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Name of IE: Jack Ma

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TABLE OF CONTENT

Introduction 3

Entrepreneurial Journey 5

Drivers and Motivations 6

Opportunity Recognition Process 7

Effectuation Principles 7

Entrepreneurial Traits 8

Motivation to Start 8

Barriers and Enablers 9

Barriers 9

Enablers 10

Type of Internalization 11

Conclusion 12

Reference 13

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INTRODUCTION

International entrepreneurs can be regarded as individuals who run businesses

across different countries or regions. According to Sarasvathy and Venkataraman
(2011), international entrepreneurs are individuals who "create new ventures that
operate across national borders". Also, an international entrepreneur is an individual
who identifies and creates opportunities to develop and grow a business venture
beyond their domestic market, using their skills, resources, and networks to navigate
the challenges of operating in a foreign environment (Saxenian, 2007).

Many entrepreneurs are drawn to the opportunities offered by international

markets. In fact, research suggests that entrepreneurs who pursue international
opportunities tend to have higher growth rates and greater profitability than those who
focus solely on domestic markets (Madsen et al., 2020).

According to Oviatt and McDougall (1994), international entrepreneurship is the

process of establishing, growing, and managing a company endeavour outside of one's
own country in order to capitalise on opportunities presented by the global market.
Global Entrepreneurship Monitor research indicates that international entrepreneurship
is playing a bigger role in economic growth and employment creation globally (Kerr et
al., 2018). This is especially true in developing nations where businesspeople are
promoting innovation and developing new sectors of the economy. It entails spotting
opportunities in international markets, customising goods or services to meet regional
demands, and overcoming the difficulties of cross-cultural communication.

International entrepreneurship is anticipated to play a bigger role in driving

economic growth and innovation as globalisation continues to change the corporate
landscape. These problems are ones that international entrepreneurs take on, using
their understanding of many cultures and markets to launch prosperous businesses that
operate on a worldwide scale. International businesspeople are essential to finding and
taking advantage of new opportunities as businesses grow abroad. International
entrepreneurs can be found in a variety of sectors, including technology, manufacturing,
and retail. They set up firms throughout numerous nations, growing such businesses
either immediately or gradually over time. Jack Ma is considered an international

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entrepreneur due to his success in expanding Alibaba Group, a Chinese e-commerce
company, to a global scale. According to Liu and Li (2019), "Alibaba has become a
global company under the leadership of Jack Ma and his team, expanding to more than
200 countries and regions and serving millions of customers around the world" (p. 120).
The purpose of this report is to….

ENTREPRENEURIAL JOURNEY

Jack Ma is a prominent international entrepreneur who has gained significant

recognition for his innovative approach to business. As the founder and former
executive chairman of Alibaba Group, he has played a significant role in the
development of China's e-commerce industry and the expansion of Alibaba Group into a
global tech giant. Jack Ma, born in 1964, is a Chinese entrepreneur and philanthropist
who is widely known for co-founding the Alibaba Group, a multinational technology
conglomerate headquartered in China (Li et al., 2021). Ma's personal and professional
life have been closely intertwined, as he has used his business success to pursue
philanthropic efforts. Ma's early career was marked by failure, including being rejected
from numerous job applications and even being denied a job as a waiter at a local hotel.
However, he persisted and eventually founded Alibaba in 1999, which went on to
become one of the world's largest e-commerce companies (Li et al., 2021).

Jack Ma's entrepreneurial journey began in 1999 when he founded Alibaba

Group, a Chinese e-commerce company that initially focused on connecting Chinese
manufacturers with buyers from other countries (Shi and Wang 2019). His vision was to
create a platform that would allow small and medium-sized businesses to compete with
larger companies by leveraging the power of the internet.

One of the key factors that contributed to Jack Ma's success was his ability to
identify and seize opportunities. When he noticed that many Chinese businesses were
struggling to obtain loans from traditional banks, he founded Alipay, a payment platform
that allowed small businesses to access capital more easily (Shi and Wang 2019).

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Similarly, he recognized the potential of China's growing middle class and expanded
Alibaba's services to include online shopping, cloud computing, and digital media.

