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Untangling the relationship between new venture internationalization and performance

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  • Stephanie Fernhaber

Abstract

To help untangle the inconsistency in prior performance studies for new venture internationalization, the dynamic capabilities perspective is revisited to consider whether the relationship is more complex than previously assumed. While internationalization requires the reconfiguration of routines and resources, survivability is argued to peak at moderate levels of internationalization where the associated resources and risk is balanced between local and foreign markets. In contrast, sales growth is suggested to peak at either low or high levels of internationalization where a singular market focus and set of capabilities is being exploited. The results confirm that the level of new venture internationalization exhibits an inverted U-shaped relationship with survival, while the opposite U-shaped relationship exists with sales growth. Copyright Springer Science+Business Media New York 2013

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  • Stephanie Fernhaber, 2013. "Untangling the relationship between new venture internationalization and performance," Journal of International Entrepreneurship, Springer, vol. 11(3), pages 220-242, September.
    • Handle: RePEc:kap:jinten:v:11:y:2013:i:3:p:220-242
    DOI: 10.1007/s10843-013-0104-2
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    1. Christian Schwens & Florian B. Zapkau & Michael Bierwerth & Rodrigo Isidor & Gary Knight & Rüdiger Kabst, 2018. "International Entrepreneurship: A Meta–Analysis on the Internationalization and Performance Relationship," Entrepreneurship Theory and Practice, , vol. 42(5), pages 734-768, September.
    2. Tobias Pehrsson & Navid Ghannad & Anders Pehrsson & Tobias Abt & Siyuan Chen & Fabian Erath & Tobias Hammarstig, 2015. "Dynamic capabilities and performance in foreign markets: Developments within international new ventures," Journal of International Entrepreneurship, Springer, vol. 13(1), pages 28-48, March.
    3. Farhad Uddin Ahmed & Louis Brennan, 2021. "A review of methodological diversity within the domain of international entrepreneurship," Journal of International Entrepreneurship, Springer, vol. 19(2), pages 256-299, June.
    4. Hosseini, Mojtaba & Brege, Staffan & Nord, Tomas, 2018. "A combined focused industry and company size investigation of the internationalization-performance relationship: The case of small and medium-sized enterprises (SMEs) within the Swedish wood manufactu," Forest Policy and Economics, Elsevier, vol. 97(C), pages 110-121.
    5. Daniele Cerrato & Mariacristina Piva, 2015. "The Effect of Global Orientation on the Performance of International New Ventures: Evidence from Italy," Management International Review, Springer, vol. 55(6), pages 857-883, December.
    6. María Agustí & Olli Kuivalainen & Encarnación Ramos-Hidalgo & Francisco J. Acedo, 2023. "Maturing international new ventures: Short- and medium-term Insights," Journal of International Entrepreneurship, Springer, vol. 21(3), pages 329-353, September.
    7. Angélique Breuillot, 2021. "Exploring the Role of Diversity Management During Early Internationalizing Firms’ Internationalization Process," Management International Review, Springer, vol. 61(2), pages 125-156, April.
    8. Pawe³ Pietrasieñski, 2014. "“4Cs” PUBLIC GOVERNANCE MODEL FOR POLICIES STIMULATING THE INTERNATIONALIZATION OF COMPANIES," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 10(2), pages 161-171, December.
    9. Acedo, Francisco J. & Coviello, Nicole & Agustí, María, 2021. "Caution ahead! The long-term effects of initial export intensity and geographic dispersion on INV development," Journal of World Business, Elsevier, vol. 56(6).
    10. Yan, Jiaju & Williams, D.W., 2021. "Timing is everything? Curvilinear effects of age at entry on new firm growth and survival and the moderating effect of IPO performance," Journal of Business Venturing, Elsevier, vol. 36(5).

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