International Entrepreneurship Summaries1#7 International Expansion by New Venture Firms: International Diversity, Mode o Mar!et Entry, "e#$nolo%i#al &earnin%, and 'erorman#eNew venture frms, being companies six years old or younger, are moving intointernational market early intheir liecycles! "combinationo institutionalactors, industryactors, andorgani#ational actors uel their expansion! $heexpansion allows growth, positive returns, and capitali#ation o learning!%owever, even when a new venture frm has a superior product, it must learnother skills to position its product successully! &nowledge creation can be a di'cult process! (irms must manage this processwith the intent o integrating the learning that has occurred in the internationaloperations! Integrationistheprocessbywhichmanagersdeterminewhathasbeen learned, evaluate its potential importance, and explore ways in which thenewknowledge can be used! )entures undertakingthis integration achievegreater, deeper, and speedier technological learning! $he ability to manage andcultivate knowledge di*erentiates success romailure! E*ective learning iscumulative in nature! $his knowledge in+uences a venture,s ability to adapt itsproducts to local market conditions, capitali#e on market dynamism through rapidnew product developments, and identiy emerging technological change that canin+uencefrmperormance! -readthdenotes themultipleareas inwhichaventure learns technologicalskills! .epth reers to a venture,s mastery o newknowledge, evidenced by an ability to draw new conclusions and fnd new linksamong diverse knowledge bases! (inally, speed o technological learningdescribes how rapidly the ventures ac/uires new insights and skills! &nowledgeintegration moderates the relationship between international expansion activitiesand technological learning, which in turn in+uences frm perormance! International diversity 0Number o countries, technological diversity, culturaldiversity, geographicdiversity,andoreignmarketsegments1denotesafrm,sincreased reliance on oreign markets as a means o growth and fnancialperormance improvements! 2earning derived romnational di*erences andeconomies o scale and scope can be a source o competitive advantage!3oncerning breadth, a venture that expands internationally by entering marketsinseveral oreigncountriesismorelikelytoexperiencedi*erentculturesandinstitutional systems than one that ocuses on a single or a ew countries! $hislearning emerges rom understanding and using cultural values in designing andmarketing the frm,s products and process technologies! 4oreover, exposure to,and direct involvement with, business and customers in multiple countries is animportant means o learningbydoing, whichpromotesdeeper technologicallearning! .iverseideasandcapabilitiesencounteredininternational businessoperations produce combinative knowledge! 5egarding speed,internationali#ationcanenhancethespeedo learningasafrmexperiencesmultiplecultures andmarkets! %owever, earlyexposurecanalsoleadinaninormation overload owing to increased transaction costs and cultural diversity!"s such, the authors propose a curvilinear relationship between a new venturefrm,s international diversity and the speed o learning! 6International business transactions di*er in their risks and payo*s and theexperiencegainedromthem! .eepstakeholder involvement associatedwithhigh7control transactions exposes a frmto uni/ue knowledge bases andexperiences! $hesemodes typicallyre/uireacloseness toamarket anditscustomers, thus increasing the venture,s exposure to di*erent inormationsources! Interactions withlocal suppliers mayprovideinormationabout themarket, customers, and competition, thus increasing the frms breadth otechnological learning! 4oreover, anewventurefrmusinghigh7control entrymodesislikelytoexperiencemoreradical learningthanthoseusingmodesre/uiring less involvement, due to learning by doing, thus increasing the depth otechnological learning! (inally, closeness tothemarket andits customers isconductivetorapidlearning! -yusinghighcontrol entrymodesthatensurecloseness to customers in international markets, ventures increase the speed oits learning! (or technological learning to yield an advantage, it must be captured,interpreted, and deployed e*ectively! Integration enables managers to internali#ewhat is has learnedinits international operations, helps developingsharedlearning and accumulating knowledge over time! (ormal integration is theprocessbywhichmanagersinventory0determinewhat hasbeenlearnedandevaluate importance1, synthesi#e 0understand what has been learned andarticulate the knowledge1, and use 0devise ways to exploit the knowledge1 theknowledge they have gained! New ventures usually have organic structures thatpermit speedy and e*ective +owo knowledge and its subse/uent use inactivities! &nowledge integration is expected to moderate the relationshipbetween