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We provide an integrative account of how springboarding emerging market multinational enterprises (EMNEs) traverse the distinct contexts of their home and host markets by synthesizing the composition-based view with the Springboard Perspective to offer a novel, holistic, and dynamic Compositional Springboarding Perspective of EMNE evolution. We argue that EMNE internationalization entails a meta-duality between a compositional logic (home market) and springboarding logic (host market), and that the capabilities associated with springboarding – amalgamation, ambidexterity, and adaptability – help balance these two logics’ interplay and integration. We elaborate on the differential roles that these capabilities play across the upward spiral’s five stages (the process of EMNE evolution), which have differing emphases in terms of these logics.

Entrepreneurs play a focal role in a society's economic recovery from major disruptions such as the COVID-19 pandemic. We argue that entrepreneurs' ability to identify and act on entrepreneurial opportunities during the crisis reflects their resilience, and their innovations facilitate new patterns of work, learning, and leisure activities in post-COVID-19 societies. However, how, how quickly they act, and how influential their actions are depends on their context in terms of institutions, resource access, and market volatility. In China, some entrepreneurs have shown great resilience by utilizing network relationships and digital technology, not only to overcome short-term disruptions in 2020 but to shape the evolving 'new normal' where behaviors and capabilities have changed as a consequence of the experience of the pandemic. We discuss drivers of such resilient entrepreneurship during the COVID-19 pandemic in China and call for further research on the interplay between external disruptions, different types of entrepreneurship, and the consequences for resilience in emerging economies. © The Author(s), 2021. Published by Cambridge University Press on behalf of The International Association for Chinese Management Research.

Strategy as practice (SAP) research has developed into an established area of study, and the Journal of Management Studies (JMS) has played an important role in this as a hospitable outlet, including via a foundational special issue in 2003. This article offers a bird's eye view of the domain and a ready source of relevant literature to both seasoned scholars and newcomers to this topic. We make three observations that reflect both the JMS thematic collection and the wider literature on SAP and help to shed light on some of the key tensions facing scholars who seek to develop a distinct body of research. First, in terms of the rationale for SAP research, this body of work has grappled with its framing as building upon, yet distinct from strategy process research, to delve into practices within strategy process. Second, in terms of the approach to research (and community-building), SAP research has reflected European intellectual roots which has helped to deliver on its broad research purpose but has perhaps also impeded its impact on more mainstream strategy. Third, in terms of the contribution of SAP research, there has been a large volume of high quality work, appearing in well-regarded journals, generating a considerable diversity of perspectives.

Partnering with startups is an important way by which large multinational corporations (MNCs) pursue open innovation. This article sheds light on distinctive startup partnering strategies across multiple locations. These vary in terms of institutional strength (advanced vs. emerging markets) and local reputation in a given sector (cluster vs. non-cluster). Different partnering strategies are appropriate for each location type: a template-based or purpose-built approach (in clusters vs. non-clusters, respectively), and a facilitative or directive approach (in advanced vs. emerging markets, respectively).

A large number of Chinese firms lack the resources for having competitive advantages. Under this severe constraint, such firms are forced to find new paths toward developing certain competitive advantages, including the ability to combine ordinary resources into novel competitive advantages, which is referred to as compositional capability. Such a special capability underlying novel competitive advantages is related to certain cultural factors, such as the Chinese cultural tradition in the case of China. However, the potential links between compositional capability and the Chinese cultural tradition remain poorly understood and largely unspecified. This paper responds to the call for more research on identifying relevant cultural factors by explicating the inherent connections between compositional capability and the Chinese cultural value of balanced moderation.

