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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. Xin Su & Shengshi Zhou & Rui Xue & Jinfang Tian, 2020. "Does economic policy uncertainty raise corporate precautionary cash holdings? Evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4567-4592, December.
    4. 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.
    5. Jason Lortie & Kevin C. Cox & Curtis Sproul, 2021. "Toward a theory of entrepreneurial differentiation: how entrepreneurial firms compete," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1291-1312, September.
    6. Krzysztof Wach, 2016. "Innovative Behaviour of High-Tech Internationalized Firms: Survey Results from Poland," Entrepreneurial Business and Economics Review, Centre for Strategic and International Entrepreneurship at the Cracow University of Economics., vol. 4(3), pages 153-165.

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