the international modes o entry, international diversity, andtechnological learning! $he success o international new ventures is explained by their ability to leveragethe knowledge gained rom oreign operations! $he breadth is useul in designingnew products and updating existing ones! $he depth improves a frm,s ability toredesign its products or ease o use, o*er customi#ed applications, or radicallychange product defnitions! (inally, the speed improves the venture,sperormance by compressing the product development cycle!Internationalexpansion provides new market opportunities in which a frm cansell its product innovation! International diversity allows the new venture to enterandproft rombenefcial networks! "ll modeso entryshouldhavepositivee*ects on frm perormance!$he results show that international diversity is a signifcant predictor o breadth,as well as exports and ac/uisitions! $he same thing goes or depth, with start7upsandoreignac/uisitions beingrelated! $echnological diversity was positivelyassociated with speed! %owever, the number o oreign countries entered has anegative e*ect on speed! $here is a strong relation between international diversity and mode o entry andthebreadth, depth, andspeedo learning, especiallywhenormal knowledgeintegration is used! -readth, depth, and speed are related to new venture frm8perormance! $hehigherthediversityo themarketentered, thegreatertheopportunityor learning! %owever, greater diversitymayreducethespeedolearning as well! New ventures that diversiy internationally may have to tradespeedo*against thebreadthanddeptho technological learning! 4oreover,there was no relationship between start7ups and breadth o learning! $he resultsalso showthat high7control modes are positively associated with depth! Incontrast, lower modes have a negative e*ect on speed! &nowledge integrationincreases the breadth and depth o the technological learning new ventures gain!$he role is even more important with modes o entry! (urthermore, technologicallearning is positively associated with new venture perormance! (inally, there aremixed results o dimensions o international diversity on perormance! #( )ow New Ventures Exploit "rade*+,s amon% International -is! Fa#tors: &essons or t$e .##elerated Internationali/ation o t$e 01st 2entury"ccelerated internationali#ation reers to the phenomenon o frms engaging ininternational business activities earlier in their organi#ational lie cycles than theyhave historically! Existing internationali#ation theory highlights slow andincremental oreign market commitment because such behavior has beenre/uentlyobservedandbecauseinternationali#ationseemssoriskyorsmallmarkets and new ventures! International business is considered inherently riskybecauseitmayinvolvelossoproftsand9orassetsasaresulto changesinpolitical, legal, economic, and social actors in oreign markets! So how can frmsexperiencing the risks o small si#e and newness also successully manage theadditional strategic risks o entering oreign markets so early in their existence: Itcan be argued that multiple internationalrisks can be managed by trading o*one risk against another to keep overall frm risk lower than it would be withoutsuchtrade7o*s! $hreeo themost importantinternational riskactorsare011oreign location, 061 type o commitment to that oreign location, as evidenced bythe modes o entry chosen, and 081 the proportion o revenue exposure a frm hasin that location! Internationali#ation is said to provide small frms with an important opportunityor growth that, due to their relative poverty o resources, oten occurred throughinterorgani#ational alliances! 5apid internationali#ation o new and small venturesis believed to be either an unimportant anomaly or a world7wide expansion o the;apanesekeiretsumodel, wheresmall frmsoperateasthoroughlydependentsuppliers to large established multinational organi#ations! Empirical work showed that clear product di*erentiation and internationallyexperienced directors and managers are associated with the earlyinternationali#ation o independent new ventures! It is most accurate to view internationali#ation and the risks inherent in managingit, as having multiple dimensions that are distinct but simultaneously determined!ne is imitation? frmscompetinginthesameindustries enteringthesamecountries! 3opyingtheactions o another company whose behavior is @udged appropriate grantslegitimacy totheimitator! %owever, imitationis not apredominant way ohandling the risks! $he deep niche strategies oten used by new ventures in theinternational arena, whereby frms deploy unusual products or services to ocuson a narrow sliver o a market, mean that their orte is uni/ueness, not imitateoligopolistic competition! >ther strategic actions are avoidance, +exibility,cooperation, and control! "voidance occurs when the decision makers o a frmbelieve that operating in a particular area is unacceptably uncertain and reusesto enter a country or exit a country it has already entered! $he essence o the+exibility strategy is decreasing the cost o internal organi#ational adaptation tochanginginternational circumstances! $hisway, thefrmmayrespondrapidlyande*ectivelywhenprices, demand, orstandardschange! rgani#ational capabilitiesre+ect the ability o the frm to perorm repeatedly, or replicate, productive tasksthat relate to the frm,s capacity to create value! 