Purpose The purpose of this paper is to examine whether subnational market-supporting institutions in Indian states affect the likelihood of Indian multinational enterprises (MNEs) to undertake acquisitions in advanced economies (AEs) rather than emerging economies (EEs) and, if so, which mechanism – institutional fostering or escapism – underlies the phenomenon. Design/methodology/approach The paper uses a logistic regression model on a dataset of 647 firm-level cross-border acquisitions (CBAs) undertaken by Indian MNEs during the period 2010–2016. Findings The paper finds support for the institutional escapism mechanism, as opposed to the institutional fostering mechanism, underlying Indian MNEs’ acquisitions in AEs (rather than EEs). That is, firms headquartered in Indian states where market-supporting institutions (such as economic liberalization and efficiency of legal systems) are weak are more likely to undertake CBAs in AEs than in EEs as an escapist response to weak subnational institutions at home. Originality/value The paper highlights the relevance of the mainstream international business (IB) concept of emerging market multinational enterprises (EMNEs) internationalization to critical IB scholarship by examining subnational institutional influences on EMNEs’ foreign market choice between AEs and EEs. In particular, by providing evidence for the institutional escapism mechanism which has potential negative socioeconomic consequences in the region of the investing firm, the paper adds to critical IB research which places great emphasis on the examination of inequalities and draws attention to the EMNE context as a suitable setting for further research on internationalization from a critical perspective.

Using survey data from China and India, we explore the impact of network strategy of new ventures in emerging markets. We focus on two critical dimensions of network strategy, namely, broadening and deepening the network and two types of knowledge: market knowledge and technological knowledge. We find that proactive network deepening is associated with market knowledge and network broadening with technological knowledge. From a network perspective, our work highlights the counterintuitive outcomes of breadth versus depth orientation in network strategy, highlighting differences between advanced and emerging economies. We use a post-hoc multi-group analysis to show the differences even within the two emerging markets: India and China. The direct effect of partnering proactiveness on market knowledge in India is significantly higher than that in China but there is no significant difference as to the effect of technological knowledge. We use this exploratory study to highlight the opportunities for network and entrepreneurship scholars to study emerging markets and, in particular, undertake comparative studies between new ventures in China and India.

We investigate the role of high distance in trust erosion between small partners. High distance is known to hinder the formation of trust between potential partners, but its role in trust erosion in established partnerships is less understood by international business scholars. Through a qualitative longitudinal study, we extend current theory of how high distance affects the trust dynamics between cross-border partners. Specifically, we unearth three interrelated mechanisms that together explain how and why trust can erode due to high distance. We show that, before a partnership is formed, high distance can lead partners to erroneously attribute cues to a potential partner’s high quality, leading to over-expectations of partner performance. Once the partnership is operational, high distance hinders actors’ ability to understand situational factors associated with disappointing outcomes, and so they are attributed to failings of the partner. At the same time, distance-related challenges of bounded reliability render partners reluctant to discuss partnership outcomes. This can result in a vicious cycle of inertia as partners strive to protect goodwill while abandoning efforts to produce partnership outcomes because of doubts of the other’s quality. Thus, our theoretical model illustrates the limitations of trust and explains how, paradoxically, high distance can facilitate both trust formation and trust erosion.

While there is growing interest in the division of entrepreneurial labor between MNEs and SMEs, most prior work focuses on empirical settings based within reputed clusters. To gain a more complete understanding of this phenomenon, we explore policy-induced efforts to facilitate MNE–SME collaboration for innovation in peripheral subnational regions (ones outside reputed clusters) in China and the UK. Our inductive study suggests that non-market actors’ intervention in the form of entrepreneurial boundary work entails three sub-processes: sensing, interfacing and co-creating. We find that boundary work manifests differently in advanced and emerging economies: as bottom–up opportunity discovery in the UK and top–down opportunity creation in China, with the former involving a bespoke policy measure and the latter a “bricolage” approach of making do with an existing generic policy that was creatively utilized. We thus shed useful light on how boundary work could connect previously unconnected innovation partners in different institutional contexts, and highlight the importance of integrative and innovative regional policies for promoting mutually beneficial MNE–SME collaboration.

