18417546
Social networks in the initiation of a high-tech firm's internationalisation
Entering foreign markets is often challenging for small firms due to the limited resources available for internationalisation. Through social networks, firms can gain access to and mobilise external resources in order to aid the initiation of internationalisation. The present study is concerned with the initiation of the internationalisation in small high-technology firms. The paper develops an empirically grounded framework for understanding the roles a social network can play in the initiation of internationalisation. The framework acknowledges personal relationships as sources of critical information about foreign business opportunities and potential international business partners. Moreover, social relationships can open doors in international business. This study brings forward the very active role that the social network can play as a mediator in the small firm's internationalisation. The mediation can provide the small firm publicity, contacts and legitimacy resulting in first international contacts and development of international business relationships.
154399305
Beyond anarchy and organization: entrepreneurs in contextual networks
Three phenomena have dominated the interface joining research, management practice and public industrial policy during the 1980s: the revival of industrial districts, the creation of science parks and the promotion of corporate entrepreneurship. As a contribution to the understanding of the potential of entrepreneurship in such close settings, in its «context’, a conceptual framework is presented that elaborates upon the functions of the context as an intermediary between the individual venture and the global environment. These organizing functions are represented by the personal networks of the entrepreneurs. Both business and social strands of network ties are identified in an operational model and applied to Swedish entrepreneurial contexts: an industrial district, a science park and a corporation. The network data are scrutinized through graph analysis, providing different structural features of the three empirical contexts. A contextual approach for economic development through small-scale venturing ...
154747945
Export stimulation research: Review, evaluation and integration
This paper deals with a review, evaluation and integration of available research on the factors stimulating initiation and subsequent development and sustainment of export operations. The review focused on 30 studies conducted mainly in North American and European countries. The investigation revealed that research on the subject is still at the identification and conceptualization stage, due to incomplete conceptual foundations, unsophisticated methodologies and inconsistent research findings. An aggregate analysis of the available empirical data revealed that unsolicited orders from foreign customers exhibited the highest stimulating effect. The nature of export stimulation was also found to be affected by a number of methodological parameters. A classification of the stimuli by combining the internal/external and proactive/reactive typologies revealed more or less the same stimulating impact amongst the resulting groups.
155044728
Relationships and the Internationalisation of Finnish Small and Medium-Sized Companies
MARIA HOL M LUND AND DR. SOREN Ko(IK ar-e botlh with the Department of Mai-keting and Corporate GCeography at the Swedish School of Economnics and BlTsiness Administration in Finland. Ijitet-iiationalisation activities cir-eate mllalnv oppo)rtiinities f'or SMEs but they also entail a i ange of difficulties. In this study the presenit business network is in f'ocuLs for tiniderstanding and describing tlhe iiiei niationialisation process of SMEs. The theoiretical framework is based on- the netxx ork approach as well as on earlieico(01 esponiding studies. Empirical findlings fr om a inail sur-vey conducted show that the initial export markets are those sittuated in couniitries nearby but that these acilso ten-d to remain important expoI-t m-iarkets. The firms were also sLubstantially affected by internationial comlpetition as they exported niot onlxl dlirectlvT bhut also acted as suppliers to buyeis operating on the global market. Agenits or own salesmen were the mn-iost imiiportauit entry modes on the initerl-national market. High quality pr)o(dlcts, a flexible organisation anid coml1petent personnel were mentioned s impolitant competitive tools. The impol-tanice of the social network was stressed as was the management, as well as per-sonal contacts and interests. Cooper ative arrangements with other domestic firms were also regarded as ways of' strengthening international colmpetitiveness and receiving infoir-nation.
167671766
Social Factors Influencing Export Initiation in Small and Medium-Sized Enterprises
The authors examine the influence of antecedent social ties on export behavior in an exploratory cross-case investigation of a sample of small and medium-sized exporters drawn from different industries. Data pertaining to 31 export market entries support the view that decision makers' cosmopolitanism has a significant influence on the initiation of exports.
153543365
Small High-Technology Firms and International High-Technology Markets
In this qualitative investigation, the authors report on the overseas expansion processes of technologically oriented U.K. small and medium-sized enterprises (SMEs). The findings provide further challenges to the incremental approach to internationalization; also, the authors put forward criticisms in relation to policymakers’ current approach to categorizing internationalizing SMEs in the provision of trade assistance programs.
166464435
Internationalisation in Industrial Systems — A Network Approach
The theme of the book suggests that international interdependence between firms and within industries is of great and increasing importance. Analyses of international trade, international investments, industrial organisation and international business behaviour attempt to describe, explain and give advice about these interdependencies. The theoretical bases and the level of aggregation of such analyses are naturally quite varied.
154890501
Business Relationship Learning and Commitment in the Internationalization Process
This paper is based on a case study of an international venture and on the observations reported by a number of researchers that the received models of the internationalization process of the firm do not capture some important phenomena in the modern international business world. As several researchers argue that networks play an important role in the early internationalization the paper outlines a network model of the internationalization process of the firm. It combines the experiential learning–commitment interplay as the driving mechanism from the old internationalization process model with a similar experiential learning–commitment mechanism focusing on business network relationships. In the resulting model we can see firms learning in relationships, which enables them to enter new country markets in which they can develop new relationships which give them a platform for entering other country markets.