3ompetences are thoseknowledge7intensive, perormance7enhancing business activities in which the frmis particularly skilled! >rgani#ational capabilities are the main source o the frm,sperormance advantages and have two ma@or aspects? the shiting character othebusinessenvironmentandstrategicmanagementinadapting, integrating,and reconfguring knowledge based capabilities! E2arger, long7establishedfrmsusuallyexperiencesubstantial bureaucrati#ationthat hinder innovative activities, smaller or younger frms are more +exible andgenerally en@oy internal conditions that encourage innovativeness! 5D.productivity relative to si#e decreases when frms get older and become larger!Bossession o capabilities7based resources helps frms to attenuate their liabilitieso oreignness and newness! " key dimension o born7global frms is that they appear to lack the deeply rootedadministrative heritage! rgani#ational learning theory suggests that thedevelopment o new knowledge occurs best under conditions in which there arelittle or no existing organi#ational routines to unlearn! $he/ualitativephaseo thestudyrevealedthatbornglobalsarelikelytobeormed by entrepreneurs who pursue oreign ventures with a strong marketingorientation! $hey tend to leverage technological prowess, relatively uni/ueproducts, and strong /uality ocus to sell their o*erings via independentdistributors in markets worldwide! %aving an international entrepreneurial orientation implies that these frms makethe leap into international markets because o uni/ue entrepreneurialcompetencesandoutlook! International entrepreneurial orientationre+ectsthefrm,soverall innovativenessandproactivenessinthepursuit o internationalmarkets! Bossession o this orientations gives rise to certain processes, practices,and decision7making activities associated with successul entry into new markets!$heinternational marketingorientationreers to a managerial mindset thatemphasi#es the creation o value, via key marketing elements or oreigncustomers! 4arketing oriented frms seek to o*er products and services whosevalue buyers perceive to exceed the expected value o alternative o*erings! Itprovides the oundation romwhich the frminteracts with diverse oreignmarkets! $hemost important businessstrategiesareglobal technological competence,uni/ue products development, /uality ocus, and leveraging o oreign distributorcompetences! Flobal technological competence reers to the frm,s technologicalabilityrelativetocohortfrmsinitsindustry! Entrepreneurial frmscontinuallyseek tocreateproducts andoperatingmethods that improveorgani#ationalperormance! International marketing orientation can also oster globaltechnological competence, sincefrmsleveragetechnologytoinnovateinthecreation and improvement o products! Inormation and communication acilitatelearningabout customersandcompetitors! $hus, %1, inheborn7global frm,global technological competenceisaunctiono international entrepreneurialorientation and international marketing orientation! Gni/ue productsdevelopment re+ects the creation o distinctive products and is akin todi*erentiationstrategy! "nentrepreneurial orientationisre/uiredtocopewiththe more established rivals! 4oreover, di*erentiation strategy and the creation ouni/ue products are marketing7based strategies, thus, %6, in the born7global frm,uni/ue products development is a unction o international entrepreneurialHorientation and international marketing orientation! Iuality ocus re+ects e*ortsto develop products that meet or exceed customer expectations with respect toeaturesandperormance! Entrepreneurial orientationgivesrisetoinnovativeprocessesandpracticesintendedtomaximi#eorgani#ational successinnewmarkets!"s animportantmarketingstrategy, frmswithastronginternationalmarketing orientation are also likely to promote a /uality ocus! $hus, %8, in theborn7global frm/uality ocus is a unction o international entrepreneurialorientationandinternational marketingorientation! (inally, leveragingoreigndistributor competences reers to the tendency o born globals to rely on oreignindependent distributors and their competences to maximi#e perormanceoutcomes! $he uncertainty, risk, and uni/ue challenges present in oreignmarketscanbeovercomebyleveragingthelocali#edmarket knowledgeandcompetences o oreignintermediaries! Stronglymarketing7orientedfrms willalso tend to seek competent oreign intermediaries