We develop an integrative perspective on the role of coethnic ties and ties with foreign multinational enterprises (MNEs) – normally studied in isolation of each other – on the perceived legitimacy of international new ventures (INVs) from emerging economies. Building on the notions ofpeople(interpersonal diaspora ties) andpipelines(interorganizational MNE ties) in Lorenzen and Mudambi's connectivity theory of clusters, we argue that these could contribute to the focal INV's internal and external legitimacy, respectively, as it seeks to upgrade its capabilities. We go a step further by highlightingpeople within pipelines– coethnic managers working in foreign MNEs – as a potentially important catalyst of the focal INV's cross-border legitimacy. Using an illustration of an INV from Bangalore, we note that India offers a fruitful setting – and one that is distinct from China – for future INV research into the role of people, pipelines and, in particular, people within pipelines.

Prior research describes international expansion as a series of discrete steps and notes that taking them threatens new ventures' survival, especially due to unexpected setbacks. Seen through the lens of social science, the source of such threat becomes clearer. In this paper, we argue that internationalization in new ventures involves what social anthropologists call a liminal transition – a betwixt-and-between period lying between the intent to internationalize and the realization of a stable internationalized state. The ambiguous and transitory nature of this liminal transition has the potential to increase the odds of overreach (e.g. a high-cost market entry without sufficient resources). Avoiding the negative influence of liminality – and instead harnessing its positive effect – relies on three sources of support that we refer to as opportunity scaffolding: self-reflective learning, peer learning and consultative learning. We argue that entrepreneurs with personality profiles high in levels of core self-evaluation (CSE) are more likely to utilize the scaffolding like that available in business incubators effectively. This leads to the development of a more reflective mindset, making capability learning more likely, preventing decisions that lead to overreach and reducing the threat to INV survival. However we also strike a note of caution in that at excessive (hyper) levels of CSE, the internationalizing new venture could become the victim of hubris. Emboldened with unrealistically high self-confidence, hubristic entrepreneurs are more likely to rebuff use of scaffolding, leading to a more reactive mindset, increasing the probability of liminal overreach and threatening INV survival. Executive summary Internationalization represents an important pathway to growth for new ventures. At the same time, the burden of internationalization is considerable since new ventures must learn new capabilities under severe resource constraints to succeed in international markets. Thus we have a tension: internationalization increases the odds of growing rapidly and lowers the odds of survival for new ventures. Therefore, it is important for new ventures' capability learning process to be effective through harnessing network ties and entrepreneurial cognition. However, although we know a lot about what makes international new ventures (INVs) successful, there is a surprising lack of detailed understanding of the transition that these firms make during the internationalization process. Becoming a stable INV involves making sense of new environments and improvising in the face of unexpected setbacks. Previous work has focused more on how INVs fare while pursuing identified opportunities during initial or post-entry internationalization but not as much on how they cope in the transition to becoming a stable INV over time. To address this deficiency we draw upon an underutilized theoretical lens from social anthropology: liminality. Liminality describes the “betwixt-and-between” condition that is experienced during a transition when one is no longer in the original state but hasn't quite reached the new one. This perspective draws attention to both a vulnerability and an opportunity that are simultaneously heightened during transitions: the novelty of the situation can be cognitively confounding and liberating. If a new venture's entrepreneur is overwhelmed by distorted thinking during this liminal period, he or she may lead the INV to take fatal missteps, including overreaching. On the other hand, if the confusion inherent in this process can be contained and the potential creativity of this stage harnessed, then new capabilities can be learned and the potentially treacherous liminal period successfully navigated. Thus liminality theory helps to distinguish between measured and reckless improvisation. Liminal theory also helps us to identify opportunity scaffolding as an important way of avoiding liminality's negative effects by facilitating reflective learning, peer learning and consultative learning in conjunction with mentors. A practical manifestation of such support is the use of business incubators. Where these are not available, entrepreneurs may avail of mentors and peers through other means such as advisory boards or education. Furthermore, entrepreneurial personality in influences entrepreneurs' propensity for using such scaffolding: those with high levels of core self-evaluation (CSE) – confident of their abilities – are more likely to use scaffolding whereas those with low or excessive levels of CSE will tend to rebuff the use of scaffolding. Overall, our conceptualization complements previous work on capability learning with the notion of “transitioning capability” – which is the ability to harness the creativity of liminality while avoiding its confounding potential. This is a theoretical advance over how INV research views the capability learning process. And it has strong practical implications for how international entrepreneurs can thoughtfully navigate liminality, by taking advantage of opportunity scaffolding, being self-aware of limitations and strengths and avoiding overreach.

