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With the ongoing dispersion of the worldwide electronic community and function advancements of knowledge and communique applied sciences, resource-poor start-ups with on-line company types have emerges in huge numbers. those organisations may be able to install their competitve benefits throughout their state forums early of their life-cycle and interact in foreign trade at a quick velocity. A elevated immediacy among the corporations and the glabally available buyer is saw.
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Extra info for Antecedents of Venture Firms' Internationalization: A Conjoint Analysis of International Entrepreneurship in the Net Economy
However, opportunities are also associated with risks. Miller (1992) and Brouthers (1995) present three groups of risks; (a) firm-specific risks (b) industry risks and (c) general environmental risks12. Contrary to firm-specific and industry risks, general environmental risks are risks which apply to all firms independent of competition, for example, the political and environmental instability. Firm specific risks are predominantly cost-related factors: Low labor costs associated to production cost advantages may increase competition of labor within the firm and induce long-term lay-offs in the home-country production sites or headquarters.
Second, the theories of international business will be reviewed with regard to explanations for internationalization propensity. These are, in particular, the monopolistic advantage theory, the internalization theory, the eclectic theory of international production, oligopolistic reaction theory and the international product life cycle theory. Because these theories do not provide adequate explanations for internationalization propensity in the Net Economy, in a next step, the traditional process and export development models will be discussed and reassessed for E-Venture internationalization behavior.
First, only the domestic market is catered for, then, another market is entered, and after a time lag, the countries close to this market may be targeted and so on. The expansion strategy of the firm takes a longer period of time until completion. , 2005, p. 110). Thus the temporal expansion sequences involve a decreased risk- the firm may cancel or adapt future market entries. 17 Although psychological proximity seems to be the most prevalent criteria in the literature for market selection. Other criteria apart from political and legal factors, demand and competition cf.
Antecedents of Venture Firms' Internationalization: A Conjoint Analysis of International Entrepreneurship in the Net Economy by Julia Christofor, Tobias Kollmann