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Empirical Research on Early Internationalization of Firms in Sufficiently-Sized Domestic Market Country

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  • Saki Otomo

    (Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan)

  • Shuichi Ishida

    (Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan)

  • Mariko Yang-Yoshihara

    (Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan
    Freeman Spogli Institute for International Studies (FSI), Stanford University, 616 Jane Stanford Way, Encina Hall E005, Stanford, CA 94305-2004, USA)

Abstract

Early internationalization and success in foreign markets play an important role in both a firm’s growth and its impact on the global economy. We conducted a study on Japanese high-tech startups to investigate the factors that derive early internationalization in firms founded in countries with a large domestic market, despite the absence of strong incentives to operate overseas. Quantitative data were collected from 71 startups and analyzed with PLS-SEM (Partial least squares path modeling). Our result showed that the factors we extracted from the previous studies on the internationalization process in small-size markets would also apply in countries with large domestic markets. In addition, considerations and the types of technology, which we extracted from qualitative research, verified the effect. According to our mediator analysis, an entrepreneur’s international orientation explains certain conditions related to a domestic market that affect a firms’ decision to pursue early internationalization. Our study makes contributions at multiple levels, benefiting entrepreneurs who are considering overseas expansion as well as policymakers who aim to promote early internationalization efforts.

Suggested Citation

  • Saki Otomo & Shuichi Ishida & Mariko Yang-Yoshihara, 2023. "Empirical Research on Early Internationalization of Firms in Sufficiently-Sized Domestic Market Country," Administrative Sciences, MDPI, vol. 13(4), pages 1-13, April.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:4:p:107-:d:1116447
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    References listed on IDEAS

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    1. Hsieh, Linda & Child, John & Narooz, Rose & Elbanna, Said & Karmowska, Joanna & Marinova, Svetla & Puthusserry, Pushyarag & Tsai, Terence & Zhang, Yunlu, 2019. "A multidimensional perspective of SME internationalization speed: The influence of entrepreneurial characteristics," International Business Review, Elsevier, vol. 28(2), pages 268-283.
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    3. Jan Johanson & Finn Wiedersheim‐Paul, 1975. "The Internationalization Of The Firm — Four Swedish Cases 1," Journal of Management Studies, Wiley Blackwell, vol. 12(3), pages 305-323, October.
    4. Ram Mudambi & Shaker A Zahra, 2007. "The survival of international new ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(2), pages 333-352, March.
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