Search

We examine the influence of founders’ prior shared international experience on the timing of their new ventures’ first entry into foreign markets. We propose that this experience, which is gained by founders working concurrently for the same international firm prior to the founding of the current company, provides them with shared knowledge and routines that they can use to enter foreign markets for the first time earlier in the venture’s life. Further, we propose that founders’ diversity strengthens this relationship, because diverse groups of founders have a broader range of knowledge, skills, and perspectives, which facilitates the adaptation of their prior shared international experience to their new venture setting. This is likely to further reduce the time it takes them to enter foreign markets for the first time. We also argue that industry dynamism weakens the relationship between founders’ prior shared international experience and the time to first foreign market entry, because this type of experience is likely to become obsolete in a rapidly changing environment. Finally, we hypothesize that early internationalizers enjoy higher performance than late internationalizers. We test these predictions using a sample of Swedish new ventures. Our results contribute to the literatures on founders’ shared experience and early internationalization.

Purpose This study aims to find empirical evidence on the effect of cross-border acquisition (CBA) on the financial leverage of the acquirer from Asia. It also examines the moderating role of the target countries (developed or developing countries) and experience of the acquirer in the foreign market on the relationship between CBA and financial leverage. Design/methodology/approach This study uses pooled data regression using 1,073 acquisition transactions by Asian Acquirer from 2012 to 2014. Findings The results show that before the acquisition, the leverage level of CBA firms is higher than the domestic acquisition firms and after the acquisition. CBA firms increase their leverage. This study also shows that the increasing leverage post the CBA is lower if the target comes from developed countries rather than developing countries and acquirer’s experience in international activities does not affect the impact of CBA on acquirer’s post-acquisition financial leverage. Originality/value The study contributes to the literature by providing empirical evidence of the impact of CBA on leverage in the context of Asian countries. By contrast, most of the Asian countries are developing countries, and the institutional environment across countries in Asia is different from developed countries from other regions.

Purpose By bringing together the IB and IE literatures, the purpose of this paper is to examine the internationalization process as an entrepreneurial process related to the development of international opportunities. It explicitly connects different types of knowledge (i.e. market and internationalization), international opportunities and the internationalization process comprising both new foreign market entry and sequential moves that happen after entry. Design/methodology/approach This is a conceptual paper that reviews the literature on knowledge, opportunities and the internationalization process. Moreover, the paper identifies the current gaps in the literature and builds new theory that sheds light into how these three concepts are related. The paper also presents a model and propositions that should guide future research. Findings The proposed model shows that market and internationalization knowledge combine to form the international knowledge stockpile of the firm, which moderates the relationship between the development of international opportunities and the internationalization process, comprising not only new foreign market entry but also sequential moves that happen after entry using either mode continuation or modal shift. Moreover, it shows that the development of opportunities only leads to modal shifts after a certain threshold is achieved. Research limitations/implications The propositions suggest that market and internationalization knowledge are positively related to international opportunities, which, in turn, are related to foreign market entry and sequential moves using mode continuation. International opportunities, however, are related to modal shifts only beyond a threshold. Moreover, the international knowledge stockpile of the firm moderates the relationship between international opportunities and the internationalization process. Because this is a conceptual paper, the propositions have not been tested and, therefore, lack empirical validation. Nonetheless, the model is a starting point to new research on internationalization distinguishing different types of knowledge as well as different sequential moves. Originality/value This study shows that the internationalization process is contingent on the different types of knowledge associated with it. It also introduces the idea of a threshold that shapes the internationalization process. The bulk of the research on internationalization suggests that such a process is gradual and incremental. This study offers a non-linear alternative.

The purpose of this paper is to identify the role of fiscal policy in Kosovo, comparing with the Western Balkan countries, in the trends of economic development, which are related to the international market, and how to achieve the objectives of the economy of Kosovo, penetrating the foreign market of local companies, using fiscal policy instruments. Data processing is performed using deductive-analytical methods, describing and comparing research findings by commercial companies, extracting data and comparing official reports of national and international institutions on the role of policies analyzed in the Western Balkan countries and in Kosovo, and the results of the research are based on these analyzes. Each sovereign state has its own fiscal policy operating within the financial system of that country, which also influences the development trends of international trade, the same applies to Kosovo and the Western Balkan countries, where this policy includes customs tax, VAT, tax in personal income, etc. The government of the country, through fiscal policy instruments, creates conditions for companies to be as present in the foreign market as possible with their products, which impacts on the overall economic development of the country. achieved. The paper provides insights into the state of the fiscal system in Kosovo, how fiscal policy affects the creation of conditions for foreign trade development, where is Kosovo's economy is in relation to the Western Balkan countries and what are the steps needed to improve it. The paper provides real data on the state of the fiscal system in Kosovo and its full role in the development of foreign trade in relation to the Western Balkan countries.

We expand the conceptualization of psychic distance and use a multilevel framework by studying it as a founder’s psychic distance in the pre-entry phase of entering a specific foreign market, and the SMEs (firm) psychic distance in the post-entry phase of entering that specific foreign market. Based on qualitative research involving six SMEs’ with 18 internationalization events, we found that psychic distance at country and business levels causes difficulties for SMEs in the post-entry phase because of their lack of knowledge. Bridge-makers possessing knowledge about target markets help SMEs to overcome psychic distance challenges. Trust in the relationship with the bridge-maker is an important ingredient to gain knowledge that alleviates the SMEs’ psychic distance challenges. Finally, we go beyond country-business levels of psychic distance by showing that psychic distance also matters at bridge-maker level. This relates to their lack of knowledge about the target market and SMEs’ routines.

Purpose The purpose of this paper is to offer an integrative model of foreign market learning, including different learning processes, antecedents and outcomes. Design/methodology/approach The paper makes a critical review of the relevant literature, drawing on a keywords-based search of three major databases and a range of other published work for a broader perspective on the subject. Findings The resulting integrative model shows in a number of ways how companies can learn and benefit from differences in foreign markets and what results this can lead to. Research limitations/implications The sample of subject-specific contributions to the literature may have been insufficient, and a wider selection of keywords to identify them might have captured a richer variety of concepts and opinions. Originality/value The integrative model contributes to the literature on foreign market learning and innovation and serves as a basis for future studies and current management strategy.