Although international business scholars have begun to recognize the division of entrepreneurial labor between MNEs and SMEs, there is a fragmented understanding of the different forms MNE–SME cooperation can take. We develop a typology that takes into account not only complementarity of capabilities but also, crucially, the compatibility of intent between MNEs (exploration vs. exploitation) and SMEs (international vs. domestic orientation). The framework offers a novel way to understand the forms and dynamics of MNE–SME cooperation. We also show how it can be applied more broadly, by considering its application to societal challenges, such as achieving the United Nations’ Sustainable Development Goals.

Startups partnering with corporations compete with one another for the latter’s attention. Based on an inductive study of concurrent partnerships between startups and one established firm as part of a programmatic initiative of the latter, we explore how startups differ in terms of (i) attention received from the corporation, (ii) actions on their part to attract and sustain such attention, and (iii) the impact of such attention dynamics on how the partnership unfolds. We find that too much attention too soon can ultimately jeopardize relational outcomes by provoking more self-oriented partnering actions. Conversely, difficulty in attracting attention initially elicits self-reflective and more oblique, other-oriented partnering actions ultimately leading to more valued relational outcomes. We highlight the dark side of both attention and direct relational action.

We extend research on the speed of new venture internationalisation by distinguishing between effectual and non-effectual (i.e. causal) network-building approaches, and conceptualising their differential effects on the dimensions of initial entry speed, country (i.e. international) scope speed and international commitment speed. Drawing upon the extant literature on internationalisation speed, network building and effectuation theory, we argue that an effectual approach to network-building is positively associated with initial entry speed and international scope speed, but negatively associated with international commitment speed, while a causal approach is negatively associated with initial entry speed and international scope speed, but positively associated with international commitment speed. In addition, we contribute to effectuation scholarship by elaborating on the causal–effectual distinction in network-building and offering internationalisation speed as an important and interesting outcome variable.

Globalization has been facing a backlash. By contrast, entrepreneurship has come to be seen as a panacea for economic development and generating jobs that are perceived to be under threat from globalization. In this Perspectives paper, our central argument is that globalization and entrepreneurship must be viewed holistically, recognizing that globalization is an enabler of important entrepreneurship outcomes. We argue that networks created as a byproduct of globalization facilitate various forms of entrepreneurship. Interpersonal networks (e.g., diasporas) facilitate transnational entrepreneurship which can, in turn, reduce institutional distance between locations. Interorganizational networks (e.g., MNE-orchestrated ecosystems) facilitate technology entrepreneurship which reinforces the institutional work that gives rise to new technological domains and fields. Intergovernmental and civil society networks facilitate social entrepreneurship which helps redress institutional voids. Thus globalization can be a force for good by enabling forms of entrepreneurship that enable important institutional change. We highlight the importance of paradox thinking, which is rooted in ancient Chinese philosophy, in transcending an either/or perspective of globalization and entrepreneurship.

The Management and Organization Review (MOR) special issue on ‘Doing Qualitative Research in Emerging Markets’ aims to advance the quality, diversity, and understanding of qualitative research methods in management in the context of emerging markets. The value of qualitative research is increasingly embraced by management scholars thanks to its merits for building new theories and testing existing ones, as well as exemplifying new phenomena by surfacing contextual idiosyncrasies (Bansal & Corley, 2011; Birkinshaw, Brannen, & Tang, 2011; Eisenhardt & Graebner, 2007; Rynes, 2007; Welch, Piekkari, Plakoyiannaki, & Paavilainen-Mantymaki, 2011). As Bansal and Corley (2011: 234) suggest ‘The beauty of qualitative research is that it accommodates different paradigms and different styles of research and research reporting. Although there are merits to having norms emerge for the style of qualitative research manuscripts, we do not want to stifle creativity’.

