Essays on Entrepreneurial Challenges in the Global Economy

Date
2015-09-30
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Abstract
This dissertation includes four studies regarding early internationalization of new ventures (INVs) and entrepreneurial challenges faced by multinational enterprises (MNEs). The first study examines the antecedents of early internationalization in new ventures. Based on empirical evidence from the Kauffman Firm Survey data, I indicate that individual characteristics of the owners –education level, immigration status, and entrepreneurial capabilities- have a significant association with pursuing early internationalization strategy in new ventures. This finding reinforces the conceptual argument of the chapter that internalization theory can be applied to predict INV creation and behavior. The second study investigates the effects of R&D and internationalization activities on the performance of new ventures. Empirical results based on the aforementioned Kauffman database indicate that engagement in both R&D and internationalization activities is negatively associated with performance of new ventures. Moreover, R&D expenditure beyond a certain level is associated with lower performance; i.e. there is an inverse U shaped relationship between R&D and performance. The third study addresses the lack of sufficient entrepreneurship in multinational enterprises that seek to improve their ability to achieve national responsiveness. The main reason for this deficiency appears to be the transfer of proven routines from the home country, even when it is clear from the outset that these routines will simply not work, and will require much more than a quasi-mechanistic ‘adaptation’ to the new environment. The study emphasises that entrepreneurial alteration of the core business model through novel resource re-combinations is essential to the success of MNE foreign market entry. The fourth study follows-up with proposing a framework for business model alteration that can help MNEs overcome their entrepreneurial deficits when entering foreign markets. The last two studies also include illustrative case examples of firms that failed to sufficiently alter their business models when expanding to international markets.
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Business Administration--Management
Citation
Zargarzadeh, M. A. (2015). Essays on Entrepreneurial Challenges in the Global Economy (Doctoral thesis, University of Calgary, Calgary, Canada). Retrieved from https://prism.ucalgary.ca. doi:10.11575/PRISM/25945