International Entrepreneurship: Concepts, Features, and Opportunities

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This report provides an overview of international entrepreneurship, discussing the concepts, features, and opportunities in this field. It explores the theories, strategies, and challenges of expanding a business internationally. The report also highlights the role of small and medium enterprises in international business expansion.

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International
Entrepreneurship

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Summary
The report is about International Entrepreneurship and contains details related to related
research subjects: International Business & Entrepreneurship. The analysis related to discuss
about the international activates. In the report International theories are interpreted and
explanation about the evolution of the international trade and expansion of multinational
entrepreneurship. The fundamental relationship about different theories help in the growing
business of an entrepreneur internationally. The related principle, emergence and inception
are also briefly described. The report is expanded into three formats along with different
approaches and theoretical knowledge about internationalism and entrepreneurship. There
are different methods and approach required for expanding the business internationally and
that to being an entrepreneur. The report also discusses about the benefits and opportunities,
risk, advantages and problems related to expansion of international entrepreneur. Being
discussion about these theories then also there is need of new theories as the expansion of any
new business in any other country requires great strategies and improvements.
Keywords: international entrepreneurship, Internationalization, international business, theory
building internationalisation
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Table of Contents
Summary...............................................................................................................................................2
INTRODUCTION.....................................................................................................................................4
1.1 Concepts and approach of International Entrepreneurship............................................................4
1.2 Specific Features about International Entrepreneurship.................................................................6
1.3. SPECIFIC FEATURES AND FACES OF INTERNATIONAL ENTREPRENEURSHIP....................................8
1.4. INTERNATIONALISATION OF SMES AND INTERNATIONAL ENTREPRENEURSHIP.......................10
CONCLUSION.......................................................................................................................................13
REFERENCES........................................................................................................................................15
Table of Figures
Figure 1: Approach to Organization level of international Entrepreneurship given be Wach................5
Figure 2 International entrepreneurship as the amalgamation of three fields........................................8
Figure 3 The internationalisation process in the international entrepreneurship....................................9
Figure 4: An interpretative model for international entrepreneurship....................................................9
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INTRODUCTION
International Entrepreneur, as the words are clear integral of innovation, risk taking
and proactive behaviour which are beyond the country boundaries and having creatives in
developing the values in the organization. Due to this, research related to entrepreneurship
has increased. Various theoretical approaches and theories can be explained which are related
to umbrella terms describing more about international entrepreneurship. It became popular
research in late 1980s and had got expanded in 1990s. There are many disputes related to
such building international entrepreneur (Sarasvathyand et.al., 2014). Building relation
between entrepreneur and international business has influenced many economics and
management sectors along with non-business sectors like sociology, political science,
geography, psychology and economic development.
The report describes about the issues and related factors of IE. Along with it benefits,
opportunities, risks and disadvantages are being discussed. The report discusses mostly about
the international entrepreneurship, where talking international is related to the outside
boundaries of the country. Mostly discussion and elaborations about the fundamentals about
the international entrepreneurship it origin, emergence in market and on which principles it is
based.
1.1 Concepts and approach of International Entrepreneurship
Past and historical ideas related to Internationalisation can be derived from the economics
context and theories based on the management. It can be described through various
systematic and schematic models (Zahra, Newey and Li, 2014). There are various new
theories, ideas, concepts and approaches to develop business over internationally. Sorensen
and Wach have described various models and proposed many researches about International
Entrepreneurship. According to Wach, which describes the 6 main research approaches and
subjective development from models of stages and its approaches.
The international entrepreneurship started in mid 1970s and development stages were
prosposed by Johanson and Vahlne as Uppsala model. Uppsala model have discussed about
the different temporal and various patterns(spaitial) of internationalism. The theroy describes
that for person to start new business in outer country must follow this steps. They should
firstly try to establish the business in their own country then they should expand their
business in their own country. After successful establishment of their home marketing they
should start exporting and start developing the new firm in the targeted country. Some points

