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Should Small, Young Technology–Based Firms Internalize Transactions in Their Internationalization?

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  • Lee Li
  • Gongming Qian
  • Zhengming Qian

Abstract

Small, young entrepreneurial firms’ governance structure across countries has generated an interesting debate in recent years. That is, should these firms internalize or externalize transactions in their internationalization? Existing studies suggest that there are advantages and disadvantages to both structures, but the findings are mixed. This study explores the factors that determine the governance structure of small, young technology–based entrepreneurial firms (SYTEFs). Evidence collected in this study indicates that choice of governance structure by SYTEFs is determined by a specific set of conditions, specifically, their choice of governance structure depends on their strategic assets, industry dynamism, and business scope.

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  • Lee Li & Gongming Qian & Zhengming Qian, 2015. "Should Small, Young Technology–Based Firms Internalize Transactions in Their Internationalization?," Entrepreneurship Theory and Practice, , vol. 39(4), pages 839-862, July.
    • Handle: RePEc:sae:entthe:v:39:y:2015:i:4:p:839-862
    DOI: 10.1111/etap.12081
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    3. Michał Młody, 2016. "Backshoring in Light of the Concepts of Divestment and De-internationalization: Similarities and Differences," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 167-180.
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