The Role of Entrepreneurial Networks in the Exploration and Exploitation of Internationalization Opportunities by Information and Communication Technology Firms

Abstract

This article investigates the role of entrepreneurial social and business networks in the internationalization of hightechnology firms. The authors present case study evidence from born-global information and communication technology firms that shows that established and newly formed social networks can be instrumental in exploring internationalization opportunities. These social networks potentially lead to collaborative cooperation and form part of an entrepreneur's broader business network that facilitates exploitation of internationalization opportunities culminated by successful entry into foreign markets. The study incorporates contemporary literature and offers an internationalization opportunity exploration-exploitation model emanating from the entrepreneur's network configuration. In doing so, it takes a process approach and provides much needed qualitative evidence in network research.

Toward A New Model For Firm Internationalization: Conservative, Predictable, and Pacemaker Companies and Markets

“…Knowledge-intensive firms are based upon value creation rather than labour or capital (Kärreman, 2010). IT involves investment of intellectual resources; an IT firm is classified as knowledge-intensive only if it has advanced technology capabilities and a well-educated workforce (Vasilchenko & Morrish, 2011).…”

“…Pacemakers heed Jenssen and Nybakk's (2013) and Kärreman's (2010) explanation that innovation by knowledge skills is a competitive advantage and a key to success. Acting upon the research by Vasilchenko and Morrish (2011), pacemakers have a well-educated workforce and tend to employ more people compared to other type of firms, and thereby tend to attract the highest number of customers. Pacemakers act upon the findings of Ruiner et al, (2013) and are flexible organizations that respond well to market dynamics.…”

Looking Back to Move Forward: A Review of the Evolution of Research in International Marketing Channels

“…The second is by utilizing a contrasting approach to explore situations where the macro-environments of the focal dyad actors, who are participating in the primary or secondary task environment are heterogeneous (i.e., understanding primary task environment interactions when channel members come from heterogeneous macro-environments). Examples of the contrasting approach would include examining the efforts of firms to internationalize into new countries (e.g., Vasilchenko and Morrish 2011) or the factors that influence trust between Chinese buyers and Malaysian sellers (e.g., Armstrong and Yee 2001). In rare cases, both approaches to heterogeneity have been used within a single work.…”

Stakeholders and Marketing Capabilities in International New Ventures: Evidence from Ireland, Sweden, and Denmark

“…Insofar as extant literature has posited that international market-driven, customer-focused firms have more superior marketing capabilities than non-market-driven firms (Rialp et al 2005), a firm's diverse network relationships beyond the customer have been central to understanding the international marketing processes of small firms (Chandra, Styles, and Wilkinson 2012;Evers and O'Gorman 2011;Loane and Bell 2006;Vasilchenko and Morrish 2011). A firm's stakeholders are embedded directly and indirectly in interconnected networks of relationships (Rowley 1997).…”