KVS9 – ESSAY 1

Course Assignment: International Entrepreneurship

Author:
Chandrima Chowdhury

Student number:
526275_288689_Y

Lecturer:
Niina Nummela

15.08.2022
Turku
International Entrepreneurship
Entrepreneurship refers to the new venture but when it covers the dimension of internationalization
to exploit the opportunities and to utilize the resources (Oviatt and McDougall, 2005) unboundedly
in various countries, the emergence of international entrepreneurship comes to the limelight.
The ventures that approach IE are considered Born- global startups(Knight and Cavusgil, 2004)
which thrive for international markets to perform with supremacy and to scale their growth from
the beginning of foundation.IE is consist of some basic elements that proves the intersect of
international business and entrepreneurship.
First element is the search for opportunities and their exploitation
Second element is proactivity and innovativeness, which accompany the formation and
exploitation of opportunities and are both key attributes of entrepreneurs and their organizations
distinguishes
Third element is IE is the geographic perspective: the formation and exploitation of opportunities
happen across national borders.
Forth element is the attention to the temporal dimension of entrepreneurial phenomena. Time has
a central role in IE and can be expressed through dimensions like precocity (firms going
international very early in their life) and speed (fast international growth).
Two types of international entrepreneurship are in popularity face i) Born Global, that serves
global niche market from the inception ii) International New venture. There are plenty of born
global companies in Latin America such as Platzi, an online course platform, founded by a
Colombian and a Guatemalan whose target audience are Spanish speakers. Other categories of IE
beyond these above mentioned two are

What are the key drivers of international entrepreneurship?

The firms, act on the international level at diverse cross border market since the inception, have
been emerging in an increasing number and gradually it is becoming a norm among the firms with
innovative product and services. Such phenomenon is the contribution of some key drivers that
describe the international dynamism of Born Global firms. Here based on the key drivers
mentioned in the referred book (International Entrepreneurship, no date) are discussed and
analyzed covering other scholarly work done on this theme.
Five different areas have been identified and researched as key drivers in the study of (Lima and
de Oliveira Cabral, no date). Those are
1. Entrepreneurial Drivers
Sophisticated and networking capabilities, global vision, founder’s experience are attributed as the
entrepreneurial drivers. In terms of sophisticated Capabilities, it refers to the capacity and
experience in seeking international opportunities, risk taking and engage in product-market
innovation. Networking capabilities enables an entrepreneur to identify and explore new market
opportunities. Visualization of a global consumer base business model triggers a venture to be
international from the beginning. To establish such business model, the entrepreneur is the only
responsible person, weaponing over his/her sophisticated capabilities , interesting utilize dynamic
networking capacity to minimize the risk of entering the global market (Mort and Weerawardena,
2006).At the same time it generates competitive edge networking becomes hub of growth. On the
contrary, partnership particularly the right one is not an easy task as well.
2. Economic drivers
Widening regionalization in terms of entrepreneurship has a following consequence of market
changes externally and internally. Such market condition is competitive, complicated and
vulnerable to any changes.(G\lodowska, Pera and Wach, 2016) tried to figure out the external
environmental influence on IE based on the case study on Polish Businesses where it has been
depicted that the degree of internalization of respective businesses from niche market stimulate
in greater way. For example, When the domestic market is saturated in terms of supply and
demand as well and there are some corners of the world left unserved and in demand, such
scenario encourages entrepreneurial behavior to look for opportunities and earn profit. The
internal factor is the product or service itself that has some features that perfectly fits to the
international arena. According to the study of (Lima and de Oliveira Cabral, no date), founders
of born global firm always find themselves liable to overcome all sorts of smallness and
engrossing newness to serve at macro or global level.

3. Technological driver
Technology is considered as the basic or principal driver of International Entrepreneurship.
Technological advancement in terms of production, transportation, communication as a whole to
maintain the supply chain altogether serves all possibility to participate in international business.
The scholars in there study (Brach and Naudé, 2012) positioned to prove that the firms which has
ISO accreditation, websites and innovative in product, service and in process of doing business by
introducing new technology are more viable to operate in foreign markets.