167720933
The Role of Networks in the Entrepreneurial Process
Abstract The extent to which the entrepreneur interacts with the networks in his local environment during the process of starting a new firm was studied. This study was based on the premise that, during this process, he is seeking not only the resources of equipment, space, and money, but also advice, information, and reassurance. Consequently the help and guidance received from both the formal networks (banks, accountants, lawyers, SBA) and the informal networks (family, friends, business contacts) will influence the nature of the firm substantially. The study was conducted in St. Joseph County, Indiana, a county that has experienced the same economic problems as many other towns in the midwest smoke-stack belt during the 1970s. In 1982, in response to this general decline in the business climate, a fund was raised to create and manage a new industrial strategy. Before this, there was no collective strategy for nurturing either the small firm or the new firm. Therefore, in order to determine the extent to which an interventionist strategy was appropriate, a research project was designed that posed three basic questions: what does the environment look like; does it need changing; and, if so, in what ways? This article reports part of that study—a survey of firms that had started in the county in the previous five years (1977–1982). It was concerned with two issues: the characteristics of the St.Joseph County entrepreneur and the usage of the formal and informal networks. The results of the survey show that the aggregate characteristics of the St. Joseph County entrepreneur are similar to those found in other studies. The new firms were founded by local people from small firms who started their small firms in similar industries that were local in nature. Moreover, the majority (90%) not only started small, but also grew very little subsequently—firms that have been classified elsewhere as life-style ventures. It is to be expected that such people would have a strong local network, both formal and informal, particularly in a county with a population of only 220,000. However, the results of the second part of the study showed that the main sources of help in assembling the resources of raw materials, supplies, equipment, space, employees, and orders were the informal contacts of family, friends, and colleagues. The only institution that was mentioned with any regularity was the bank, which was approached towards the end of the process when many of the resources were assembled and the elements of the business set in the entrepreneur's mind. This was not because the formal sources were unwilling to offer guidance, but rather that the entrepreneur and his social network appeared to be unaware of what was available. Moreover, in using only business contacts, family, and friends, the entrepreneur was likely to re-create the elements of previous employment, even when he was starting business in an entirely new market. Further, there was no significant difference between growth and no-growth firms. It would appear that in this county, the formal network was uniformally inefficient. This research shows that a major aim of the new strategy should be to increase the awareness of the community to the formal sources and types of help that are available. However, whilst most of the institutions are prepared to solve specific problems, they are not in the business of diagnosis or counseling. The network needs a hub or an enterprise office. The data on the start-up process and the role of networks in relation to new firms are very sparse and often anecdotal. This study was conducted in one environment, a small midwest county with a jaded entrepreneurial tradition. Further studies are necessary. Research questions include the extent to which networking is crucial in the start-up process, the length of time it took for the sophisticated networks of Boston's Route 128 and California's Silicon Valley to develop, and the effect of different geographic, cultural, and economic conditions. Only in this way is it possible to determine the extent to which regional, regeneration strategies for new firm creation should be county specific rather than state or country wide.
153776538
Export stimuli: Export intention compared with export activity
With the increasing globalization of markets and their interdependencies, small and medium sized domestic firms have witnessed their relative sanctuary from foreign competitors being eroded. This study is founded upon the premise that a significant degree of dormant export potential exists in firms of such size and the particular interests of the research centre upon preexport behaviour and decision making. An attempt is made to investigate those elements that play an influential role in stimulating domestic firms' intention to engage in export activities, based upon the notion that firms exhibiting a strong intention to export will be those most likely to proceed successfully to export initiation and development. Specifically, the objectives of the study concern: the identification of potentially significant differences in export stimuli between groups of non-exporting firms considered in terms of degree of export intention; and, a comparison of export stimuli between groups of non-exporting firms and those currently engaged in export activities. Several significant findings are reported and their implications for executive and public policy audiences highlighted, along with suggested future research opportunities and the limitations of the study.
167425675
Managerial and firm influences on export behavior
Export researchers have generally interpreted small enterprise export behavior as either being exclusively dependent on firm factors or specific characteristics of decision-makers. These approaches are inadequate for explaining what is obvious managerial activity resulting from strategic choices among alternate foreign market expansion paths for the firm. This study empirically examines the interaction of decision maker and firm factors on intended export behaviors among eighty-nine Canadian manufacturing firms and finds that they explain a significant and substantive part of the variance in export entry behavior, but have limited success in accounting for variances in export performance.
37192314
Social Ties and Foreign Market Entry
The social dynamics which precede international exchange are considered in light of data collected on 133 foreign market entries from a sample of highly-internationalized manufacturing firms. Consistent with research done in the social network field, the findings support the hypothesis that knowledge of foreign market opportunities is commonly acquired via existing inter-personal links rather than collected systematically via market research. This study thus contributes towards an understanding of those antecedent conditions that lead to the formation of export exchange relationships.
