Entrepreneurial strategic posture and learning effort in international ventures: The moderating roles of operational flexibilities

Abstract Drawing from the attention-based view, this article extends the study of international entrepreneurship by investigating how the contribution of international ventures’ entrepreneurial strategic posture to their actual learning efforts in foreign markets depends on various flexibilities that underlie their operations. The results from a sample of international Chinese ventures indicate that an entrepreneurial strategic posture enhances international learning effort more to the extent that the ventures possess greater cognitive and political flexibilities. Somewhat paradoxically, greater structural flexibility impedes the translation of an entrepreneurial strategic posture into international learning effort. The findings have important implications for the growing body of research that adopts an international new venture perspective.

[1]  V. Nee Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China , 1992 .

[2]  Andreu Blesa,et al.  The effect of early international commitment on international positional advantages in Spanish and Belgian international new ventures , 2008 .

[3]  O. Shenkar,et al.  Cultural distance revisited: Towards a more rigorous conceptualization and measurement of cultural differences , 2001 .

[4]  Gerald R. Ferris,et al.  Perceptions of Organizational Politics Scale (POPS): Development and Construct Validation , 1991 .

[5]  J. Mentzer,et al.  The Effects of Entrepreneurial Proclivity and Market Orientation on Business Performance , 2002 .

[6]  D. Slevin,et al.  Strategic management of small firms in hostile and benign environments , 1989 .

[7]  S. Zahra,et al.  A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth , 2006 .

[8]  D. Sharma,et al.  Domestic Activity and Knowledge Development in the Internationalization Process of Firms , 2004 .

[9]  Martin Gargiulo,et al.  Trapped in Your Own Net? Network Cohesion, Structural Holes, and the Adaptation of Social Capital , 2000 .

[10]  Dirk De Clercq,et al.  When good conflict gets better and bad conflict becomes worse: the role of social capital in the conflict–innovation relationship , 2009 .

[11]  Daniel A. Levinthal,et al.  ABSORPTIVE CAPACITY: A NEW PERSPECTIVE ON LEARNING AND INNOVATION , 1990 .

[12]  Mark P. Sharfman,et al.  Does Decision Process Matter? A Study Of Strategic Decision-making Effectiveness , 1996 .

[13]  D. Clercq,et al.  Antecedents of international and domestic learning effort , 2005 .

[14]  Eric Wood,et al.  Organizational entrainment and international new ventures from emerging markets , 2010 .

[15]  J. Johanson,et al.  The Mechanism of Internationalisation , 1990 .

[16]  A. N. Kiss,et al.  International entrepreneurship research in emerging economies: A critical review and research agenda , 2012 .

[17]  W. Ocasio TOWARDS AN ATTENTION-BASED VIEW OF THE FIRM , 1997 .

[18]  N. Nummela,et al.  Strategic orientations of born globals—Do they really matter? , 2008 .

[19]  B. Elango,et al.  Building capabilities for international operations through networks: a study of Indian firms , 2007 .

[20]  Dirk De Clercq,et al.  The moderating impact of internal social exchange processes on the entrepreneurial orientation–performance relationship , 2010 .

[21]  Mike W. Peng,et al.  Managerial Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link , 2000 .

[22]  Bradley R. Barnes,et al.  The Effects of Early Internationalization on Performance Outcomes in Young International Ventures: The Mediating Role of Marketing Capabilities , 2012 .

[23]  G. Knight,et al.  Innovation, organizational capabilities, and the born-global firm , 2004 .

[24]  Daniel A. Levinthal,et al.  The myopia of learning , 1993 .

[25]  Marcus M. Keupp,et al.  The Past and the Future of International Entrepreneurship: A Review and Suggestions for Developing the Field , 2009 .

[26]  J. Ebben,et al.  Efficiency, flexibility, or both? Evidence linking strategy to performance in small firms , 2005 .

[27]  Kent Eriksson,et al.  Experiential Knowledge and Costs in the Internationalization Process , 1997 .

