International business opportunity recognition and development

Abstract

Purpose

Understanding how international business opportunities (IBOs) are recognized and developed is critical to the study of international entrepreneurship.

Design/methodology/approach

We draw on entrepreneurial cognition research broadly and the entrepreneurial judgment perspective specifically to develop a model of the recognition and development of IBOs by considering three theoretically important sets of drivers – social networks, international experience and a proactive mindset. We use a sample of 92 small- and medium-sized enterprises (SMEs) to test the model empirically.

Findings

We find robust support. Entrepreneurial judgment surrounding IBOs and uncertain international business environments entails tapping social networks, international experience and a proactive mindset to both recognize third-person opportunities for someone as well as to act upon and develop IBOs as first-person opportunities from which a focal firm can profit.

Originality/value

Conceptually and empirically, we peer inside the black box of IBO entrepreneurial judgment processes by jointly evaluating the abstract recognition of third-person opportunities as well as the concrete actions and interactions that develop the IBOs into first-person opportunities.

Citation

Di Gregorio, D., Musteen, M.C. and Thomas, D. (2022), "International business opportunity recognition and development", International Journal of Entrepreneurial Behavior & Research, Vol. 28 No. 3, pp. 628-653. https://doi.org/10.1108/IJEBR-03-2021-0227