Jack Ma's leadership style has also been a significant factor in his success as an
international entrepreneur. He is known for his unconventional approach to
management, which emphasizes collaboration, innovation, and a focus on the customer
(Zhang 2021). He encourages his employees to take risks and think outside the box,
and he has built a culture of entrepreneurship within Alibaba that has led to the
development of numerous successful businesses.

Ma has had great business success in addition to being quite active in

philanthropy. In 2014, he established the Jack Ma Foundation, an organisation
dedicated to business, environmental preservation, and education. The Rural Teachers
Programme, which strives to provide access to education in rural China, is one of the
activities the foundation has started and has donated millions of dollars to charity
causes (Li et al., 2021). Ma has experienced some difficulties in his career life recently.
He delivered a speech in 2020 criticising China's financial regulatory framework, which
resulted in the delay of Alibaba's first public offering and heightened government
oversight of the business (Li et al., 2021). Jack Ma's entrepreneurial journey is a
testament to the power of innovation, persistence, and a willingness to take risks.

Alibaba's success on a global scale has been significantly influenced by Ma's

cultural intelligence. When entering new markets, he emphasised the value of
understanding regional cultures and traditions. By collaborating with the Japanese
telecoms operator SoftBank in 2005, Alibaba entered the Japanese market. Ma grasped
the value of establishing connections with local partners who were familiar with the
Japanese market and culture. Alibaba was able to enter Japan through this relationship
and gain knowledge from regional authorities. According to Ma, a country's culture is its
soul, and if you don't grasp it, you can't conduct business there (Zhang, 2018).

Alibaba has partnered with organisations like Walmart, Ford, and Marriott
through strategic alliances to broaden its worldwide reach. Alibaba and Marriott

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collaborated to offer Chinese tourists travel services. Through this partnership, Marriott
was able to access the Chinese travel market, and Alibaba was given access to
Marriott's extensive global clientele (Alibaba Group, 2017). Ma also recognises the
value of adapting to regional markets. By modifying its business strategy to meet
regional needs, Alibaba has expanded into numerous new markets. For instance, when
Alibaba entered the Indian market, it introduced a brand-new platform called Paytm Mall
that was created especially for the Indian market. Due to this, Alibaba has been able to
compete with regional e-commerce players and establish a presence in the Indian
market. (2021; Boukhobza).

Additionally, Jack Ma's strategy for global entrepreneurship combines cultural

intelligence, strategic alliances, and a dedication to innovation. Alibaba has been able to
create a global presence and compete with established businesses in a number of
markets thanks to these techniques. Ma has been able to increase Alibaba's reach and
innovate to stay ahead of rivals by utilising his knowledge of regional cultures and
establishing smart alliances.

DRIVERS AND MOTIVATIONS

One of the most prosperous businessmen of our time is Jack Ma, a co-founder of
the Alibaba Group. Ma has frequently declared that he wants to create a society in
which smaller enterprises can compete with larger ones on an even playing field, and
he has worked relentlessly to realise this goal (Chen et al., 2020). Ma is driven by a
desire to have a positive influence on society. He has been a steadfast supporter of
environmental and social causes and has used his success to pursue charitable
endeavours. Ma has made it clear that he intends to use his riches to improve the world
and assist people who are in need (Chen et al., 2020).

Opportunity Recognition Process

Jack Ma's opportunity recognition process can be characterized by his ability to

identify and act on emerging market trends and technological innovations. Ma
recognized that the internet could revolutionize the way that businesses connect with

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customers and that there was a significant opportunity to create a platform that would
make it easier for small businesses to compete with larger ones (Chen et al., 2020). He
was able to identify the potential of the internet as a platform for business early on,
which led him to found Alibaba, an e-commerce platform that would become one of the
largest in the world.

Another key aspect of Ma's opportunity recognition process was his ability to
adapt and pivot when necessary. He recognized that the business landscape was
constantly evolving and that it was essential to be flexible and open to change. This led
him to diversify Alibaba's offerings beyond e-commerce, including investments in
fintech, logistics, and cloud computing (Chen et al., 2020).

Effectuation Principles

Effectuation is a decision-making process used by entrepreneurs to start and

grow their businesses. It emphasizes the use of entrepreneurial expertise, available
resources, and partnerships to develop innovative solutions to problems. Sarasvathy
(2001) identified five principles of effectuation. Jack Ma, the co-founder of Alibaba
Group, has demonstrated several effectuation principles in his entrepreneurial journey,
although only a few would be mentioned.