[28]  P. Green,et al.  Analyzing multivariate data , 1978 .

[29]  Nicole Coviello,et al.  International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis , 2011 .

[30]  D. Leonard-Barton CORE CAPABILITIES AND CORE RIGIDITIES: A PARADOX IN MANAGING NEW PRODUCT DEVELOPMENT , 1992 .

[31]  J. Stevens Applied Multivariate Statistics for the Social Sciences , 1986 .

[32]  A. Coughlan,et al.  International Market Entry and Expansion via Independent or Integrated Channels of Distribution , 1987 .

[33]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[34]  S. West,et al.  Multiple Regression: Testing and Interpreting Interactions. , 1994 .

[35]  Lianxi Zhou The effects of entrepreneurial proclivity and foreign market knowledge on early internationalization , 2007 .

[36]  John Child,et al.  The Internationalization of Chinese Firms: A Case for Theoretical Extension? , 2005 .

[37]  R. Warner Applied Statistics: From Bivariate through Multivariate Techniques [with CD-ROM]. , 2007 .

[38]  H. Barkema,et al.  International Expansion Through Start-Up or Acquisition: A Learning Perspective , 1998 .

[39]  G. Bruton,et al.  Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future , 2007 .

[40]  G. Knight,et al.  Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective , 2007 .

[41]  S. Zahra,et al.  Cognition and international entrepreneurship: implications for research on international opportunity recognition and exploitation , 2005 .

[42]  Jinhong Xie,et al.  Antecedents and Consequences of Marketing Managers’ Conflict-Handling Behaviors , 2000 .

[43]  Nicole Coviello,et al.  Internationalisation: conceptualising an entrepreneurial process of behaviour in time , 2005 .

[44]  Yi Feng,et al.  Determinants of economic growth in China: Private enterprise, education, and openness , 2000 .

[45]  Henk W. Volberda,et al.  Exploratory Innovation, Exploitative Innovation and Peformance: Effects of Organizational Antecedents and Environmental Moderators , 2006, Manag. Sci..

[46]  James C. Anderson,et al.  STRUCTURAL EQUATION MODELING IN PRACTICE: A REVIEW AND RECOMMENDED TWO-STEP APPROACH , 1988 .

[47]  M. Hitt,et al.  International expansion by new venture firms: International diversity, mode of market entry, technological learning, and performance. , 2000 .

[48]  R. Grant Toward a Knowledge-Based Theory of the Firm,” Strategic Management Journal (17), pp. , 1996 .

[49]  S. Saarenketo,et al.  The strategic orientations of rapidly internationalizing software companies , 2009 .

[50]  David J. Miller,et al.  The Correlates of Entrepreneurship in Three Types of Firms , 1983 .

[51]  Rosalie L. Tung,et al.  International expansion of emerging market enterprises: A springboard perspective , 2007 .

[52]  C. Katsikeas,et al.  Export Product Strategy Fit and Performance: An Empirical Investigation , 2009 .

[53]  David L. Deeds,et al.  What Drives New Ventures to Internationalize from Emerging to Developed Economies? , 2007 .

[54]  David A. Whetten,et al.  Albert and Whetten Revisited: Strengthening the Concept of Organizational Identity , 2006 .

[55]  D. De Clercq,et al.  Learning and knowledge in early internationalization research: past accomplishments and future directions , 2012 .

[56]  Srilata Zaheer,et al.  THE DYNAMICS OF THE LIABILITY OF FOREIGNNESS: A GLOBAL STUDY OF SURVIVAL IN FINANCIAL SERVICES , 1997 .

[57]  Mika Gabrielsson,et al.  Born globals: Propositions to help advance the theory , 2008 .

[58]  J. Johanson,et al.  EXPERIENTIAL KNOWLEDGE AND COST IN THE INTERNATIONALIZATION PROCESS , 1997 .

[59]  Howard E. Aldrich,et al.  Fools Rush in? The Institutional Context of Industry Creation , 1994 .

