The international entrepreneurial dynamics of

accelerated internationalisation

Keywords: international entrepreneurship; IED; born globals; OLI;

accelerated internationalisation

John A Mathews and Ivo Zander

Presented by: MSc. HOANG THI KIEU LY

 Author backgrounds
 John A Mathews (PhD, Imperial College London)
 Professor of strategic management at the Macquarie Graduate School
of Management, Macquarie University, Sydney.
 His research on international business and entrepreneurship
 Ivo Zander (Anders Wall Professor of Entrepreneurship at
Uppsala University)
 His research on regional agglomerations and the internationalisation of
research and development in multinational corporations
 Focus on how international innovation networks have changed the
multinational’s innovation capacity and innovation processes.
 His current research interests include entrepreneurship and the theory
of the firm, new business venturing in established corporations, and
the entrepreneurial dynamics of accelerated internationalisation.
 State of the arts
In the 1960s: burst onto the academic stage with In the 1980s and 1990s: the rise of postwar
multinational enterprises (MNEs) globalization with accelerated
internationalization.
IT systems, International law, Strengthened
Risk of protection of intellectual property rights
internationalization

Distinctive patterns of
Internationalization
“BORN GLOBALS”
In the 21th century: Network of MNEs expanded
through international partnerships.
NEW opportunities
NEW entry points into the Global
Economy
NEW pathways for International Mergers and
Expansion acquisitions are
Many firms accelerate growing.
their internationalisation
 Addressed Issues
Offer an international entrepreneurial
Accelerated internationalization
dynamics (IED) framework

Serve as a complement and addition to

the current conceptual toolkits
 PAPER STRUCTURE

New types of MNE Faced issues How incorporate in IB study

- The connection between the - Discovery of - How to incorporate

emergence, accelerated opportunities these 3 aspects of
internationalization of new types - The deployment of international
of MNE and big changes in the IB resources in entrepreneurship within
environment exploring these the field of IB study
- Capturing the reality of the opportunities
development of these firms. - International
competitors
 The changing setting for IB research
The changes: enhanced geographical mobility of individuals, more ready access to information
about internationally dispersed resources and customers, and regulatory changes that further
the integration of international markets for capital, products, and technology

The new species of MNEs are different from traditional multinationals in

that they are created by internationally experienced individuals and
global in their outlook from inception.
Creating the OLI framework for capturing the nature of the MNE
The OLI framework.7 emphasizes on internalization advantages, the established paradigm
involves little recognition of firms whose primary competitive advantage rests in networks of
external relationships.

The competitive network associated with privileged and early access to knowledge and
information, or the attractiveness or value as a collaborator that further enhances knowledge
assimilation capabilities
 International entrepreneurial dynamics
Bring together both the essential features of the entrepreneurial process: dynamic process that
disturbs the status quo, and various aspects of the process of discovering new business
opportunities and engagement in competition

Discovery of new business opportunities

Unobserved or latent combinations disequilibrium setting, and

of resources and customer demand unanticipated change caused by
incomplete information and uncertainty
 Resource Deployment
Construct a new and general perspective on internationalization
process, which starts with the geographical movements and pre-
venture activities of the entrepreneur, and translates into
differentiated entry points and pathways of resource
deployment in the global marketplace

Questions for Pathways of Resource Deployment:

Entry points and pathways plotted framework:
(1) The geographical dispersion of employed
skills, knowledge, and resources;
(2) The degree of internationalization of sales;
(3) The predominant way of accessing and
coordinating resources, activities, and
routines (Figure 1).
(1) How different entry points affect the survival
and performance of firms?
(2) Whether firms starting out from the same
entry point but subsequently adopting
different pathways?
(3) How firms operating on the basis of external
market relationships?
(4) Whether early or late establishment of in-
house market channels has any significant
impact on performance?
 Competitive Interaction
In the process of exploiting a new business opportunity, the entrepreneur must deal with
competition, whether in the process of seriously attacking incumbent firms or responding to
imitation by followers.

Strategic adaptation
History bias Institutional bias Cultural bias and adjustment
 Theoretical issues

Internationlization theory Alternative governance structures

Sources of Foreign Location Advantage Theory of sustaining competitive advantage

 Conclusions

Disequilibrium approach Dynamic approach

Focused on process models and dynamics rather than

comparative static and transaction costs frameworks

Discovery of opportunities,
Deployment of resources in the exploitation of the opportunities
Effects of engagement with competitors