because strong distributioncapabilities acilitatesuperior promotion, customer relationshipmanagement,andother downstreammarketingactivities! $hus, 0%=1 inbornglobal frms,leveraging oreign distributor competences is a unction o internationalentrepreneurial orientation and international marketing orientation! $o summari#e, global technological competence is a critical source o newproducts andbusiness methods andhas thepotential tooster inormationtechnology and e7commerce, uni/ue product development yields di*erentiationstrategybenefts whichcanallowbornglobals toservenicemarkets morecapably and minimi#e harmul interaction with competitors, /uality ocus impliesa system o frm resources specifcally devoted to creating superior o*erings, andleveragingoreigndistributorcompetencesismarkedlycritical! "ll actorsarehypothesi#edtoleadtosuperior perormancein%A! %1band%=aarenotsupported, the rest is! In conclusion, born globals ac/uire a substantial, undamental base ointernational experienceandknowledgethat traditional 4NEs typically havetaken longer to ac/uire!#17 International Entrepreneurs$ip in Internet*Enabled Mar!ets-yincreasingthe/ualityandspeedo communicationsandtransactionsanddecreasing their costs, advances in I$ made internationali#ation more easible orresource7constrained frms! " frm,s reputationisaperceptualrepresentation o acompany,s pastactionsand uture prospects that describe the frm,s overall appeal to all its keyconstituents when compared to other leading rivals! (irms with avorablereputations beneft because they are more attractive to stakeholders! $hisattractiveness can yield price, cost, and selection advantages that may persistover time! (urther, reputationinvolvesbothvisibilityand/uality! $hesecondresource identifed is the online technology capabilities, which are defned as theengagement o routines, prior and emergent knowledge, analytic processes, andJsimple rules to turn I$ into customer value! $he sustainability o the competitiveadvantageromtechnologyliesinthefrm,sabilitytoconfgureandleveragetechnological components in a rapidly changing technological context! (irms thatmakehigher investments intechnologyaremoresuccessul intheir useointernet7based export channels! $hirdly, an online brand community is an onlinespeciali#ed, non7geographically bound community, based on a structured set osocial relationships among admirers o a brand!Brospective buyers want onlineinormationaboutsellers/ualitytolowertheirsearchcostsandonlinebrandcommunities can provide positive endorsements! $he internet lowers switchingcosts or current buyers and so they are easily disrupted by a new competitiveentry, but brand communities can oster a*ective support which increasesswitching costs!Inordertostandouto thislargerpool o companiesandbeabletoexploitinternationali#ationopportunities, it isimportant that frmsdevelopanonlinereputation! Innewindustries, anearlyonlinereputationyieldsgainsbecausethereisanincreasedcapacityorherdingbehavior, withbuyersimitatingthepurchase decisions o previous buyers! >nline visibility is defned as amiliarity inthe eyes o online stakeholders relative to that o its rivals! B1 ollows that theonline visibility o a frm is positively related to the frm,s successul pursuit ointernational opportunities, when competing in internet7enabled markets! -eyondsignaling /uality through price and advertising, managers also have the option osignaling/ualitythroughtheinormationtheydiscloseonline! "'liationswithamous people, third7party awards, certifcations and testimonials are allreputation7building mechanisms that have been ound to be benefcial todisclosure or frmoperating online! 4oreover, a company can disclose itscountry7o7origin, which may be associated with reputational signals o acountry,s image! (inally, signalvolume and signalconsistency are aspects o afrm,s online reputational signals that researchers need to take into account whenassessing a frm,s online reputation! nlineinteractionscanprovidecompanieswithimportantinormationabouttheirmarketsandsohavethepotential toenablefrmstodiscover, evaluate and exploit international opportunities! >nline brandcommunitiesmay beinitiatedbya frmor by buyers orusers o its products!>nlinebrandcommunitiescanenablebranduse, enhancebrandperception,provide a*ective support, provide solutions to users, and help to build additionalmeaningso thebrand! 3ompaniescanmonitor andlearnromthemaboutproduct and company perceptions!, leverage active users insights, and stimulatepositive word o mouth! BE ollows, the levelo engagement o a frm,s online11brand community is positively related to the frm,s successul pursuit ointernational opportunities when competing in internet7enabled markets! $he extent to which there are market7related barriers to entry such as@urisdictional regulationsandcultural barriershinderthefrmandreducesthegenerali#ability o this research!