In this conceptual paper, we ask: How does the larger cultural context influence the way that groups of managers deal with paradoxical tensions in strategy episodes? We focus on three sources of tension in the conduct and design of strategy episodes – inclusion, formality and coordination/communication. We argue that in each case, cultural influences affect the extent to which these facets of strategy episodes are dealt with using a paradox lens. Specifically, in Western cultural contexts, managers tend to have a lower proclivity for adopting a paradoxical frame resulting in a separation of tensions in strategy episodes; by contrast, managers in Eastern cultural contexts such as China more readily adopt a paradoxical frame, and embrace tensions in strategy episodes. We suggest that, over time, non-paradoxical thinking likely promotes inter-episode plurality and planned emergence, while paradoxical thinking tends to foster intra-episode plurality and emergent planning. We contribute to a deeper understanding of strategy episodes as culturally embedded practices.

Decision making has been studied from various angles and perspectives. Despite much progress, the role of paradox and the ways it reveals itself in decision making has received little attention. Perhaps, part of the reason is that paradox has been studied in the West based on the analysis of Western managers’ activities while neglecting the fact that in the East, and especially in China, paradox has always been integral to managerial decision making. This “viewpoint” article seeks to highlight China as an important research setting that could add impetus to the study of paradox and decision making. It sheds light on questions such as: What do we know about paradox today and how do Western scholars treat this notion? What does research say about decision making in China? Is there a potential to get a better understanding of the concepts of paradox if study it in decision making in China?.

We advance a multifaceted and spatially anchored account of the who, the how, and the where of global interfirm networks through our novel conceptualization of the division of entrepreneurial labor between multinational enterprises (MNEs) and small and medium-size enterprises (SMEs). The capability dimension pertains to the differential capability sets of SMEs and MNEs in exploration and exploitation, respectively (the who). The connectivity dimension posits network orchestration/participation and dialogue as differentially addressing the distinct facets of interdependence—viz., mutual dependence and power imbalance, respectively (the how). The contextuality dimension concerns the differential approaches adopted in advanced versus emerging economies (the where).

This study examines the evolution of institutional logics and private firm financing practices in Ningbo, a commercial seaport city in China where the private sector has prospered for centuries, during 1912–2008. We argue that a three-fold institutionalisation process becomes evident when we view changes since 1912; namely institutionalisation, deinstitutionalisation and reinstitutionalisation of entrepreneurship and the associated financing of private firms. Two competing institutional logics, community and market logics, with the former being dominant but gradually giving way to the latter over time in the first stage (the Republican era of China), were eliminated in the second stage (the centrally-planned economy era), but have re-emerged and co-existed in the third stage (the economic reform era). However, unlike in the past, community logic is now subordinate and informal rather than dominant and formal, indicating that, although cyclical patterns are observed, institutional paths are not uni...

Owing to the lack of a track record, new ventures, by definition, tend to lack a strong reputation and often resort to reputation borrowing by affiliating with high-reputation actors. We study how entrepreneurial reputation-borrowing works in a context where reputation sources are scarce. We undertook an in-depth field study of a new venture in an emerging economy setting – specifically in Bangalore, India, at a time when a nascent entrepreneurial ecosystem was emerging. We examine the process and consequences of reputation-borrowing for this venture, which forged a relationship with a large Western multinational after entering a prestigious academic incubator. In terms of the process, we highlight the importance of high-status institutional intermediaries such as incubators in reputation-deficient contexts. In relation to the consequences, our study surfaces a tension: since successfully borrowing reputation is relatively rare in emerging economy settings, it may lead to hubris and (subsequent) lapses in judgment vis-a-vis the venture’s own altercentric uncertainty. Given this prospect of a “liability of a good reputation”, entrepreneurial reputation-borrowing in an emerging economy may need to be “handled with care” – in terms of reducing a new venture’s own uncertainty reduction during the process and not letting down its guard after reputation has been borrowed.

