Role of experience and knowledge in early internationalisation of Indian new ventures

Abstract

Purpose The purpose of this paper is to investigate the role played by knowledge and experience of the entrepreneurs in early internationalisation of small- and medium-sized Indian new ventures. Using the theory of international new ventures (INV) and knowledge-based view (KBV); the conceptual framework of this study develops three propositions. First, it has been suggested that experience of the entrepreneurs motivates them to internationalise. Second, experience of the entrepreneurs increases their market and technological knowledge. Finally, it has been suggested that without market and technological knowledge, new ventures find it difficult to expand beyond national borders. Design/methodology/approach This study employs a comparative case analysis research design to investigate the propositions. The key constructs are drawn from prior empirical research and the relationships are tested using qualitative analysis. Findings Key findings of this study suggest that along with experience and knowledge, entrepreneurs’ education background is positively associated with new venture internationalisation. It was found that importance of knowledge resources varies across nature of business and industry in which INVs operate. Research limitations/implications Findings of this study contribute to advancing the literature on INV and KBV. The findings provide a framework to entrepreneurs to help them improve their decision-making logic and increase the speed of international growth. Originality/value Very few studies have investigated the internationalisation of new ventures from India. The knowledge is limited on the ways in which entrepreneurs acquire experience and assimilate knowledge in internationalising their operations.

How Does Managerial Experience Predict the Internationalization Type of a Young Firm?

“…Data Method(s) Main results Andersson & Evangelista (2006) [67] interview data (Sweden and Australia, 3 firms from each) within-and cross-case analysis founders' international experience (for instance, from working in multinational firms in the home country or abroad or studying abroad) can be important for fast internationalization; however, some firms without such experience also internationalize fast Arte (2017) [68] interview data (India , 6 firms)…”

Human Capital and the Internationalisation of SMEs: A Systemic Literature Review

“…The application of several research methods appears to be limited ( Figure 5). Only five articles combined Only five articles combined quantitative and qualitative methods (Mozas-Moral et al, 2016;Trapczynsky et al, 2016;Ng & Hamilton, 2015;Colapinto et al, 2015;Arte, 2017). In addition, eight articles presented conceptual studies or reviews.…”

“…In addition, eight articles presented conceptual studies or reviews. Though case studies are an appropriate method to answer the questions "how" and "why" (Nowinski & Rialp, 2013), such studies are far from being representative (Arte, 2017). Case studies rely on a small number of cases and thus, the longitudinal approach (Duarte Alonso, & Austin, 2016) or a greater sample size (Gittins & Fink, 2015) are recommended.…”

The Effect of Product Knowledge on Salesperson Performance with the moderating role of Attitude

“…Knowledge is everything we know. There are two types of knowledge, namely factual knowledge, in the form of information that we receive as reality and experiential knowledge, namely the understanding that we obtain comes from a person's experience [6]. The breadth of insight or knowledge is one of the requirements so that a person can optimally and productively work and improve the quality of his life.…”