#11 Internationali/ation in di,erent industrial #ontexts$hestructureo anindustryiscontinuallyevolving, drivenbytechnological,economic, and competitive change! " common way o classiying changes in anindustry is the industry lie cycle, which categori#ed an industry,s development inour parts? introduction, growth, maturity, and decline! Internationali#ation decisions are otenseenas a rational decisionater ananalysis o, or example, transportation costs, tari*s and nontari* barriers,transaction costs, relative wages and market si#e! $he industry perspective canbeincludedtoshowhowthefrm,sinternationali#ationisin+uencedby$heGpsalla model ollows two ways? (irst, the se/uence o oreign market entry andsecond, thepatterndescribingtheincreasingcommitmenttoasinglemarket!$he pattern is explained by the act that frms enter markets with a successivelygreater psychic distance, meaning actors preventing or disturbing the +ows oinormationbetweenfrmsandmarket! %owever, researchshowsthat marketpotential plays a larger role than psychic distance! 3riticism o this theory is thatthecompanyshouldnotbeviewedasanindependentactor, butaspartoanetwork! 4oreover, the model is thought only to be valid in the early stages ointernationali#ation, when the lack o market knowledge and resources is still aconstraining orce!In thelaterstages, the local networksowhichthe oreignsubsidiaries are a part become the most important sources o knowledge or thelocali#ation o oreign activities! $hereis anoptionor strategic choicewhenit comes toselectingnationalmarketsandmodesoentry! (irmscanbeglobal shortlyatertheirinception!4anagement viewtheworldas its marketplaceromtheoutset andunliketraditional companies, they do not see oreign markets simply as ad@unct to thedomestic market! -orn globals being exporting one or several products within twoyears o their establishment and tend to export at least a /uarter o total sales!$he 5-) and entrepreneurship theory are better able to explain the concepts obornglobals! -ornglobals emergedbecauseo anincreasingroleo nichemarkets, advancesinprocesstechnologyandcommunicationtechnology, andmore means towards internationali#ation! $he growth o a born global isassociatedwithhighinnovativeskills, includingtheabilitytoaccesse*ective5D.as well as distribution channels, oten in partnerships, and involvingre/uent, intense, andintegratede*ortsacrossnations! $herisko enteringoreign markets is managed by exploiting simultaneous trade7o*s between entrymode commitment, country risk, and oreign revenue exposure in each country! 16Examples o early internationali#ation inmatureindustries can be oundin$relleborg 0ollowing Gppsala model1 and Skega 0not taking into account psychicdistance1! 2ate internationali#ation is also ound in $relleborg, now ac/uiring frmsthat were cheap, in di*erent industries!Early internationali#ation in high7growthindustries is I-S, Intentia, and I(S! Internationali#ation, as a learning process, and the concept o psychic distanceare most relevant when discussing export substitution market expansion! (.Is,which are the base or the search or resources and low9cost considerations, arenot likelytobeexplainedbyusingtheconcept o psychicdistance! (irmsindi*erent industries may have di*erent international patterns! It is important thattheanalysiso cultural di*erencesiscarriedoutatindustrylevel, asculturaldi*erences vary between industries! 4oreover, the individuals responsible or theinternational expansion have a great in+uence on the international development,asdopersonal networksandlanguageability! &nowledgeo oreignmarketsthrough personal experience is important or international development! .i*erenttheoriesareappropriatedependingonthefrmLsstageo internationali#ationand whether the industry is mature or growing?IndustryStage o internationali#ation o the frm4ature FrowthEarly 2earning process InternationalEntrepreneurship2ate >ligopolisticreaction.ynamic cluster#10 International Entrepreneurs$ip and 5eo%rap$i# &o#ation: .nEmperi#al Examination o New Venture Internationali/ation8 Bursuinginternationali#ationearlyintheir existenceenablesnewventurestoreali#e improved perormance, to achieve greater breadth, depth, and speed otechnological learning, and to exploit a competitive advantage! $he localenvironment is noted to be the primary source o resources needed oroperations! 