AIB 2012 Conference Proceedings - Academy of International ...

TUESDAY
We conducted a grounded study of a recent microfinance crisis in the Indian region of Andhra Pradesh to
generalize more broadly about the role of the state in the success of business-led efforts to alleviate poverty at
the base of the pyramid (BOP). While the existing BOP literature often sees business as a solution to failures of
the state, our case analysis shows that market participants in Andhra Pradesh increasingly looked to the state
as a solution to the perceived failure of the market. A comparison of the rapid rise and fall of the microfinance
industry in Andhra Pradesh to the slower but more stable evolution of microfinance in Bangladesh further
supports the argument that the state plays an important role in shaping the long-term success of BOP
innovation. We discuss the implications of a more synergistic perspective on states and markets for future BOP
research. (For more information, please contact: Joshua K. Ault, University of Victoria, Canada: jault@uvic.ca)
Session: 3.4.11 - Interactive
Track: 11 - SMEs and Entrepreneurship
Strategic Issues in Internationalizing Entrepreneurial Firms
Presented On: July 3, 2012 - 14:30-15:45
Chair: Kaveh Moghaddam, Old Dominion University
Foreign Knowledge Acquisition Strategies and Start-Up Value to Venture Capital Investors
Anupama Phene, George Washington University
Jennifer Spencer, George Washington University
Nidia Banuelos, University of Chicago
Our study examines the relationship between a start-up's foreign knowledge acquisition strategies and the level
of venture capital (VC) investment it is able to attract. We evaluate start-up strategy to acquire foreign
knowledge through three mechanisms, foreign knowledge sourcing, collaborations with foreign partners and
overseas innovation activity by the firm. We hypothesize that adoption of these strategies increases the value
perceived by VC investors and has a positive influence on VC investment in the startup. We posit that the
strategies differ in the extent to which the startup is embedded in the global innovation system and propose
that more embedded strategies lead to more VC investment. We test our hypotheses in a sample of U.S.
biotechnology startups and find support for the effects of foreign knowledge acquisition strategies on VC
investment. Interestingly less embedded strategies have a greater effect on VC investment. An analysis of
foreign firm innovative presence in the location of the start-up, suggests that it operates as a complement to
foreign knowledge acquisitions strategies. (For more information, please contact: Anupama Phene, George
Washington University, USA: anuphene@gwu.edu)
SME Adaptation for Survival in Economic Crisis: A Customer Relationship Orientation Viewpoint
Melodena Stephens Balakrishnan, University of Wollongong in Dubai
Abraham Koshy, IIM A
This study looks at the adaptation strategies SMEs employ when faced with a financial crisis. The findings prove
the current relevance of the Miles and Snow typology and provide a practical framework for organizations to
monitor the impact of change. Through a detailed literature review it consolidates and classifies marketing
strategies available to organizations during change. The study also highlights the importance of customer
relationship orientation and its implication on adaptation to turbulent times. This exploratory study uses
qualitative methodology to study the effect of turbulence on an organization looking specifically at their market
strategy adoption. It is a cross-country study looking at 20 firms based in Taiwan and India. (For more
information, please contact: Melodena Stephens Balakrishnan, University of Wollongong in Dubai, United Arab
Emirates: melodenabalakrishnan@uowdubai.ac.ae)
AIB 2012 Conference Proceedings
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