To Internationalize or Not to Internationalize? A Descriptive Study of a Brazilian Startup

Abstract

IntroductionTechnology-based startups have been growing exponentially in Brazil (ABStartups, 2018). Faced with a limited market with global potential, a technology startup aims to internationalize early and fast. These high-tech companies provide innovative products and services and operate as pioneers in a small global niche market (Neubert, 2015).A company born of a small, open economy is often forced to internationalize early and fast to become profitable (Neubert, 2016a). However, early and rapid internationalization is very challenging for entrepreneurs because it requires specific skills and excellent preparation, including, for example, product adaptations (Neubert, 2016b).This study stems from the authors' research on the themes of entrepreneurship and internationalization, and it focuses on the Brazilian scenario regarding the exponential growth of startups and the need for global technology startups to grow beyond national boundaries. The startup under study unsuccessfully attempted to internationalize shortly after its foundation. For the founders, it was a bitter result. However, years later, with the experience they have acquired and the injection of investment, the founders are considering a second attempt. To internationalize or not to internationalize? That is the question that is again facing the founders, and that is the focus of the present study.In order to answer this question, the initial experience with the failed internationalization, the current startup context, the economic scenario, and the justification for potential expansion are described in this article. First, we review the literature on internationalization, export barriers, the origin and concept of startups, and related areas. Next, we summarize our descriptive research methodology. Then, we describe the results and discuss the history and current situation of the case. Finally, we conclude the article with a list of key findings and recommendations. Literature ReviewInternationalization As the globalization of markets progressively develops, our understanding of cultural and social aspects emerges as a fundamental challenge in the process of This study examines the failed internationalization experience of a Brazilian high-tech startup. The research methodology of the study is descriptive and aims to explore whether this startup should re-internationalize, despite an unsuccessful first experience. Based on interviews with the founders, it was found that the initial internationalization took place in an incipient way, in the heat of the moment. The lack of success with the initial internationalization did not shake the directors of the startup, who aim to return to internationalization, now in a consolidated way and counting on the advice of an investor. Despite its bitter first experience, should the startup try again? Through an analysis of the lessons learned from the startup's initial failure and insights from its consideration of a possible second attempt, this study contributes to the literature on competitiveness, intern...

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