Multinational companies (MNCs) have traditionally conducted R&D and other innovation activities in developed countries. At the same time, most local companies in emerging markets (EMs) have traditionally imitated and adapted rather than innovated. But recent years have seen a new phenomenon of MNCs conducting R&D activities in emerging markets, and EM companies becoming significant innovators. This chapter examines the reasons for this change, especially the increases in EMs of science and technology capability, per capita incomes, customer sophistication, unique local needs, and market size. The chapter examines the innovation activities of both local and foreign companies, focusing on the two most dynamic EMs, China and India, as well as briefly reviewing other major EMs such as Brazil, Russia, Turkey, and South Africa. It concludes that innovation in EMs for both home and foreign markets is now an established and growing factor in international business.

The focus of this chapter is on local firms in emerging markets as participants in global value chains (GVCs), and how some of them make the transition from local assembler to value chain. The purpose of this chapter is not to provide a comprehensive literature review; rather, the authors discuss key GVC concepts that are relevant to their focus. The chapter begins with an overview of the GVC notion highlighting the issues of governance and upgrading. Next, it briefly reviews the following key drivers of GVCs in emerging markets: level of economic development, maturity of institutions, science and technology level, and company management capabilities. The authors then highlight the rise of EM firms within GVCs in three phases: (1) local assemblers, (2) component manufacturers, and (3) value-adding innovators and partners. The chapter closes with a discussion on the implications for international theory and future research, noting the rise of anti-globalization sentiments and the imperative for innovation within GVCs.

We develop a nuanced perspective of the influence of social capital on the internationalization of new ventures, drawing from cluster studies in economic geography and migration studies in economic sociology. It is well understood that social ties influence the internationalization trajectory of new ventures. However, economic geography suggests that whether a firm is located within a cluster or not can have a significant impact on its networking behaviour. In a similar vein, studies on global migration suggest ethnicity plays a significant role in how people build social capital to gain tacit information and legitimacy across borders. We integrate these dimensions into the study of international entrepreneurship, and attempt to distinguish between the roles of ethnic and non-ethnic ties in new venture internationalization. Using survey data from 102 Indian software new ventures, we find a puzzling observation: While ventures outside clusters build more ethnic ties, it is ventures within clusters that are able to leverage such relationships for international growth. Furthermore, non-ethnic ties are found to be more significant for international growth than are ethnic ties. We follow up the quantitative analysis with an in-depth qualitative study to provide additional explanations. We discuss the implication of these findings for both theory and practice, and propose further research to explore the interaction of diaspora and network effects on new venture internationalization.

While host-country relationships are known to help new ventures internationalize, we know little about how a firm’s home-country relationships affect its subsequent internationalization. We develop new theoretical arguments by combining social capital theory with reference group theory, to suggest that internationalization is in general adversely affected by home-country relationships, but facilitated by a specific networking strategy viz. of joining an aspirational local industry group in the home market. Based on a mixed-method study, with quantitative analysis of 102 Indian software firms and a longitudinal study of four firms, we find support for our arguments. Our process-based qualitative findings provide useful insights into the way new venture founders actually make sense of their relationship-building activities in the pursuit of international growth. A particularly novel facet here is the aspiration-building part of the process that is suggested by reference group theory, which has not been previously analyzed in the international business context.

In this paper we pose the question: How does the decision making process of Chinese managers differ from that of Western managers? Integrating Chinese notions of thinking with the stages of decision making process, our central argument is that in contrast to Western managers, Chinese managers are more likely to identify problems collectively (rather than set goals individualistically), synthesize conflicting alternative views (rather than analyze mutually exclusive alternatives), and arrive at non-binding solutions (instead of committing to a unique solution). We offer a depiction of the decision making process of Chinese managers, which we show to differ fundamentally from that of Western managers.

