The Internationalisation of Young High-Tech Firms

Bürgel, Oliver; Fier, Andreas; Licht, Georg; Murray, Gordon

doi:10.1007/978-3-7908-2702-6

Cited by 26 publications

(50 citation statements)

References 40 publications

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“…19 In connection with the first survey conducted in 1997, 40 case studies (20 in each country) were carried out in order to illustrate the statistical findings of the large mail survey. The interviews, which are documented in detail by Bürgel et al (2004), also support the interpretation that the internationalisation process of German firms can be described as a "pull-strategy", whereas UK firms rather follow a "push-strategy". 20 Note that the unit of analysis for these figures is not the individual firm but the single country entered by the firm.…”

Section: Data and Descriptive Analysissupporting

confidence: 53%

“…The differences between German and UK firms might again be due to the more pro-active behaviour of UK firms (see Bürgel et al 2004). The latter firms operated a "push-strategy" (Andersson 2000), i.e., from their first export activities they actively created the internationalisation process of their firm and exploited the sales potential of the foreign market.…”

Section: Data and Descriptive Analysismentioning

confidence: 99%

“…It analyses empirically changes of sales modes using a longitudinal data set of newly founded technology-based firms (NTBFs) in Germany and the UK. For these firms, international business activities are regarded as crucial for growth and long-term survival since sales potentials in their domestic European markets are limited (see, e.g., Bürgel et al 2004). …”

Section: Introductionmentioning

confidence: 99%

“…This paper's empirical research is based on two surveys that were conducted simultaneously in Germany and the UK. In 1997/1998, a joint research team comprised of analysts from the London Business School and the Centre for European Economic Research (ZEW) contacted a stratified random sample of German and UK-based NTBFs founded between 1987 and 1996 by sending out a written questionnaire (see Bürgel et al 2004). In the summer of 2003, all surviving firms from the original sample (about 25 % of the firms had already dissolved), which were then 12 years old on average, were contacted once again.…”

Section: Introductionmentioning

confidence: 99%

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The Change of Sales Modes in International Markets - Empirical Results for German and British High-Tech Firms

Fryges

2005

SSRN Journal

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Die Discussion Papers dienen einer möglichst schnellen Verbreitung von neueren Forschungsarbeiten des ZEW. Die Beiträge liegen in alleiniger Verantwortung der Autoren und stellen nicht notwendigerweise die Meinung des ZEW dar.Discussion Papers are intended to make results of ZEW research promptly available to other economists in order to encourage discussion and suggestions for revisions. The authors are solely responsible for the contents which do not necessarily represent the opinion of the ZEW.Download this ZEW Discussion Paper from our ftp server:ftp://ftp.zew.de/pub/zew-docs/dp/dp0582.pdf Non-technical SummaryWhen entering into a foreign market, a firm has to choose an appropriate sales mode. This choice belongs to the firm's most important strategic decisions. Firstly, it determines the amount of resources a firm has to invest in establishing business relationships with its foreign partners and customers. Secondly, the way of organising the firm's distribution and logistics depends crucially on the chosen sales mode. Finally, it affects the level of control the exporting firm possesses over its international transactions. Considering the far-reaching consequences of the choice of a sales mode, it is important that the selected foreign sales mode best suits a firm's available resources and capabilities. However, these resources and capabilities change over time. Hence, it might be necessary for a firm to adjust its foreign sales mode to these changing firmspecific conditions. Otherwise, its selected sales mode might become inappropriate for selling the firms' products abroad.This paper examines a longitudinal data set of German and British technology-oriented firms founded between 1987 and 1996, inclusive. Firms operating in high-tech sectors presumably experience profound changes during an early stage of their life cycles. Thus, it is of special interest under which conditions firms of this particular sample change their foreign sales modes. The firms were contacted using two surveys conducted simultaneously in Germany and the UK in . Both in 1997 three-quarters of the sampled firms had international sales. The two most frequently used sales modes were direct exports and exporting via an intermediary. There is a high persistence in the chosen sales mode over time, probably because of the existence of sunk costs an exporter has to pay when entering into a foreign market or because of binding contracts an exporter made with its foreign distributors or customers. Nevertheless, we observe changes from direct exports to exporting via an intermediary as well as transitions in the opposite direction. The former mode of transition took place primarily in the period between target market entry and the time the first survey was conducted, whereas a transition from an intermediary to direct exports was observed primarily in the period between the two surveys.Estimating the probabilities of these two modes of transition, the results confirm the importance of the firm's physical and intangible resources as well as the...

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Section: Data and Descriptive Analysissupporting

confidence: 53%

Section: Data and Descriptive Analysismentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Change of Sales Modes in International Markets - Empirical Results for German and British High-Tech Firms

Fryges

2005

SSRN Journal

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show abstract

“…This mechanism is known in the related literature as export-led growth (see Feder 1982). In fact, the potential of the international market to sustain long-term company growth was ranked as the most important motive for international business activities by the majority of both German and UK firms in our sample in 1997 (see Bürgel et al 2004). However, an exporter that has already attained a relatively high export intensity prior to the regarded growth period (i.e., in our case, from 1997 to 2002) can be expected to grow at a smaller rate than a firm with a medium-level export-sales ratio.…”

Section: Motivationmentioning

confidence: 98%