Series editor(s): Professor Jerome Katz and Professor Andrew C. Corbett
Subject Area: Enterprise and Innovation
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|Title:||International Social Capital, Technology Sharing, and Foreign Market Learning in Internationalizing Entrepreneurial Firms|
|Author(s):||Erkko Autio, Harry J. Sapienza, Pia Arenius|
|Volume:||8 Editor(s): Dean A. Shepherd, Jerome A. Katz ISBN: 978-0-76231-227-6 eISBN: 978-1-84950-356-3|
|Citation:||Erkko Autio, Harry J. Sapienza, Pia Arenius (2005), International Social Capital, Technology Sharing, and Foreign Market Learning in Internationalizing Entrepreneurial Firms, in Dean A. Shepherd, Jerome A. Katz (ed.) International Entrepreneurship (Advances in Entrepreneurship, Firm Emergence and Growth, Volume 8), Emerald Group Publishing Limited, pp.9-42|
|DOI:||10.1016/S1074-7540(05)08002-5 (Permanent URL)|
|Publisher:||Emerald Group Publishing Limited|
|Article type:||Chapter Item|
Internationalizing new firms face the dual challenge of overcoming the liabilities of newness and liabilities of foreignness (Stinchcombe, 1965; Dunning, 1981; Zaheer, 1995). Because of their newness, new firms are constrained in their ability to access external resources required for survival and growth. Because of their foreignness relative to the foreign target market, internationalizing firms are disadvantaged relative to domestic firms when establishing business relationships. These disadvantages are exacerbated by the additional knowledge inputs required by the internationalization process itself: internationalizing firms face the dual challenge of both learning how to do business in a new national and institutional environment while also learning to manage the inherently complex international business organization (Johanson & Vahlne, 1990).
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