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Post-Entry Survival of Developing Economy International New Ventures: A Dynamic Capability Perspective

Khan, Zaheer, Lew, Yong Kyu (2018) Post-Entry Survival of Developing Economy International New Ventures: A Dynamic Capability Perspective. International Business Review, 27 (1). pp. 149-160. ISSN 0969-5931. E-ISSN 0962-9262. (doi:10.1016/j.ibusrev.2017.06.001) (KAR id:62033)


Recent research suggests that the capabilities needed for the survival of international new ventures (INVs) may be at odds with the original aims that had brought them into the international markets. INV mortality is exacerbated by uncertainty and lack of familiarity with the host market environment, which elevates the liabilities of newness, smallness, and foreignness in the initiating companies. We investigate the key factors that determine the post-entry survival of developing economy INVs by analysing in-depth seven software INVs originating in the developing economy of Pakistan. These INVs survived the 2000 dotcom crisis and the 2008 global financial crisis, and continue to grow. Based on a dynamic capability view on the INVs’ internationalization and survival from sensing-seizing-reconfiguration angles, we find the founders’ entrepreneurial orientations and network development capabilities (sensing), specialized product focus and niche market development (seizing), and transformation and renewal capabilities (reconfiguration) are the key capabilities that enhance the post-entry survival of these INVs. Importantly, we find that a stable leadership and the post-entry international experience of the leadership team continuously feed into facilitating the creation and maintenance of dynamic capabilities. This paper identifies key strategic aspects that determine the post-entry survival of the developing economy INVs.

Item Type: Article
DOI/Identification number: 10.1016/j.ibusrev.2017.06.001
Uncontrolled keywords: international new venture, internationalization, dynamic capability, post-entry survival, specialization, stable leadership
Subjects: H Social Sciences
Divisions: Divisions > Kent Business School - Division > Department of Marketing, Entrepreneurship and International Business
Depositing User: Zaheer Khan
Date Deposited: 12 Jun 2017 08:02 UTC
Last Modified: 04 Mar 2024 16:03 UTC
Resource URI: (The current URI for this page, for reference purposes)

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