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The Power of International Sourcing : a case study of a Dutch new venture internationalizing towards Eastern Europe

Grit, L.J. (2015) The Power of International Sourcing : a case study of a Dutch new venture internationalizing towards Eastern Europe.

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Abstract:This is an explanatory study with the aim to give more insight in the internationalization process of new ventures. Traditional perspectives on internationalization are challenged by that of new ventures that internationalize at a much faster pace and with considerably less resources at their disposal. Specifically we will look at what mechanisms are in place to identify and pursue international opportunities, what are the incentives of internationalization, and how are these international processes established and accommodated? We will look at the origin to this internationalization and how this process is maintained in a later stage. With this in mind the following research questions have been formulated: How does the background of entrepreneurs influence the internationalization process? Which knowledge serve the internationalization process? How do networks contribute in establishing and maintaining the internationalization process? An in-depth case study of a new venture was performed. The subject of this research is a Dutch new venture which was established in 2010 and that has outsourced part of its processes towards Eastern Europe. Our findings show that the origin of the internationalization towards Eastern Europe lies in the background of the entrepreneur. This is where he developed his interest and knowledge for the region. Besides the interest and knowledge, the network of the entrepreneur in this region also developed at this stage. Regarding the internationalization process of our case firm several kinds of knowledge seem to accommodate this. First, we found that knowledge of the local market abroad enabled the entrepreneur to identify opportunities abroad. Second, the entrepreneur previous business experience in Eastern Europe accommodated the internationalization process of the case firm. Third, institutional knowledge also turned out to be valuable, because of the initial lack of institutional knowledge the entrepreneur engaged in a commission deal with the government which later was dropped because of an alleged election fraud. Additionally, new knowledge is accumulated by practice and experience but also to a certain extent provided by his network. Furthermore our findings show that key persons within the social network of the entrepreneur contributed to the establishment of the firm. The origins of these network relations started as close friendships. These social relations also contributed in the extension of the entrepreneurs’ network in that region. When doing business the entrepreneur relies on his social network that exists of relationships founded on the basis of trust and mutual respect. Besides friendship, bilateral long-term interest is also mentioned by the entrepreneur as an essential factor in maintaining business partners.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/68995
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