Understanding Internationalization Potentials: Explaining International New Ventures and their Stay-Domestic Counterparts

• Main Author: FAN, Terence Ping Ching
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2008
• Subjects: International new ventures; born-globals; international entrepreneurship; International Business; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/1829
• Institution: Singapore Management University

To bridge the theoretical gap between the new breed of firms known as international new ventures or ‘born-globals’, this paper proposes a conceptual framework that explains how the characteristics of a product from a new venture directly influence its internationalization potential. Domain specificity and culture specificity are the two proposed dimensions of this framework. Products of different domain and culture specificities incur different risks (or costs) of accessing international markets that are culturally different from the home country market of the producers – with some products favouring instant or early internationalization, while others favouring a stay-domestic strategy. This framework removes the need to treat international new ventures as a distinctly new breed of firms a priori in the international business literature.