5esourcesdevelopaccordingtotheneedso industriesoperatingtherein and conse/uently increase with the concentration o industry clusteringwithinagivenlocation, becominggeographiccluster locations! $heresourcebenefts o geographic cluster locations combined with the importance oresources to the internationali#ation process suggests that the greater availabilityo resources in locations with higher concentration o industry clustering wouldenable newventures operating therein to ac/uire the resources needed tointernationali#etheir operations! %owever, higher competitionover resourcesmay limit the resources a frm is able to ac/uire and the strategic initiatives it isable to pursue! Earlyinternationali#ationenablesanewventuretotakeadvantageo narrowwindows o opportunity to exploit products in international markets beorecompetitorsareabletoattainaoothold! $heindustry7specifcresourcesthatbecome available to frms as the industry concentration increases include18workers with important skill sets, speciali#ed inputs, access to buyers andsuppliers, andknowledgeabout opportunitiesandcompetitorsactivities! $hecreationandavailabilityo theseresourcesinitiallylowersthecostso entry,however, as subse/uent investments increase, competition or those resourcesincreases! -eing co7located with oreign frms increases the entrepreneurs consciousness oandresponsivenesstoopportunityininternational marketsandprovidesnewventures with an understanding o the standards re/uired or competing at aninternationallevel, making internationali#ing operations a more easible option!4oreover, networks are known to be a critical source o knowledge aboutinternational opportunities or new ventures and may provide greater access tocapital and knowledge spillovers! ntheother hand,argue that early internationali#ation may be not only an opportunity but also anecessity to ensure chances or growth, because opportunity windows are short!BC 0B$I1 ollows, late internationalisers willperorm better than early and rapidinternationaliser, whereasBC0IN)1 ollows, earlyinternationaliser will perormbetter than late internationalisers! $he3hineseexperienceisuni/ue! Normal entrepreneurshipembeddedinandprevailing on a developed market economy is unable to provide an explanation othe 3hinese experience! 3hinese entrepreneurs are very much bounded! -ecause o limited education and experience and institutional barriers, theounders were unable to correctly recogni#e the exact degree o marketintegration! 3hineseentrepreneurs tendtostart their business inthehomemarket! Experiential knowledgeorpre7frminternationali#ationexperienceandnetworksarenot thenecessaryconditionsor entrepreneurstoinitiatetheirinternationali#ation process, whether at an early or a late stage! Embedded in a transitional and emerging country, indigenous 3hineseentrepreneurs are bounded by their loweducation and experience and byunavorable institutional arrangements! $hey have limited technological,managerial, andlinguisticknowledge! $hus, theyhavelimitedcapabilities inassessing the degree o integration and homogeneity o the domestic and oreignmarkets and they have bounded entrepreneurial cognition o internationalbusinessopportunitiesandhencetendedtostart their businessinthehomemarket! Fiven the lack o business networks and experientialknowledge aboutoreign markets and operations, they either waited or windall or strove to obtainthe inormation by other means such as attending exhibitions! Fiven the boundedentrepreneurship, some o them carried out inward7oriented internationali#ationactivities to learn technologicaland managerialknowledge beore they startedoutward7orientedactivities! Fiventheboundedtechnological knowledge, theypursedacombinedstrategyo di*erentiationandcostleadership! (inally, thetiming o internationali#ation alone may not be su'cient to interpret frmperormance, as the latter may be in+uenced by many other actors! 1E#1:.roasteddu#!#anstill ;yaway: .#asestudyote#$nolo%y,nationality, #ulture and t$e rapid and early internationali/ation o t$e6rm8$hispaper outlinesandexploresthecomplexrelationshipsbetweenafrm,stechnological, national, and cultural context and its rapid and earlyinternationali#ationstrategies05EI1! Flobal technological environmentsremaindi*erentiated nationally! &orea has chaebols, diversifed groups owned andmanaged by one or more interrelated amilies! $he technology7based start7upsthat have emerged in the last ew years constitute an important departure rom&orea,s conventionally large7frmdominated industrial structure and or thegovernment,s historicalindustrialpolicy which was ocused towards supportingthechaebols! Now, thegovernment ollowsasegewhapolicyoencouraginginternationali#ation! $heindustrial andtechnological context or thisstudyismobile payments, an emerging sector in which &orea is recogni#ed as a worldleader! $he sector is a valuable ocus o study o 5EI due to the manyopportunities or start7ups to /uickly develop niche applications with internationalmarkets, operate as brokers between di*erent sectors o international businessand to contribute to international technical standards committees! "varo was led by a dynamic entrepreneurs with international managementexperience, attracted international venture capital and operated in a supportivegovernment policy environment! "mongst the actors identifed in the literature are resources including knowledgeand technology, and its industrial and