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Drivers and strategies of international new ventures from a Central European transition economy

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  • Nowinski, Witold
  • Rialp, Alex

Abstract

This paper contributes to SME internationalization theory by offering region-specific propositions on early internationalization of Central and Eastern European (CEE) firms. We suggest that special treatment of international new ventures from CEE transition economies is justified due to constraints faced by their founders, particularly not only limited financial resources but also relatively low human and social capital. We propose that some of the region-specific drivers which contribute to early internationalization involve domestic market entry barriers and arbitrage opportunities related to the higher purchasing power of consumers from developed economies. Additionally, we find that in order to overcome resource limitations, CEE international new ventures apply effectuation and bricolage to exploit controlled resources and flexibly adapt to the market situation.

Suggested Citation

  • Nowinski, Witold & Rialp, Alex, 2013. "Drivers and strategies of international new ventures from a Central European transition economy," Journal of East European Management Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 18(2), pages 191-231.
    • Handle: RePEc:nms:joeems:doi_10.1688/1862-0019_jeems_2013_02_nowinski
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    More about this item

    Keywords

    Internationalization; International new ventures; SMEs; Transition economies; Effectuation; Bricolage;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility
    • P30 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - General
    • P31 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Socialist Enterprises and Their Transitions

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