The first principle of effectuation is "Bird-in-Hand," which involves starting with

what you have and leveraging your existing resources (Sarasvathy, 2001). Ma
demonstrated this principle by starting Alibaba with a small group of friends and
leveraging his knowledge and experience in the e-commerce industry (Ref). EXPAND
OR EXAMPLES

The second principle of effectuation is "Affordable Loss," which involves taking

calculated risks and limiting potential losses (Sarasvathy, 2001). Ma demonstrated this
principle by starting Alibaba as a small venture and gradually scaling up the business as
he gained more experience and resources (Ref). EXPAND OR EXAMPLES

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 The third principle of effectuation is "Crazy-Quilt," which involves leveraging
partnerships and relationships to achieve your goals (Sarasvathy, 2001). Ma
demonstrated this principle by partnering with other companies and investors to expand
Alibaba's reach and capabilities (Ref). EXPAND OR EXAMPLES

Entrepreneurial Traits

Jack Ma, has demonstrated several key entrepreneurial traits that have been
instrumental in his success as an entrepreneur. Some of his traits include;

 Visionary thinking: Jack Ma has a visionary thinking style, which enables him to
anticipate future trends and identify opportunities for growth. He recognized the
potential of the internet as a platform for business early on, which led him to found
Alibaba, an e-commerce platform that would become one of the largest in the world
(Chen et al., 2020).
 Risk-taking: Jack Ma is not afraid to take risks and has a high tolerance for
failure. He started Alibaba with a small group of friends and took calculated risks to
gradually scale up the business as he gained more experience and resources
(Sarasvathy, 2001).
 Innovation: Jack Ma values innovation and encourages his employees to think
creatively and come up with new ideas. He invested heavily in developing Alibaba's
mobile capabilities, allowing the company to capitalize on the trend of consumers using
their mobile devices to shop and make purchases online (Chen et al., 2020).

Motivation to Start

Jack Ma was motivated to start his entrepreneurial journey for several reasons.
Ma was frustrated with traditional employment opportunities and felt that he was not
finding fulfillment in his work. According to Ma, "I applied for 30 different jobs and got
rejected. I went for a job with the police; they said, 'You're no good.' I even went to KFC

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when it came to my city. Twenty-four people went for the job. Twenty-three were
accepted. I was the only guy..." (Goudreau, 2014).

Also, Ma saw an opportunity to use the internet to connect China with the rest of
the world and create new business opportunities. He recognized that the internet had
the potential to transform the way that people do business and wanted to be at the
forefront of this transformation (Goudreau, 2014). Likewise, Ma has a passion for
entrepreneurship and has always been interested in starting his own business. He saw
the founding of Alibaba as an opportunity to pursue this passion and make a meaningful
impact on the business world (Goudreau, 2014).

Overall, Jack Ma's motivations to start his entrepreneurial journey were driven by
a desire for fulfillment, a vision to connect China with the world, a passion for
entrepreneurship, and a belief in himself and his vision for the future.

BARRIERS AND ENABLERS

Barriers

Despite his many successes, Jack Ma also faced numerous barriers and
challenges throughout his entrepreneurial journey.

When Jack Ma first started Alibaba, he struggled to secure funding for the
company. In the early days of Alibaba, Ma struggled to raise capital from investors who
were skeptical of his vision and business model (Yunus, 2019). According to Ma, "The
first time I went to Silicon Valley, nobody wanted to give us money. I talked to more than
30 venture capitalists, and everybody said no" (CNN Business, 2019). He initially turned
to friends and family for financial support, but this was not sufficient to fund the
company's growth. Ma eventually succeeded in securing funding from venture
capitalists, but this process was challenging and required persistence and determination
(Wang et al., 2016).

Another major barrier that Ma encountered was the lack of technical expertise.
He did not have a technical background and was not proficient in programming or

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software development. This was a major obstacle when he started Alibaba, which was
an internet-based business. However, Ma overcame this barrier by hiring experts and
building a strong team of professionals who could provide the necessary technical
expertise (Wang et al., 2016).

