The internationalisation of TechnoLatinas from a resource-based perspective

• Published in: International journal of entrepreneurial behaviour & research 2021-03, Vol.27 (3), p.688-710
• Main Authors: Arroteia, Nuno, Hafeez, Khalid
• Format: Article
• Language: English
• Subjects: Emerging markets; Entrepreneurs; Entrepreneurship; Globalization; Human capital; Investigations; Market entry; Resource management; Value creation
• ISSN: 1355-2554; 1758-6534
• DOI: 10.1108/IJEBR-08-2019-0472

PurposeThis paper investigates how entrepreneurs in an emerging economy in Latin America bundle resources to develop capabilities related to entering new markets whilst creating value for their firms. In particular, the paper explores how individual resources (experiential knowledge and social networks) impact on entrepreneurs' capabilities to exploit new market opportunities.Design/methodology/approachThe paper employs a case study approach to investigate five cases of entrepreneurs driving technology-based businesses in Brazil. Effectuation theory is used as a lens to ascertain how resources impact on the decision-making capabilities of the entrepreneurs and firms. The research adopts a longitudinal approach, capturing data from thirty interviewees over a period corresponding to domestic and international market entry of these TechnoLatinas ' businesses.FindingsThis paper builds on previous resource-based view (RBV) studies by supplementing evidence that individual and firm-level resources determine the development of capabilities to exploit new market opportunities for new firms. The presence of experiential knowledge (in particular, business planning, market analysis and experimentation) and social networks (individual resources) drives to a mix of causal and effectual heuristics; however, in the presence of firm-level resources (human and financial capital), new entrepreneurs tend to shift towards a stronger causal orientation.Research limitations/implicationsThe case companies are high technology, knowledge-intensive Brazilian start-up firms sharing a similar institutional setting. Further research should include a more diverse range of cases including other sectors and other countries in Latin America adopting quantitative design to confirm and generalise these findings.Practical implicationsFor policymakers and practitioners, this research provides guidelines on how entrepreneurs' know-how and social networks can be enhanced by providing access to the international market to speed up the growth of a new firm. For entrepreneurship educators, this research explains how effectual orientation (EO) or causal orientation (CO) influences the entrepreneur to exploit the available resources to maximise the growth of businesses in the international market.Originality/valueThe resource-based literature usually ignores the challenges faced by new resource-constrained firms and the individual-level resources of the entrepreneurs. This research contributes to th