session 6

Question 1

Fan, T. and Phan, Ph. (2007). International new ventures: revisiting the influences behind the ‘born-global firm’.

Process theory / stages model / Uppsala model state

Global new ventures states

Answer 1

1. First start home
2. Gradual process
3. Less risky (export first)
4. Risk avoidance
5. Get international experience over time
6. Profit maximizing decision, so not for everybody
7. (model)

Question 2

Zahra, S.A., Ireland, R.D. and Hitt, M.A. 2000. International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technological Learning, and Performance

basic model

Facilitated by

Dimensions of

also depends on:

Answer 2

• Exploit existing capabilities Develop new capabilities
Example: McDonalds wrap from Europe

Facilitated by knowledge integration
Dimensions of 
1.	breadth 
2.	depth 
3.	speed
also depends on:
1.	type of control mode
2.	international diversity

Question 3

Sapienza, H.J. Autio, E., George G. and Shaker A. Zahra 2005. A Capabilities Perspective on the Effects of Early Internationalization on Firm Survival and Growth.

Answer 3

• International expansion (+ growth -survival)
o liability of newness makes this effect even stronger since they are more flexible to learn
 but, lower competency trap
Organizational imprinting – the earlier a firm internationalizes = stronger capabilities of exploiting opportunities in foreign markets

(age at initiation) - -
(managerial experience) - +
(resource fungivility) - +