From Macro-Level Spillovers to Micro-Level Dynamic Capabilities: A Knowledge-Based Model to Explain New Ventures' Internationalization

Abstract

This paper explores the following relevant question: what are the environmental and internal knowledge-based factors that influence the propensity of new ventures to launch international expansion at or near their inception? Hence, this study contributes to the literature on born-global firms by introducing a multilevel approach that encompasses the internal dynamic capabilities and the external environmental conditions of the new venture within the entrepreneurship research field. We empirically test the effect of these potential determinants on the adoption of a born-global strategy by comparing this type of strategy with two other strategic options: international entrepreneurial firms that adopt a slower pace of internationalization and the decision to focus in the domestic market. Therefore, we act in response to the lack of integrative models and empirical research in this domain and extend the existing knowledge on international new ventures. The literature on knowledge based view and born global was used as a basis for drawing up the hypotheses, which were tested with data from 242 Spanish manufacturing SMEs representing manufacturing industries of a diverse technological content. Our results show that entrepreneurial spillovers and export spillovers of the firms' region of origin, as well as several dynamic capabilities are determinants of the adoption of a fast and committed internationalization.