International Entrepreneurship
Is starting a business in Canada the same as starting one in Japan? And what happens when a startup tries to sell to both countries on Day One?
International Entrepreneurship (IE) is a unique domain that sits at the intersection of international business, entrepreneurship, and strategy. While mainstream entrepreneurship often focuses on domestic growth, IE focuses on cross-border and cross-cultural dimensions.
Defining the Field
According to the seminal definition by Oviatt and McDougall (2005):
"International entrepreneurship is the discovery, enactment, evaluation, and exploitation of opportunities—across national borders—to create future goods and services."
This definition moves beyond simple "exporting." It suggests that the opportunity itself is international in nature.
The Three Pillars of Research
To synthesize the historically fragmented landscape of International Entrepreneurship, Jones et al. (2011) conducted a comprehensive review of over 300 academic articles. Through this meta-analysis, they successfully mapped the boundaries of the field by identifying three distinct, foundational streams of research:
1. Entrepreneurial Internationalization (The Process)
This foundational stream fundamentally asks "How?" It is deeply concerned with the internal mechanics and strategic processes of a new venture going global. Researchers in this domain study the specific tactical pathways early-stage companies take to enter and survive in foreign markets. A major focus is placed on how resource-constrained founders leverage their personal and professional networks (social capital) and utilize dynamic organizational agility to rapidly bypass traditional, slow-moving corporate expansion models.
2. International Comparisons (The Context)
Focusing intensely on the macro-environment, this stream asks "Where?" It relies heavily on cross-country and cross-cultural comparisons. The primary objective here is to understand how the fundamental nature of entrepreneurship adapts, scales, or mutates when placed in different geopolitical contexts. For example, researchers might investigate complex behavioral questions like, "How does baseline risk-tolerance and the cultural stigma of failure differ between founders in the United States versus those in China?"
3. Comparative Entrepreneurial Internationalization (The Hybrid)
Serving as the synthesis of the first two pillars, this advanced stream compares the actual process of internationalization across differing cultural and economic landscapes. Heavily dominated by Institutional Theory and Human Capital frameworks, it asks multi-layered questions such as: "Do startups originating in developing economies internationalize at a faster or slower velocity than those in stable, developed nations, and what structural factors drive that variance?" Essentially, it explores how the local "rules of the game" change the way the global game is played.
Connection to "Born Globals"
International entrepreneurship is closely related to the concept of the Born Global Startup.
In traditional models, companies grew big at home before going abroad. In IE theory, ventures often start right from the beginning with a business model where suppliers and customers are not in the same country, bypassing the domestic stage entirely.
Related Theories
International growth is not just about geography; it is about navigating diverse institutional and cultural logics. These frameworks explore the complexity of the global startup journey:
1. Context & Geography
- Institutional Theory: The "rules of the game" that vary drastically between markets like Canada and Japan.
- Institutional Voids: Navigating the missing infrastructure in emerging global markets.
2. Speed & Strategy
- Born Globals: Why some startups skip the domestic stage entirely to win global market share.
- Real Options Theory: Treating international entry as a strategic "Call Option" on the future.
Internationalization: Definitions and Models | Internationalization Strategy Course
Published: September 2021 • Source: Consultport
This strategic lesson introduces the core definitions and operational models of firm internationalization—the systematic process by which an enterprise increases its cross-border activities and adapts its products or services to navigate varying foreign political, cultural, and consumer landscapes. The video identifies three fundamental entry paradigms: the Uppsala Model (or Stage Model), the Network Model, and the Born Global Model. Focusing heavily on the classic Uppsala Model, the lesson explains how firms systematically mitigate risk by expanding in gradual increments. This involves prioritizing markets with low psychic and geographic distance (such as adjacent countries with shared cultural or monetary norms) and transitioning sequentially from low-commitment domestic exporting to high-commitment foreign sales and manufacturing subsidiaries.
References
Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537-553.