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Why do some international new ventures become global start-ups? An exploratory study of the Finnish ICT industry

Research on Knowledge, Innovation and Internationalization

ISBN: 978-1-84855-956-1, eISBN: 978-1-84855-957-8

Publication date: 31 October 2009

Abstract

Purpose – This study analyzes international new ventures (INVs) by means of the classification developed by Oviatt and McDougall (1994): global start-ups (GSUs) are compared with other types of INVs.

Design/methodology/approach – The empirical data for the study were collected via a Web-based survey of Finnish ICT companies. Particular emphasis was placed on the operationalization of the key constructs as well as on the sample formation, in which both the number of international markets served and the coordination of international activities were taken into consideration.

Findings – The findings of this study indicate that GSUs are particularly driven by the international growth orientation of the top management. They also seem to perform better than other types of INVs.

Practical implications – From the managerial point of view, the findings of this study indicate that managers of INVs should be encouraged to internationalize their value chain as a whole, despite the risks. However, those managers making these decisions should also be aware of the capabilities needed for managing the global value networks they create.

Originality/Value – This exploratory study reveals that studying INVs from a holistic perspective – including both inward and outward activities – produces interesting findings and opens new avenues for future research. This theme clearly deserves more attention. Our classification of INVs into smaller subgroups also proved to be fruitful, not least concerning GSUs.

Citation

Nummela, N., Puumalainen, K. and Saarenketo, S. (2009), "Why do some international new ventures become global start-ups? An exploratory study of the Finnish ICT industry", Larimo, J. and Vissak, T. (Ed.) Research on Knowledge, Innovation and Internationalization (Progress in International Business Research, Vol. 4), Emerald Group Publishing Limited, Leeds, pp. 21-40. https://doi.org/10.1108/S1745-8862(2009)0000004006

Publisher

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Emerald Group Publishing Limited

Copyright © 2009, Emerald Group Publishing Limited