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must be remembered before establishment of new firm such as cultural factor, geographical
and political factors of the distint market. Along with this, economic conditions such as
infltaion and deflation also have high level of impact on the success of firm. Moreover,
during the period of slowdown purchasing power of individuals decraeses to the significant
level and vice versa. By considering this, it can be stateed that international entepreeurship
and economic growth as well as development is highly influenced from economic condition.
Such researches are very necessary abd important to expand the busimess in outer country
(Terjesen, Hessels and Li, 2016).
.
Figure 1: Approach to Organization level of international Entrepreneurship given be
Wach
Sources: Refer from Wach (2012, p. 99)
The RBV has undergone various changes during course of globalization in mid 1970s.
Energy crises, innovative technological development, shorter product life cycles, saturation in
market due to different industries and change in business environment has greatly affected
the global network and business expansion. Earlier strategic views were not established,
theories and were based on RBV. But due to advancement and more interaction of various
firms with market based view there was need to develop and implement the strategic
management. The managerial and entrepreneurial skills, new and high capability and
competence are the key points of strategic management. Now for establishment of new firm
requires new and unique resources such as competence, attitudes, knowledge, capacities,
capabilities, reputation and relationship. Also there is need of the resources so that
international business can be expanded (Coviello, Jones and McDougall-Covin, 2015).
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Basically it is related to role of suppliers, business contacts and customers. Stronger the
network more will be the expansion of the business and open scope of new opportunities.
Network analysis and marketing mix can also help to expand the business. But for being the
entrepreneur there is need of building strategies and planning related to start of new business.
By offering highly innovative products and services and thereby framing suitable marketing
mix business entity can develop satisfaction among the customer. Through evolution of the
existing network and approaching business aspects as well as opportunities has been the basic
ideas of entrepreneur. Entry of the new business in the foreign countries creates new
opportunities to local and increase foreign network along with market. The new business
ideas or concepts whose products has been not launched creates desire in customer. For being
successful entrepreneur, market strategies and management abilities are required. For market
development resources, marketing skills and regarding information are needed.
Business strategies and market approach is required for doing new business in
international market by an entrepreneur. Other theories are related to the establishment of the
international business through entrepreneur are organizational structure and management
behaviour, transnational structure, competitive advantages and fundamental agreements.
Small and medium enterprises expand their business in outer boundaries without strategic
planning. For this they choose the neighbouring countries to expand their business. Basically
the expansion of small and medium enterprises has been found to have great success in the
other countries. They have really expanded their business internationally without plan or
related internationalism strategies (Schwens and et.al., 2017).
1.2 Specific Features about International Entrepreneurship.
International Entrepreneurship really focuses on the role of the entrepreneur and his
application in the business world mostly the medium and small enterprises. Mainly they
invest on the human and planning factor for the expansion of their business globally. SME
have to face different problems related to business expansion. The market demand and
essential risk in adaptation of market strategies have affected the business sources of SME
over internationally. Limited capabilities, lack of financial support and requirement of human
resources are the main sources which SME gets during in his international business.
Developing new ideas and innovation can greatly help the SME in investing the project
internationally. SME have to develop different tactics and researches at executive level in
internationalization in order to achieve the market size, cost advantages like profit margin,
customer feedback and able to learn different market skills.
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SME are the enterprise which have employees less than 250, where manager and
entrepreneur have the maximum powers to make decision related to the firms. Their general
task is about the look at the market and different prospect where business can be expended.
Prepare respective data sheets so that the data sheets can be utilized for the future expansion
and executing the plan so that the internationalization process continues. SME have to look
after their business in both ways that is internationally and to their own country (Mainela,
Puhakka, and Servais, 2014). They have to make related such strategies as the marketing
condition will be different in different countries. This causes extra tension to the SME as the
main cause of it are extra load management, overload of time management and business
development of the firm. Other disadvantages of SME are language skills, communication
problems, cultural understanding, strategic awareness and business approach internationally.
This creates burden and increases the work load which requires intensive and concentrated
focusing on the business expansion. International entrepreneurship makes great contribution
in the economic growth and development. Moreover, entrepreneurial activities enhance
employment opportunity within the community to the significant level. In this way,
entrepreneurship reduces the level of poverty to significant level. Along with this,
entrepreneurial activities also enhance living standard of people to the significant level.
Hence, by taking into all such as aspects it can be stated that entrepreneurial activities
facilities high growth and development.
Traditional methods of business expansion internationally which were based on following
concepts:
If some foreign employee for foreign investment has come with some international contacts.
The settling of the location site and follow of customer strategy.
Different suppliers’ connection and contacts who have already established their business
internationally and
Expanding business on other location sites and future planning about the market there.
For being internationalization there are less capabilities as the local business affect the
strategies adopted by the foreign entrepreneur. SME market extension is the conceptual idea
which can expand due to planning and managing the world wide awareness and
socioeconomic relationship. For the entrepreneur decision made related to the company
should be fast and quickly. They have to make such planning and strategies as the market
condition of that place might change. They are also affected by the political and social factors

