicates that different stages in the process of exploitative learning require different forms of social capital.

Knowledge acquisition for the internationalization of the smaller firm: Content and sources

“…Internationalizing smaller firms' need for knowledge is great, but their ability to resource is often limited, so they need to use both external and internal sources (Autio et al, 2010;Fernhaber et al, 2009). We suggest that external knowledge sources are especially important for internationalizing firms with limited experience (Casillas et al, 2009;Cohen & Levinthal, 1990;Fernhaber et al, 2009;Prashantham & Young, 2011).…”

“…For example, new market knowledge can lead to new technology knowledge that can help firms to tailor their sales efforts to local conditions (Prashantham & Young, 2011;Shane, 2000). Firms need to codify information and record it in information systems if they are to distribute and be able to retrieve 12 information sufficiently to improve learning (Huber, 1991;Prashantham & Young, 2011). Effective formal and informal communication lines are needed within intra-firm networks with interpersonal linkages, otherwise information loss will hinder internationalization (Karlsen et al, 2003).…”

“…Internationalization knowledge is not country specific, because it is concerned with principles for operating in international markets in general (Eriksson et al, 1997(Eriksson et al, , 2000Li et al, 2004;Prashantham & Young, 2011). It is firm specific knowledge that has to be integrated internally and coordinated with the firm's other resources to be useful (Blomstermo et al, 2004b;Eriksson et al, 1997;Johanson & Vahlne, 2009;Welch & Luostarinen, 1988).…”

“…Firms can develop knowledge by piecing together items of information that they obtain from other internal units (Huber, 1991). For example, new market knowledge can lead to new technology knowledge that can help firms to tailor their sales efforts to local conditions (Prashantham & Young, 2011;Shane, 2000). Firms need to codify information and record it in information systems if they are to distribute and be able to retrieve 12 information sufficiently to improve learning (Huber, 1991;Prashantham & Young, 2011).…”

“…Internationalization knowledge embraces abilities to search for information, to identify and evaluate opportunities, screen country markets, evaluate strategic partners, and manage customs operations and foreign exchange (Prashantham & Young, 2011;. Internationalization knowledge helps lateral internationalization into new geographic markets by aiding their strategic market entry decisions (Fletcher, 2009;Forsgren, 2002;Johanson & Vahlne, 1977).…”