Why would you perhaps see industry- and country-specific differences in the emergence of
international entrepreneurship?
Country specific emergence of international entrepreneurship deals with
- Regulatory, cultural formulation of a particular country decides on the start and expansion
of IE. For example, In Bangladesh, alcohol (beer) consumption and purchase are strictly
restricted by regulation whereas in Finland it is a common phenomenon. In addition, one
needs to have license to purchase of alcohol that is a funny part in Finland.
- Country specific small and non-attractive market in terms of competition, demand pattern
pushes many ventures even the new one to go global. Tech-based companies in Bangladesh
rendering SaaS products are born global since the demand for the digital product is not
enormous in this developing country.
- Openness to international trade of a country is indispensable enabler of growth that
smoothen or hinder the way to international markets. Openness determines new market
opportunities, stronger productivity, innovation. In such scenario, Bangladesh is lagging
behind as a global venture would not find the boundary as favorable in setting up a business
as the business installation cost and time and others dimensions are hard to meet.
- Allocation of resources and adequate support at the macro level mold the emergence of IE.
Finland has the structure to (social benefits, even Alto University has distinct facility
known as ‘Start-up Sauna’ encourage and increase the number of start-ups. On the contrary,
it is almost impossible to start a venture in Bangladesh with the help of bank loan. As banks
don’t provide money without any collateral and start-up doesn’t have access to any assent
at the beginning.
Industry specific emergence less tied to the countries rather the ventures are more affected by the
features of the particular sector.
- Industry specific emergence of IE deals with universal consumer needs, global
competition, competitive pricing. Therefore, ventures need to be careful about choosing
the right entry mode. Mac Donald is now a big giant in the food industry because of its
strategic decision making of entering global market through franchising. Local adaptation
 is crucial for food sector to grab potential food lover. Mac Donald emphasized in localizing
their food to a particular global market.
- Business related factors such as labor, capital often described the characteristics of specific
industry and its afterward emergence. Garment industry is labor intensive globally, these
features allow Bangladesh to build an economy based on garments exploiting cheap labor.
Today Bangladesh is the second largest exporter of ready-made garments.
This is how I see the emergence of IE from different angles.

International entrepreneurial activities are not exclusive domain of SMEs only, but they may
be identified in larger firms as well. How does the corporate and/or subsidiary context
change the phenomenon?
Presently orientation and expansion to international market is a common scenario for any kind of
business organization regardless of their size. Sensing, seizing and transforming business
opportunities in IE concept for large and established firms is comparatively relevant due to its
nature of being stable in fast changing global market. Basically, IE for larger company is
“corporate Entrepreneurship” that evolve with the creation of competitive advantage (Åmo and
Kolvereid 2018). For larger firms respond to rapidly changing business environment, innovation,
customer need via CE is the key to grow. Corporate entrepreneurship in large firms works in two
ways; first an established corporation either develops an idea internally, builds the startup, casts it
off externally, and then brings the startup back into the wider organization at a later stage.
Or the company identifies an early-stage startup to collaborate with or acquire, and then assimilates
the business into the wider organization. CE could be corporate venturing, strategic
entrepreneurship or merger or acquisition. To inculcate the concept IE in the larger firms in another
way of corporate entrepreneurship, every division/subsidiary of established firm must act as an
individual start-up. Each corporate division looks for proactiveness to generate new ideas,
innovation that eventually assist the large firm to sustain globally. Therefore, it is evident to me
that the conceptual basis of IE in larger firms is similar to the context of SMEs. The phenomenon
would not change significantly. Sometimes larger firms have better access to resource
(human,finance), structure, network than SMEs that favorably facilitates their IE or CE activities.
Yamaha is a Japanese manufacturing company of motorcycle is known as a parameter of success
In Indian market. Nippon Gakki Co. is a company engaged in manufacturing aircraft propellers
and other war-related equipment during 2nd world war. Besides this, engineering division at
Nippon Gakki started developing its another product line; motorcycle by imitation from German
manufacturer DKW. On July 1st, 1955, the Motorcycle division was separated as a form of
strategic entrepreneurship from Nippon Gakki Co. and was renamed Yamaha Motor Co. Ltd as an
International New Venture. This is significant example of CE where Yamaha is a born-again global
firm.

Reference
Brach, J. and Naudé, W. (2012) ‘International entrepreneurship and technological capabilities in
the Middle East and North Africa’.
G\lodowska, A., Pera, B. and Wach, K. (2016) ‘The International Environment and Its Influence
on the Entrepreneurial Internationalization of Firms: The Case of Polish Businesses’, Problemy
Zarządzania, 14(62), pp. 107–130.
International Entrepreneurship (no date). Available at: https://web-p-ebscohost-
com.ezproxy.utu.fi/ehost/ebookviewer/ebook/bmxlYmtfXzE4NTU2NDlfX0FO0?sid=6fb464af-
06b0-4c38-a011-76dbf923fafb@redis&vid=0&format=EB&rid=1 (Accessed: 4 August 2022).
Knight, G.A. and Cavusgil, S.T. (2004) ‘Innovation, organizational capabilities, and the born-
global firm’, Journal of International Business Studies, 35(2), pp. 124–141. Available at:
https://doi.org/10.1057/palgrave.jibs.8400071.
Lima, A.C. and de Oliveira Cabral, J.E. (no date) ‘Drivers and Challenges for
Internationalization–A Study with Born Global Firms’.
Mort, G.S. and Weerawardena, J. (2006) ‘Networking capability and international
entrepreneurship: How networks function in Australian born global firms’, International
marketing review [Preprint].
Oviatt, B.M. and McDougall, P.P. (2005) ‘Defining International Entrepreneurship and
Modeling the Speed of Internationalization’, Entrepreneurship Theory and Practice, 29(5), pp.
537–553. Available at: https://doi.org/10.1111/j.1540-6520.2005.00097.x.

Åmo, B.W. and Kolvereid, L., 2018. Corporate entrepreneurship. The SAGE Handbook of
Small Business and Entrepreneurship. New York: Routledge, pp.289-278.