We examine the international new venture - multinational enterprise interface, specifically the extent and nature of entrepreneurial partnering actions undertaken by internationalization-seeking new ventures vis-a-vis MNEs as an internationalization pathway. Based on three longitudinal cases in the Bangalore software industry, we identify three distinct internationalization pathways for new ventures based on their engagement with MNEs: passive, active and co-creation. These pathways exhibit increasing levels of new ventures’ entrepreneurial partnering actions and MNEs’ corresponding partnering initiatives. For both sets of firms to attain their respective ends, their strategies need to co-align through the appropriate partnering strategy and interface, which reflect these actors’ respective strategies and the “effortful” nature of INV-MNE engagement. Furthermore, we highlight that the state of the local milieu plays a vital contingency role by being more conducive to certain pathways than to others.

Who should a new venture ally with in order to enhance its internationalization capabilities? While peer relationships come easily and naturally for most new ventures, interactions with foreign multinational subsidiaries operating in their local environment are complex to build and to sustain. We contribute to the relational perspective of new venture internationalization by specifically contrasting the role of new venture ties with multinational enterprises (MNEs), from those with other peer firms. We draw on a multi-method study, integrating a quantitative study based on a survey of 102 software firms in India and a longitudinal case analysis of the relationship between an international new venture (INV) and an MNE (Microsoft). We find a positive relationship between local MNE ties and internationalization capability, and a negative relationship between ties with other small firms and internationalization capability. Our post-hoc analysis of the case study serves to shed further light on this, highlighting an important caveat to the relational capital story: building ties with MNEs is necessary but not sufficient for new ventures to internationalize; they require managerial action to exploit the knowledge acquired.

The authors aim to advance extant understanding of the dynamics of firms operating abroad by considering the effects of innovation (research-and-development intensity, product and process innovations) on exports (breadth and depth), and vice versa. The study analyzes a panel data set of 696 Spanish manufacturing firms during 1994–2005 using Tobit and logit regressions and the Granger test of causality to offer a more complete picture of this complex relationship. They find broad support for the notion that innovation and exports have a reciprocal causal relationship, although the findings are partly nuanced by positive but nonsignificant associations between product innovation and exports and between export depth and process innovation. Furthermore, both export and innovation processes Granger-cause each other, demonstrating that there is a double causal relationship.

Drawing on the distinction between the ostensive aspects (abstract patterns) and performative aspects (specific actions) of organizational routines, the paper offers a micro-level explanation of capability learning in international new ventures (INVs), that is, firms that internationalize actively from inception. The paper argues that variability in the performative aspects of internationalization routines is associated with improvisational learning and new capability development, whereas variability in the ostensive aspects is associated with trial-and-error learning and existing capability improvement. Furthermore, psychic distance moderates these relationships. Low psychic distance facilitates both improvisation and trial-and-error learning; high psychic distance frustrates learning of both types. Moderate psychic distance makes the success of both learning forms more likely – but only for more experienced INVs. The paper also argues that social capital may mitigate the negative effects of high psychic distance. It contributes to the extant literature by providing a micro-level explanation of how INVs accomplish capability learning and avoid wasteful learning efforts, and by theorizing the moderating effects of psychic distance on the relationships between routine microprocesses and capability learning.

