International New Ventures' Internationalisation Strategies: A Configuration Approach

Abstract

International new ventures (INVs) and born globals, companies that internationalise from inception, have existed for centuries, but they gained popularity only about 20 years ago. Since then the international entrepreneurship field has been well developed from the entrepreneurship and international marketing perspectives, but the strategic management perspective still lacks attention. Our work develops a framework for the INV internationalisation strategy formulation using existent international entrepreneurship and international business models. We conduct a phenomenological study employing a qualitative multiple case study research method. We sample 12 INVs from the Baltic States to test the framework and identify 4 viable INV internationalisation strategy configurations. Then we detect a link between business models, which we proxy by universal internationalisation goals, and INVs' internationalisation strategy configurations. The INVs that employ simpler business models and internationalise only to increase sales choose limited geographical scope and easier to implement strategy configurations, namely export start-ups and geographically focused start-ups. More complex business models that require internationalisation to survive impose more demanding global strategies – multinational traders or global start-ups. The framework employs a configuration approach, but is prescriptive in nature and is practically applicable in the INV's strategy formulation process to help founders develop and formalise cohesive viable international strategies.

Keywords: international new ventures, born globals, born global firms, internationalisation strategy framework, strategy configuration, international strategy, international entrepreneurship

JEL Classification: F23, M13, M16