The role of organisational culture in the internationalisation of new ventures
International Marketing Review
ISSN: 0265-1335
Article publication date: 30 July 2018
Issue publication date: 23 August 2018
Abstract
Purpose
The purpose of this paper is to explore how organisational culture affects the internationalisation proclivity of international new ventures (INVs).
Design/methodology/approach
In this paper, a resource advantage (R-A) framework is adopted to examine how organisational culture can be a resource for INVs to leverage efficiently and/or effectively in order to make up for their challenges in internationalisation and create value for their international customers. In doing so, this study makes use of examples of five INVs from India, which have successfully achieved international business prowess and superior performance immediately after their foundation.
Findings
The findings reveal that an organisational culture including continuous learning, creativity and innovation, collaboration and sharing, and customer-centricity as traits have a positive influence on INV internationalisation proclivity. Most importantly, fostering a culture of collaboration and sharing can help INVs address resource limitations and augment opportunity discovery in the international market. Furthermore, INVs can benefit more from the “learning advantages of newness” by nurturing continuous learning as part of their culture.
Research limitations/implications
A key limitation of this study is that all the firms selected here are from a single country, India, and it may have effects on the way firms leverage these cultural traits.
Practical implications
Founders of INVs should develop organisational arrangements that encourage openness, creativity, and allows employees to contribute freely and fearlessly through new ideas, process innovations, and so on, and firms should recognise such contributions regularly. INVs can adopt policies and develop mechanisms that encourage employees to share knowledge and resources freely with others in the organisation.
Social implications
Growth of INVs is closely linked to job creation and economic progress. Policy makers in emerging economies can benefit from this study by developing infrastructure and creating social conditions that support the survival and growth of INVs. Adopting the findings of this study could possibly help INVs succeed in international markets and avoid failures, and thus save societal resources.
Originality/value
The paper highlights the critical role of organisational culture in INVs’ internationalisation thrust. The paper develops testable propositions that delineate both the main effects as well as the other effects of organisational culture on INV internationalisation.
Keywords
Acknowledgements
The authors are highly obliged to the editor and six anonymous reviewers of the journal for their valuable feedback on this paper. The authors would also like to thank the respondents of the case firms; without their invaluable support this paper would not have been possible. Figure 1 is being used in this manuscript for illustration purposes only and with the permission of Sharon S. Andrew-Rajkumar, Director and Happiness Evangelist, Happiest Minds Technologies Private Limited. All rights of the picture remain with the owner company.
Citation
Kumar, N. and Sharma, D.D. (2018), "The role of organisational culture in the internationalisation of new ventures", International Marketing Review, Vol. 35 No. 5, pp. 806-832. https://doi.org/10.1108/IMR-09-2014-0299
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited