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Are growth expectations being met? Implications for the internationalization of micro-sized ventures

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  • Marleen McCormick

    (Butler University)

  • Stephanie A. Fernhaber

    (Butler University)

Abstract

Despite the rapid growth of international entrepreneurship research in the last two decades, little attention has been paid to the internationalization of micro-sized ventures. Given the influence of the entrepreneur within these micro-sized ventures, an especially relevant question is how entrepreneurial perceptions impact international growth. Drawing on organizational learning and performance feedback theory, we hypothesize that entrepreneurs who perceive the venture to have either not met or to have exceeded growth expectations will subsequently internationalize more than entrepreneurs who perceive growth expectations to have simply been met. A sample of 226 international, micro-sized ventures from the Kauffman Firm Survey is used to test the hypotheses. The results confirm a U-shaped relationship between entrepreneurial perceptions and internationalization. The relationship is more pronounced among innovative micro-sized ventures than non-innovative ones. This study adds to the international entrepreneurship research stream with an emphasis on the entrepreneur and specifically highlights the role of perceptions.

Suggested Citation

  • Marleen McCormick & Stephanie A. Fernhaber, 2018. "Are growth expectations being met? Implications for the internationalization of micro-sized ventures," Small Business Economics, Springer, vol. 50(3), pages 591-605, March.
    • Handle: RePEc:kap:sbusec:v:50:y:2018:i:3:d:10.1007_s11187-017-9909-z
    DOI: 10.1007/s11187-017-9909-z
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    More about this item

    Keywords

    Internationalization; Entrepreneurial perceptions; Micro-sized ventures; Kauffman firm survey;
    All these keywords.

    JEL classification:

    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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