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Article
Publication date: 30 July 2018

Nishant Kumar and Dharam Deo Sharma

The purpose of this paper is to explore how organisational culture affects the internationalisation proclivity of international new ventures (INVs).

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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.

Details

International Marketing Review, vol. 35 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

Article
Publication date: 5 August 2014

Sara Melén Hånell, Emilia Rovira Nordman and Dharam Deo Sharma

This paper aims to explore longitudinally a life sciences international new venture’s (INV’s) development of foreign market knowledge (FMK) and how this knowledge development…

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Abstract

Purpose

This paper aims to explore longitudinally a life sciences international new venture’s (INV’s) development of foreign market knowledge (FMK) and how this knowledge development relates to the firm’s entrepreneurial orientation (EO).

Design/methodology/approach

The article adopts a longitudinal case study approach to investigate an INV in the life sciences industry.

Findings

The findings show that the EO of an INV changes during its internationalisation. A strong EO, often considered to be synonymous with the early expansion of an INV, is not always able to guide the INV in its later developmental stages. In its continued internationalisation, an INV instead needs firm-specific FMK accumulated from a process of learning by doing. The knowledge development of an INV is a time-consuming process that cannot be rushed by grafting new and experienced employees.

Research limitations/implications

Future research focusing on larger and broader samples of INVs is recommended to validate this study’s results.

Practical implications

Life sciences managers need to develop their own firm-specific FMK by interacting with their foreign business partners.

Originality/value

This study contributes further insights into the FMK development processes and EO of INVs in the life sciences industry during their internationalisation. Further understanding is also provided about how the industry-specific features of an INV in the life sciences industry influence internationalisation over time. The study’s theoretical implications are that international entrepreneurship frameworks and internationalisation process theory need to be integrated to understand the longitudinal development of INVs.

Details

European Business Review, vol. 26 no. 5
Type: Research Article
ISSN: 0955-534X

Keywords

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