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of that country. This leads to great disadvantages to the business in terms of global
capabilities. If they don’t have the respective market knowledge, then they are unable to
expand their business internationally and they require further investigation related to business
expansion and for growing as internationally they may consult the experts to get solution to
the issues. The international entrepreneur was earlier the research domain of two field which
were expanded by Zucchella and Sciabini. The new fundamental structure was strategic
management. Thus adding strategic management has made the three pillars of international
business and entrepreneurship. Strategic management now has included the strategic
entrepreneurship along with business strategical approach. Along with it their rich production
and influencing power can be further increase the business. (Zucchella. and Magnani, 2016).
1.3. SPECIFIC FEATURES AND FACES OF INTERNATIONAL
ENTREPRENEURSHIP
Figure 2 International entrepreneurship as the amalgamation of three fields
Source: adapted and extended from Zucchella & Sciabini (2007, p. 22).
International entrepreneur theories can be easily understood by the research area as theories
of entrepreneur and internationalization. This have been discussed in many researches and
many publishers are still doing research on such topics. IE can be regarded as the research
approach to the problems and issues of firm internationalization.
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Understanding international entrepreneurship in broad way requires two different research
areas:
creative process of recognition and exploitation of opportunities in foreign markets; the
research area related to such places is similar to the conventional point of view to theories
along with procedures of entrepreneurship, this theories and procedures were once used for
the analytical study to establish the domestic ventures; For the internationalisation process
there is special role of the entrepreneur as because of its high level of creativity,
entrepreneurship and innovation they business flourish (Hagen, Denicolai. and Zucchella,
2014).
For entrepreneurship area there is need of comparative research and international study
of market; for the research, the main subject will be directly related to the entrepreneur and
research directly links to the conventional study of comparative and international studies.
Figure 3 The internationalisation process in the international entrepreneurship
Source: adapted and extended from Oyson & Whittaker (2010, p. 9).
It was found through studies that theory related to international entrepreneurship relates to 3
key research issues, these were about being an entrepreneur, entrepreneurship process and
external business environment. Sciabini and Zucchella had special attention on the
international entrepreneurship as it develops the internationalization process. The process
which beings from the opportunity and after some years reaches to the corporate. Carsten
Wehrmann and Krzyszt of Wach performance, they found that major part in the process was
the dynamic capabilities and mobilisation for the expansion. In simple words
internationalisation is the process of grabbing opportunities, seeking them and taking the
advantages of those opportunities.
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Figure 4: An interpretative model for international entrepreneurship
Source: Zucchella & Sciabini (2007, p. 126)
The parallel research about the international entrepreneurship is given by
Internationalisation entrepreneurial
Comparison international of entrepreneurship
international comparisons of entrepreneurial internationalisation
1.4. INTERNATIONALISATION OF SMES ANDINTERNATIONAL
ENTREPRENEURSHIP
For international entrepreneurship the key role played by small and medium
enterprise for the business expansion. In the earlier era internationalisation was mostly
referred to the large firms. But SME have proved that business can be expanded successfully
and can be operated internationally. SME requires less decision-making process and for them
international business expansion methodology are only the theoretical literature. For the
business expansion there is no strategical process, SME international expansion are based on
the different practise and factors like decisive success. But moreover it was found that
international entrepreneurship has not been expanded in the independent approach to the
recent development (Glavas and Mathews, 2014).
For the expansion of the SME, they generally prefer the neighbouring countries which
are having the cultural and geographically aspect known to them, they don’t prefer expansion
through the market strategies and financial condition. This turns to facilitates high economic
growth and development to significant level. For the international business expansion
generally the existing opportunities and contacts are very useful. Through this firms makes
slowly invest in the "known" to “unknown" business and investors which directly relates