environmental context! $he developmentanduseotechnology, knowledge, andinnovationasacoreresource, isveryimportant in IE! 5eproducing and distributing some knowledge7intensiveproducts, such as computer sotware, comes at a nearly marginal cost! 4oreover,theeconomicliecycleo manyknowledge7intensiveproductshasdiminisheddue to rapid technological innovation which urges frms to reach as manycustomersaspossiblewithintheever shorter e*ectiveliecycle! -ecauseothese eatures, reaching an international critical mass o users or an emergingtechnology is oten crucial or success, especially when network e*ects exist! (oran innovation to become commercially viable, complementary contributions arere/uired rom a variety o di*erent plays! $echnical standards greatly simpliy theprocessodevelopinganddesigning thecomponents osystemsandreali#ingcomplementarities o subsystems!Bositive eedback loops work in avor o themore widely accepted standards and thereore the market can potentiallybecome locked into such a standard! $he importance o nationaldi*erences isevident in the variation in the in+uences on entrepreneurs and entrepreneurialbehavior, suchas ownershippatterns, business ormationandco7ordination,management processes, and work and employment relations, across countries orregions! $here is an implicit role or culture in explaining cross7countrydi*erences! >pportunities or 5EI arein+uencedbyspecifccharacteristics o technologyproducts and markets! vertime, networkrelationshipsaretransormedromsimple, unidimensionaldyadic exchanges to a dence set o multidimensional and multilayeredorgani#ational relationships! $he organi#ation shits rom a reliance on dyadic tieswith amily and riends or previous contact to a stage where mutuality obusiness interests becomes clear, thus causing social and economic relationshipsto overlap! $hen the emergent frm develops added complexity, as re+ected in atighter integration o dyadic relationships and a greater number o economic ties!$his evolution helps provide stability or the network and positions the frm toleveragenetworktiesandmobili#emoreresourcesinthepursuit o growth!>therauthorsarguethat, intheemergentstageothefrm, networkswill becohesiveandcomposedprimarilyo socially embeddedties! Suchnetworksexploit strong and densely connected relationships or growth, and areconse/uently reerred to as path dependent! "s the frm moves into the growthstage, thenetworkchangestoencompassabalanceo embeddedandarm,slength economic ties that are more intentionally managed to explore growth! $heentrepreneurialnetwork will shit rom being identiy based to more calculativeover time!Networks are having structural dimensions and interactional dimensions! " frm,snetworkstructurecanbemeasuredit si#e, andtheextent towhichtiesareinterconnect, or whichactors arepositionedcentrallyvs peripherallyinthenetwork! Gnderlying this structure are the interactions that created it?interactions maniest as relationships that can be analy#ed in terms o whetherthey are social or economic in nature, how they originated, how long they haveexisted etc! Networks can be characteri#ed by dimensions that portray what thenetworklookslikeandwhoisinvolved! $heIN)literaturegenerallytakestheposition that IN)s are proactive and strategically aggressive! $heinternationali#ing frm,s network relationship are dominated by strong socialorpersonalelements!"lthoughties areimportantintheearly phasesoa frm,sevaluation, they are less in+uential over time! >nce the IN),s start7up process is1Jcomplete, organi#ational needs become more complex and necessitate non7socialrelationships! Economic rather than social ties may play a primary role throughIN) network evolution! $he results o the three cases show that all the initial ties were based on previouseconomic rather than social ties!"s each IN) network grew, it also decreased indensity! "lthoughthenetworkshadarangeo densitiesat start7up, theyallbecamelargerandlessdenseover time, allowingor diversegroupstoormwithin them! $hese results support the view that a network will shit rom beingdensetosparseaspart o anatural evolution! $urningtothestructural holemeasures, thenumbero actorsthateachventurewasdirectlyconnectedtoincreased! $his should create opportunities or control and inormation9resourceaccess that, arguably, couldbeuseul ininternationali#ation! $heconstraintmeasures decreased over time, indicating greater opportunities or action,because ewer relationships were redundant! (inally, each IN) showed high levelso closeness centralitythroughall threestages, andeachfrmincreaseditscloseness centrality rom stage 6 to 8! $he structural analysis suggests a linearpatho changewithineachnetwork! "ll threenetworks weredominatedbyeconomic ties! $he interactional analysis identifes more subtle pattern on a casebycasebasis! "lthougheconomictieswereprevalentthrougheachfrm,sliecycle, therelativeemphasis o