AIB 2012 Conference Proceedings - Academy of International ...

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opportunities and challenges as framed by top management mental models. The punctuated equilibrium model
was not supported. Greiner's (1972) approach may, at the least in the first phases, contribute to explain BG
development. BGs face transitions that entail significant changes in the way how business is understood and
how the company is organized. However, the result from the transition is not fully congruent archetype as
Ambos and Birkinshaw (2010) suggested. Another important contribution is the finding that some prefoundation
features do persist for more than twelve years after company creation, namely the international
commitment. (For more information, please contact: Vítor Corado Simões, ISEG, Technical University of Lisbon,
Portugal: vcs@iseg.utl.pt)
The New Argonauts, International New Ventures and Performance Implication
Guohua Jiang, Temple University
Masaaki Kotabe , Temple University
International new venture (INV) is an important topic for scholarly inquiry in international entrepreneurship
literature. A new venture with an ethnically diversified founding team could leverage international experience
and network of each of its founders, thereby, influencing its recognition of opportunities and access to
resources to pursue internationalization strategy. This study explores the effect of founding ethnic composition
on a new venture's internationalization strategic choice. Then, we study the performance implication of new
ventures. We test hypotheses using longitudinal data of 4,928 new ventures in Kauffman Firm Survey. It is
found that more immigrant entrepreneurs are more likely to pursue INV strategy while more US citizen
entrepreneurs will pursue domestic new venture (DNV) strategy. Furthermore, INV has higher revenues than
DNV but there is no difference in profits between them. Finally, a new venture is established with the
entrepreneur's initial knowledge; while it is required to acquire and develop additional organizational technology
knowledge. Both are important for new venture performance. (For more information, please contact: Guohua
Jiang, Temple University, USA: tua63885@temple.edu)
An International Ambidexterity Model to Understand New Venture Internationalization and Growth
Fiona Xiaoying Ji, Kean University
Devi R. Gnyawali, Virginia Polytechnic Institute and State University
Donald E. Hatfield, Virginia Polytechnic Institute and State University
Firms use international operations to access external resources to exploit existing competences or explore new
market or technological knowledge; however after initial internationalization at a young age, international new
ventures might choose to go to similar foreign markets to leverage and exploit existing knowledge for growth or
they might continue experimenting with less related foreign markets. In this study, we propose that
international new ventures benefit from using an ambidextrous strategy for long-term performance employing
both exploitation and exploration. Using a sample of 311 international new ventures to test our hypotheses, we
found that the benefits associated with international exploration through early internationalization are realized
when a firm continues further commitment to exploitation capabilities so they can accomplish ambidexterity
learning from narrower scope of international expansion. (For more information, please contact: Fiona Xiaoying
Ji, Kean University, USA: xji@kean.edu)
Session: 2.4.12 - Interactive
Track: 13 – Teaching IB
Internationalizing and Enriching the Business Curriculum
Presented On: July 2, 2012 - 14:30-15:45
Chair: Vinod K Jain, University of Maryland, College Park
AIB 2012 Conference Proceedings
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