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study of organisation theories. SME in international business first gains experience and
through various plans evolve them into a methodical approach. This approach is directly
related to organisational learning. IE is that process in which entrepreneur can learn various
process which are linked to business expansion. Mostly the in this process trial and error,
improvise and directly depends on the efforts made by the employee. SME’s use better
strategies in order to invest capital as there is little risk, business is in smaller scale and the
marketing condition are unknown. They hardly practice the internationalisation theories and
models such as strategic alliances, getting license, franchise, mergers and shareholders. At the
beginning the man concentration is on the export and that too depend on the abroad customer
demands or the dealer contacts. Through this basis the SME invests and establishes the new
business expansion in abroad, the achievement through sales and specific volume of product
and services sold gives the benefit level of the IE. Depending on products sold and the annual
sales, travelling cost and wage costs, and the IE sets up the permanent business with R&D
and the other production related facility.
SME entrepreneurs did not consider in their past internationalization activities and which thus
caused unwelcome "surprises"
The focus on labour and land costs led to an underestimation of the total sum of direct and
indirect costs of an international production net. Costs for substitutions of assets and
machinery, qualification costs for employees, traveling expenditures for home staff that are
needed abroad, etc. we’re not considered.
organization of information flow and controlling, processing, quality assurance, etc.
lacking management capabilities at the foreign executive level, handling of different quality
standards, training and working traditions such as absence, fluctuation, gender discrimination
etc. (Dimitratos and et.al.,2014).
(manifested in a lacking perceived fit of business tasks or goals of the foreign management,
in the worst case know-how diffusion via theft or plagiarism.
starting with missing repair services, replacement investment possibilities, suppliers of main
parts
non-transparent cultural and political background (of business methods and cultures,
working traditions, institutions and administrative machinery.
This demands attention and trust that can be built up and smoothed out by proximity; not only
spatial closeness, but personal as well. Internationally successful SMEs have developed this
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proximity through the creation of internal and external network interfaces. This means that
the entrepreneurs managed to link and expand their business sphere on two levels:
* The business to business level (development of network capabilities between the home
and the host country through the exchange of employees, shared trainings, and the creation of
responsible interface positions that relieve the SME entrepreneur of the main task of pulling
the network together or building up trust between the units).
* the local level (acquisition of local and regional knowledge about the embeddedness of
the new business, the foreign educational and training system, business methods and routines,
supporting institutions, research institutions, unions and employer’s associations, supplier
nets).
Therefore, global network capabilities describe a complex set of entrepreneurial
competencies such as:
* The skill to connect and integrate home and foreign business through trust and division of
labour,
* the ability to integrate in a foreign socioeconomic environment.
Key factors for the long-term establishment of a solid globalization trajectory are the
development of local network positions abroad and of internal business co-ordination
mechanisms that are based on a trust-filled relationship. SMEs which cannot build up the
necessary global networking capabilities run the permanent risk of losing control over the
value chain and the ongoing processes. In the worst case scenario, the SME runs the risk of
insolvency and bankruptcy (Wach, K. and Wehrman, 2014). The investigated cases provide a
deep insight into is management or, put another way, "mis-networking" that led to alarming
business situations: entrepreneurs close their eyes to the need to interlink and become
familiar with the business atmosphere abroad. They fail to understand cultural differences
and fail to adapt to them. Suffering from time pressure, many have not been willing or able to
take the time to integrate the different units into one network. This leads to negative
experiences with internationalization that can cause dramatic business results or a retreat
from and revocation of the international engagement. Surveys show that up to 30 percent of
German SME internationalization projects are totally or partly relocated to the home base. All
firms, independent of size, have to cope with the evolutionary dynamics inherent in
internationalization processes. Traditional SME entrepreneurs have to adjust to these
dynamics or otherwise run the risk of missing international or business activities. The
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capability to be aware of the need to react, to change and to adequately adapt is a matter of
survival. Depending on the form and demands of the international dynamics, SMEs can
follow varying strategies like:
* intensification (extension of the international engagement in terms of size, new forms or
markets).
* alternation (change of the international engagement in terms of internationalization
strategy, form or size) and
* back sourcing (closing down the international business, temporarily or permanent re-
concentration on the home base depending on local and regional production conditions).
SMEs can reduce their maximum problems of evolution dynamics by focusing mainly
on the entrepreneurial and business networks. But in 21st century everything about the
economic environment can’t be predicted. But is also true that entrepreneur’s business is
expanding globally in huge amount due to the innovation and flexibility. Through this system
the business can be strongly grown and enables to expand globally (Oparaocha, 2015).
CONCLUSION
The international business development activities can be denoted due to the
contribution of globalization because through this process firm learns various business
aspects and they innovate and explore various products in the worldwide environment. The
current report discusses about the internationalization and the IE. Internationalization theory
are further discussed and outlined which mainly focuses on targeting market with SMEs.
Global and traditional Small and Medium Enterprise contains various assets of
internationalism which they utilize in the internationalization process. For an entrepreneurial,
building network, and utilizing the evolution capability which are developed by the former
entrepreneurs due to their own experience. International teaching enhances and increases the
knowledge along with business capabilities of IE via entrepreneur own experiences and the
business network they established abroad. This may or mayn’t promote the
internationalization process as it depends completely on the SME business actions. Back
sourcing can be helpful in understanding and practical applying the internationalization
process. In the internationalization the entrepreneurial business network as well as the
enterprise capabilities don’t support directly and generally they don’t suggest various aspects
of international engagement. The utilization of the regional business networks and awareness
about the global ones can be helpful in expanding the network capabilities. Due to all this

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there is further more improvement required in the internationalization theories. To solve all
such related problems, the traditional theory must be reframed and the new theories must be
able to cope up with the network dynamics and complexity in the internationalization
entrepreneurship.
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