[60]  D. Slevin,et al.  A Conceptual Model of Entrepreneurship as Firm Behavior , 1991 .

[61]  M. Talias,et al.  Exercised power as a driver of trust and commitment in cross-border industrial buyer–seller relationships , 2008 .

[62]  Garry D. Bruton,et al.  International venturing by emerging economy firms: the effects of firm capabilities, home country networks, and corporate entrepreneurship , 2007 .

[63]  Bernard J. Jaworski,et al.  Market orientation: The construct, research propositions, and managerial implications. , 1990 .

[64]  E. Autio,et al.  Effects of Age at Entry, Knowledge Intensity, and Imitability on International Growth , 2000 .

[65]  Lowell W. Busenitz,et al.  Country Institutional Profiles: Unlocking Entrepreneurial Phenomena , 2000 .

[66]  Kwaku Atuahene-Gima,et al.  Using Exploratory and Exploitative Market Learning for New Product Development , 2010 .

[67]  W. Ocasio,et al.  An Attention-Based Theory of Strategy Formulation: Linking Micro- and Macroperspectives in Strategy Processes , 2005 .

[68]  G. Lumpkin,et al.  Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct , 2011 .

[69]  Lianxi Zhou,et al.  Entrepreneurial proclivity, capability upgrading and performance advantage of newness among international new ventures , 2010 .

[70]  Pino G. Audia,et al.  Less Likely to Fail: Low Performance, Firm Size, and Factory Expansion in the Shipbuilding Industry , 2006, Manag. Sci..

[71]  Roger R. Stough,et al.  The determinants of entrepreneurship development in China , 2006 .

[72]  R. Brislin Cross-cultural research methods , 1973 .

[73]  Suzanne Zyngier,et al.  A model of rapid knowledge development: The smaller born-global firm , 2010 .

[74]  K. Meyer,et al.  Entrepreneurship in Transition Economies , 2008, Oxford Handbooks Online.

[75]  Gregory G. Dess,et al.  Clarifying the Entrepreneurial Orientation Construct and Linking It To Performance , 1996 .

[76]  James M. Hulbert,et al.  Profiles of Product Innovators Among Large U.S. Manufacturers , 1992 .

[77]  S. Zahra A theory of international new ventures: a decade of research , 2005 .

[78]  Mika Gabrielsson,et al.  Network development and firm growth: A resource-based study of B2B Born Globals , 2013 .

[79]  P. Buckley,et al.  Risk and Uncertainty in Internationalisation and International Entrepreneurship Studies , 2011 .

[80]  Stephanié Rossouw,et al.  Early international entrepreneurship in China: Extent and determinants , 2010 .

[81]  Heng Liu,et al.  Strategic Flexibility and International Venturing by Emerging Market Firms: The Moderating Effects of Institutional and Relational Factors , 2013 .

[82]  G. Hofstede,et al.  Cultures and Organizations: Software of the Mind , 1991 .

[83]  S. Shane,et al.  Explaining the Formation of International New Ventures: The Limits of Theories from International Business Research , 1994 .

[84]  D. Patient,et al.  Toward a theory of intraorganizational attention based on desirability and feasibility factors , 2013 .

[85]  Ian Wilkinson,et al.  An Opportunity-Based View of Rapid Internationalization , 2012 .

[86]  P. Ellis,et al.  Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalization , 2011 .

[87]  James M. Sinkula,et al.  The synergistic effect of market orientation and learning orientation on organizational performance , 1999 .

[88]  Lawrence Gales,et al.  An Analysis of the Impact of Supplier Strategies and Relationships on Small Retailer Actions, Perceptions, and Performance , 1990 .

[89]  D. De Clercq,et al.  Organizational Social Capital, Formalization, and Internal Knowledge Sharing in Entrepreneurial Orientation Formation , 2013 .

[90]  J. Stevens,et al.  Applied Multivariate Statistics for the Social Sciences , 1993 .