eThesis - Kauppakorkeakoulun sähköiset gradut

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The International New Venture phenomenon continues to spark academic inquiries and challenge traditional models of firm internationalization. The growth and survival of international new ventures, however, have not been extensively studied. The objective of the thesis is to substantiate the growth phases and survival of Finnish B2B and B2C international new ventures that manufacture physical goods (PMINV).

The study addresses growth along the dimensions of foreign expansion as well as firm size and stipulates that a PMINV must choose between the Born Global and Born International -paths of accelerated internationalization. It projects four phases of PMINV growth and constructs a framework as well as propositions concerning the impact the industry, physical product, resources, capabilities, entrepreneurial orientation, lateral rigidity and market orientation have on PMINV growth and survival.

A multiple-case study, based on four active and one inactive Finnish PMINV, is done to determine the influence these factors have on PMINV advancement along the projected (1) introductory, (2) commercial breakthrough and foreign growth, (3) global breakthrough and expansion as well as (4) global rationalization and maturity -growth phases. Growth is classified as firm advancement along the phases, and survival as remaining in business. The results are also contrasted between B2B and B2C case firms.

Research findings suggest that the commercial and global breakthrough of a PMINV is positively related to the industry growth rate, industry globalization drivers, the amount of firm resources and managerial experience, the existence of substantive dynamic, and networking capabilities, product scope optimization, product adaptation and a high-level of entrepreneurial orientation in decision making. The global rationalization of a PMINV, in turn, is found to be positively related to increased global seller concentration, the existence of networking capabilities, pressures for both resource alignment and product standardization as well as a lower level of both industry growth rate and entrepreneurial orientation in decision making.

The findings also imply that especially the early PMINV growth phases are often mediated by survival crises. Management of the crises sees the firm progress along the phases, while severe mismanagement leads to non-survival. Consequently, the survival of a PMINV is found to be positively related to the industry growth rate, the amount of resources and managerial experience, the existence of substantive and dynamic capabilities, high networking capabilities, product scope optimization, and a lower level of both product adaptation and entrepreneurial orientation in decision making.

In comparison, globalization drivers and the amount of marketing resources are found to be more influential for the growth and survival of B2C PMINVs than B2B PMINVs. Also, the growth of B2C PMINVs is found to be positively impacted by a brand-oriented approach and the growth of B2B PMINVs by a market-oriented approach.