International Entrepreneurship by A. Rebecca Reuber

Author:A. Rebecca Reuber
Language: eng
Format: epub, pdf
Publisher: Springer International Publishing, Cham

Discussion

The results of this study are discussed in two phases. We begin with a set of findings on the role of networks in the INV. Beginning at this level allows the results to be pattern-matched to the wider literature. The discussion then turns to the focus of the research: INV network dynamics. It is these findings that are used to develop propositions for further investigation.

At the general level, the results of this study suppor t Oviatt and McDougall’s (1994) arguments that networks will open doors for INVs by providing market access, financing, distribution channels, referrals and a pool of contacts for both internal and external development. Thus network relationships are intangible resources salient to organizational growth. This is consistent with the arguments o f Gulati et al. (2000) and the findings of Bergmann Lichtenstein and Brush (2001) a n d Andersson and Wictor (2003). As identified in this study, however, such resources are also essential pre-internationalization, pre-growth and even pre-commercialization, that is, from the very earliest stage of firm development: conception. This confirms the importance of early relationships for new ventures (Coviello & Munro, 1995, 1997; Sharma & Blomstermo, 2003) and supports Wiedersheim-Paul et al.’s (1978) o bservations regarding the impact of pre-export activity on international opportunities. That is, although internationalization did not occur until Stage II or III for the INVs in this study, it was in all cases the result of a tie established much earlier in the life cycle. Importantly, the ties instrumental in initial foreign market entry were economic rather than social. This contradicts the findings o f Ellis (2000), Ellis and Pecotich (2001) an d Harris and Wheeler (2005).

At the same time, the evidence presented here suggests that no one pattern explains the nature of ties in INV networks. Ties can be either social or economic, and either strong or weak. As an example, although initial internationalization may have been the result of economic ties, some social ties were also evident through network evolution. Examples of strong ties include Charlie’s long-term multiple ties with an influential multinational, and weak ties are evidenced in the pool of indirect short-term relationships that influenced Sierra. As seen with Tango, the catalytic tie for internationalization involved an introduction from a previous business colleague of one of the cofounders. The results suggest therefore that, although network ties are consistently found to facilitate INV evolution and also internationalization, they are not able to be easily categorized. Even with only three INVs, this finding is consistent with other case research on internationalization (Coviello & Munro, 1997; Sharma & Blomstermo, 2003) and large-scale survey findings (Jones, 1999).

The analysis also supports the arguments o f Larson and Starr (1993), because the INV’s network expanded through the evolution process. Accordingly, so too did INV network boundaries and horizons (consistent with Anderson et al., 1994). The networks also became more complex, in line wit h Larson and Starr (1993) an d Hite and Hesterly (2001). Furthermore, the attractiveness of certain ties (e.g., Charlie’s multinational partner) appears

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