Finally, Jack Ma faced significant competition in the e-commerce industry, both

domestically and internationally. This competition posed a major challenge for Alibaba,
as it had to compete with established players like Amazon and eBay. However, Ma was
able to differentiate Alibaba by focusing on the Chinese market and creating a platform
that was tailored to the needs of Chinese consumers (Wang et al., 2016).

Enablers

Jack Ma's entrepreneurial success was enabled by several factors. One of the
major enablers that played a role in his success was a supportive family and
community. Ma's parents encouraged him to pursue his dreams, despite his struggles in
school and the challenges he faced in finding employment (Goudreau, 2014). In
addition, Ma's hometown of Hangzhou was known for its entrepreneurial culture, which
provided a supportive environment for his entrepreneurial endeavors (Wang et al.,
2016).

Another enabler of Jack Ma's success was his ability to identify and capitalize on
emerging opportunities. Ma recognized the potential of the internet early on, and he was
able to leverage this emerging technology to build Alibaba, which has become one of
the world's largest e-commerce companies (Wang et al., 2016).

Jack Ma's success was also enabled by his leadership and management skills.
Ma was able to build a strong team and create a culture of innovation and risk-taking at
Alibaba. He was known for his charismatic leadership style and his ability to motivate
and inspire his employees (Goudreau, 2014).

Overall, Jack Ma's barriers in his entrepreneurial journey was overcame through
hiring experts, securing funding through venture capitalists, and differentiating Alibaba

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by focusing on the Chinese market. Likewise, his success was enabled by several
factors, including a supportive family and community, his ability to identify and capitalize
on emerging opportunities, and his leadership and management skills.

TYPE OF INTERNALIZATION

Jack Ma's approach to internationalization is consistent with the network

approach theory. The network approach theory posits that firms can leverage their
network of relationships to overcome the challenges of internationalization and gain
access to new markets (Johanson & Mattsson, 1988).

Jack Ma recognized the importance of building relationships with key

stakeholders to enable Alibaba's international expansion. For example, he established
relationships with the Chinese government to gain access to new markets and obtain
regulatory support for Alibaba's business activities (Wang et al., 2016). In addition, Ma
invested heavily in building a network of relationships with suppliers, distributors, and
other stakeholders to enable Alibaba's operations.

In line with this theory, Alibaba has focused on building relationships and
partnerships with local firms and organizations in the markets where it operates. When
Alibaba entered the Indian market, it formed a joint venture with the Indian
conglomerate Reliance Industries, which helped Alibaba navigate the complex
regulatory environment in India and gain access to local knowledge and resources
(Karnik & Kamath, 2016).

The network approach theory to internalization has been a successful strategy

for Jack Ma and Alibaba in their internationalization efforts. By leveraging relationships
and networks with local firms and organizations, Alibaba has been able to expand its
global reach and establish a presence in multiple markets around the world.

Apart from Alibaba, Jack Ma's subsequent ventures have followed different
routes to internalization. In his venture in the financial technology sector, Ant Financial,
Ma adopted a more aggressive approach to internationalization by acquiring foreign

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firms and expanding rapidly in overseas markets. Ant Financial acquired the US-based
money transfer service MoneyGram and the UK-based currency exchange company
WorldFirst to expand its reach in the global market (Choudhury, 2018).

However, it is worth noting that even in Ant Financial's internationalization efforts,

Ma leveraged relationships and networks to gain a foothold in overseas markets. For
instance, Ant Financial formed a partnership with the Thailand-based payment service
provider, Ascend Money, to expand its reach in Southeast Asia (Zhang, 2018).

CONCLUSION

In conclusion, Jack Ma is a successful entrepreneur who has founded several

ventures, including Alibaba and Ant Financial. He is known for his unique leadership
style and entrepreneurial traits, such as his risk-taking ability, creativity, and
perseverance. Jack Ma's success can be attributed to various factors, such as his
network approach to internationalization, which he leveraged to expand his ventures
overseas. Additionally, his enablers, such as his team, his vision, and his motivation,
played a significant role in his success. However, Jack Ma also faced several barriers in
his entrepreneurial journey, such as regulatory challenges, competition, and cultural
differences. Despite these challenges, Jack Ma has continued to innovate and pursue
his vision, leaving a significant impact on the global business community.

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