tiecontent is uni/uetoeachIN)! "ll threenetworksshowedamixo tiesintermso direction, althoughoneparticularpattern can be noted! $he networks were characteri#ed by outward7directed andthird7party ties by the time the frms were internationali#ed and, notably,relativelyewinward7directedties! "lthoughthissuggeststhat theIN)sweremore intentionally managed, they were also path dependent! $he ventures hadnot yet attracted network contacts based on their own reputation and identity, inspite o the act that they had begun to internationali#e! $ie durability also seemsto be path dependent! $hus, although internationali#ation did not occur until eachIN) was well into its lie cycle, it resulted rom business ties established beore orduring conception, and all ties involved third7parties as catalysts! Networks will open doors or IN)s by providing market access, fnancing,distributionchannels, reerrals andapool o contacts or bothinternal andexternal development! $hus, network relationships are intangible resourcessalient to organi#ational growth! Such resources are also essential pre7internationali#ation, pre7growth and even pre7commerciali#ation, that is, rom thevery earliest stage o frm development? conception! "lthough network ties areconsistently ound to acilitate IN) evolution and also internationali#ation, theyare notabletobeeasily categori#ed!IN)s beneft romcompetitive capabilityand inormational advantages generated by their network, so IN) capabilities arenot onlyinternallygenerated! $hus, thenewventurecanleveragenetworkrelationships or international market advantage!s with aninternational orientation will exhibit a higher tolerance or ambiguity whenconronted with internationali#ation decisions than those with a lowerinternational orientation! (urthermore, 0%81, 3E>s with an internationalorientation will exhibit a lower perception o risk when conronted withinternationali#ationthan3E>swithout aninternational orientation, and3E>s0%=1 withahigher toleranceor ambiguitywill exhibit aproactivedispositiontowards internationali#ation! 0%A1 3E>s with a higher tolerance or ambiguity willperceive lower levels o risk associated with internationali#ation than 3E>s with alowtolerance or ambiguity,0%C1 3E>swith ahigher proactivedisposition willperceive lower levels o risk associated with internationali#ation than 3E>s with alower proactive disposition! (inally, 3E>s with perceptions o lower levels o riskassociatedwithinternationali#ationwill accesstointernational marketsasterthan 3E>s with higher perceptions o risk!$he results show that international orientation is not indicative o the individual,stolerance to ambiguity! $he three ormer constructs present signifcant e*ects inrelationtoriskperceptionwhenconsideringinternational activities, althoughtoleranceorambiguityonlya*ectsproactivityinanegativesense! 4oreover,risksperception is a cleardeterminant o thespeed o accessing internationalmarkets! Internationally oriented individuals appear to have a lesser riskperception derived rom international operation! "S such, it seem that the risk isnot @ust a matter o behavior, it is possible to reduce risk perception whether ornotthemanageristoleranttouncertainsituationsor hasthewill tochangethings! 883ognitive traits do exert an in+uence on the internationali#ation path ollowed byfrms! Broactivity is determined to a greater extent by tolerance to ambiguity inthe exporters and non exporters subsample, which may indicate that the frms inthese groups are more experience dependent! $here was no signifcantdi*erences between international entrepreneurs and the other internationali#ingfrms! Non7exporters do not associate their ability o conronting ambiguity withtheopportunityo engagingtheirbusinessinanewmarket! $heonlywayoreducing the risk rom oreign markets in the nonexporters sample appears to behaving a greater tolerance to ambiguity!Insummary, orall frmsinternational orientationwasoundtoleadtohigherlevels o proactivity and a lower perception o risk! %owever, internationalorientation was not ound to be signifcant in relation to tolerance o ambiguity!International orientation is indicative o a deeper and broader education,languageability, en@oymento travel andinternational experience! Individualswhoaremoretolerant o ambiguityarelessperceptiveo risk, but arenotproactive! >verall, those with lower levels o risk perception are more likely tointernationali#e more /uickly! Implications are that perception o risk is the keycognitiveactor asregardsrapidinternationali#ation, andthat riskperceptionmay be lowered through increasing the internationalorientation and increasingindividuals, tolerance to ambiguity!(inally, signifcant di*erenceswereoundbetweeninternational entrepreneursand non7exporters as regards the relationship between international orientationand tolerance to ambiguity, and between tolerance to ambiguity and proactivity!