PurposeThe accumulation of knowledge and learning by firms has been identified as being critical to their internationalisation. This paper aims to explore the knowledge assimilation processes of rapidly internationalising small to medium‐sized enterprises (SMEs).Design/methodology/approachThis is a qualitative enquiry in two stages. First, four case studies were selected from firms that were participating in an internationalisation programme run by Scottish Enterprise, the regional development agency. Data collection involved semi‐structured interviews with chief executive officers (CEOs) and programme providers, and archival data. Second, two focus groups were held with six CEOs participating in the programme.FindingsThe findings indicate that knowledge sharing is important for rapidly internationalising SMEs and that firms adopted high levels of formality in assimilating knowledge. Two key aspects of formality were identified as important; formal planned events to share explicit and tacit knowledge and the codification of tacit to explicit knowledge. Knowledge may be assimilated less formally by the retention of tacit knowledge as tacit, while utilising elements of formality. The paper finds that learning for internationalisation can be transferred to support domestic growth.Practical implicationsIt is important for firms to develop appropriate knowledge assimilation processes within their management systems to support internationalisation. The CEO and management team need to take the lead in marshalling commitment to learning processes and in cultivating an organisational culture that is supportive of learning.Originality/valueThis research contributes to international entrepreneurship by providing insights into the knowledge assimilation processes employed by rapidly internationalising SMEs to manage the tensions between the need for greater formality to be efficient at learning, and informality to enable speedy decision making.

We conceptualize a learning–based model of international new ventures (INVs)’ post–entry internationalization speed focusing upon two measures: country scope speed and international commitment speed. We contribute to a deeper understanding of the pace of international expansion of the new venture once it has become an INV by articulating the role of (1) the speed of learning, influenced by social capital and absorptive capacity, and (2) the content of learning represented by knowledge accumulation. We also offer a more refined perspective on organizational learning, which indicates that different stages in the process of exploitative learning require different forms of social capital.

‘Micromultinationals’ are small to medium-sized enterprises (SMEs) that use higher-commitment entry modes beyond exporting. The study extends the micromultinational notion by addressing the question: what enables some internationalizing SMEs to become micromultinationals rather than pure exporters? Adopting a connectionist and bonding perspective, its focus is on cross-border coethnic ties as a valuable source of social capital. A survey of 102 Indian software SMEs indicates that higher stocks of cross-border coethnic social capital facilitate the adoption of higher-commitment entry modes by micromultinationals. Also, micromultinationals have a significantly higher degree of internationalization (the percentage of sales from foreign sources) than pure exporters.

Despite the widespread use of strategy workshops in organizations, few empirical studie examine this phenomenon. The limited research that exists also lacks a theoretical basi for explaining why some workshops achieve their espoused purpose while others do not We offer a theoretical model of strategy workshop dynamics and outcomes by drawin on theories of ritual and ritualization. Our central argument is that variations in charac teristics of ritualization such as the degree of removal, the use of liturgy and the role o specialists influence behavioural dynamics within workshops and thereby the extent t which their purpose is achieved. This perspective extends research on the episodic natur of strategy development and contributes to a theoretically informed view of strategy practices

In this conceptual paper, our overarching research question is: How does the larger cultural context influence the way that managers deal with paradoxes in strategy episodes? Our specific focus is ...

This conceptual paper is concerned with exploratory innovation efforts undertaken by new ventures with a view to achieving internationalization outcomes. The literature appears to overlook the prospect that even in technology-intensive sectors, new ventures may possess, at the outset, a product offering that is not fully conducive for international market entry and yet may detect opportunities for achieving international growth. Thus a two-fold challenge may exist – first, to develop a more suitable offering for international markets and second, to internationalize. A useful way of holistically conceptualizing the phenomenon is as a manifestation of strategic renewal. It is argued that bridging social capital derived through non-redundant ties with dissimilar actors could facilitate strategic renewal. The relational and cognitive dimensions of bridging social capital may be hard to develop but are potentially very important facilitators of this process.

A number of small enterprises are affected—often in dramatic ways—by the increasing presence of MNCs in their home markets. Small enterprise often find themselves facing a very difficult set of choices as they consider whether and how they should engage with the MNCs. This article critically evaluates the strategies smaller enterprises are adopting in a globalizing world. The most effective strategy for globalization is through partnerships with local MNC subsidiaries—in their own backyard—which can then be leveraged to generate opportunities on a global scale. This analysis particularly emphasizes the need for small enterprises to use to their advantage the points of difference (i.e., asymmetry) between them and the MNCs with whom they partner.

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