153600705
Network relationships and the internationalisation process of small software firms
This paper examines the influence of network relationships on the internationalisation process of small firms, using multi-site case research on the software industry. The study empirically integrates the traditional models of incremental internationalisation with the network perspective. The findings show that the internationalisation process of small software firms reflects an accelerated version of the stage model perspective, and is driven, facilitated, and inhibited by a set of formal and informal network relationships. These relationships impact foreign market selection and mode of entry, as well as product development and market diversification activities. The paper offers a conceptual framework of the small firm internationalisation process which integrates the "stage" and "network" perspectives, and concludes with a discussion of research and managerial implications.
17242802
Economic Action and Social Structure: The Problem of Embeddedness
How behavior and institutions are affected by social relations is one of the classic questions of social theory. This paper concerns the extent to which economic action is embedded in structures of social relations, in modern industrial society. Although the usual neoclasical accounts provide an "undersocialized" or atomized-actor explanation of such action, reformist economists who attempt to bring social structure back in do so in the "oversocialized" way criticized by Dennis Wrong. Under-and oversocialized accounts are paradoxically similar in their neglect of ongoing structures of social relations, and a sophisticated account of economic action must consider its embeddedness in such structures. The argument in illustrated by a critique of Oliver Williamson's "markets and hierarchies" research program.
153494702
Social relationships and business networks: The case of Western companies in China
This article discusses the role played by social relationships when penetrating a foreign business network. In the business network literature social bonds have been identified as a dimension of buyer-seller relationships, but few studies have actually focused on this issue. The present study analyzed based on semi-structured interviews with Chinese and non-Chinese employees the role of social relationships in the marketing of projects and industrial goods by Western companies in China. In particular the Chinese and the experienced non-Chinese respondents stressed the importance of personal relationships, which were seen as a prerequisite for most information and business exchanges. Factors which may have influenced the role played by social relationships in China are discussed, and different ways to develop such relationships are suggested. The choice of different operational modes is discussed in terms of the access that they may give to social networks. The results suggest a trend towards using own units in China, and towards transferring the responsibility for 'networking' to local employees.
154929247
Interfirm Alliances in the Small Business: The Role of Social Networks
In light of the increasing importance of strategic alliances in shaping competition, this study explored whether the social network of small firm executives can be leveraged to facilitate the establishment of interfirm alliances. Analyses are based on a mail survey of 149 small manufacturing firms in the northeast United States. Results indicate that the social networks of senior executives account for 11–22 percent of the variance in the degree to which firms engage in alliances, depending on the type of alliance. Results also show that the number of interfirm alliances is positively related to several networking properties (propensity to network, strength of ties, and network prestige). Findings are discussed in the context of network theory, social embeddedness, and the overall implications for management researchers and practitioners.
154594303
Paradigms and entrepreneurial networks–some methodological challenges
The use of network approaches to gain an understanding of business behaviour in general, and entrepreneurial action in particular, has increased. Research into entrepreneurial networking, however, varies considerably depending upon paradigmatic assumptions. In deterministic contexts networks mainly represent restrictions while in voluntaristic settings the network is the very instrument by which new ventures are realized. A subjectivist approach thus seems to be most able to exploit the potentials of the network metaphor in entrepreneurship research since venturing means organizing through personal networking. Yet both quantitative and qualitative tools may be adopted when mapping and interpreting the characteristics of entrepreneurial networks.
16214813
The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments
On the basis of empirical research, a model of the internationalization process of the firm is developed. The model focuses on the gradual acquisition, integration and use of knowledge about foreign markets and operations, and on the incrementally increasing commitments to foreign markets. In particular, attention is concentrated on the increasing involvement in the individual foreign country.
168060037
Resource Cooptation Via Social Contracting: Resource Acquisition Strategies for New Ventures
Analyzes the acquisition of resources through social transactions by independent entrepreneurs and corporate entrepreneurs, with a focus primarily on the corporate entrepreneurs. These social transactions include previous working relationships, voluntary connections, and community ties for independent entrepreneurs. Corporate entrepreneurs steal personnel time, appropriate materials, and conceal development activities. The importance of these social transactions in securing key resources for little to no cost is demonstrated through two examples: a Cuban American in the United States and a Swedish venture manager in a European mini-conglomerate. Two types of venture managers are discussed – the administrative venture manager and the social transactions-oriented manager. Cooptation is identified as the mechanism by which resources can be obtained. Two types of cooptation, legitimacy and underutilized goods, are presented. It is proposed that the social transactions-oriented managers are more likely to co-opt legitimacy (primiarly through association or endorsement) than are the administrative venture managers. Begging, borrowing, scavenging, and amplifying are the four strategies used for taking advantage of underutilized activities. This cooptation process involves the exploitation of social assets. These social assets are built by sharing information, solving and receiving help with problems, giving and receiving favors, and creating opportunities for people to demonstrate their skills and competence. Reasons why it is difficult for corporate entrepreneurs to take advantage of network resources are provided. The propositions presented in this analysis can provide the basis for future research. (SRD)