Service Content and the Internationalization of Young Ventures: An Empirical Test

Young ventures are becoming increasingly sophisticated about internationalizing their firms. However, this article suggests that young ventures may be overlooking the influence of service content on internationalization. This research argues and tests the proposal that service content is a critical...

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Bibliographic Details
Published in:Entrepreneurship theory and practice 2007-03, Vol.31 (2), p.233-256
Main Authors: Cloninger, Peggy A., Oviatt, Benjamin
Format: Article
Language:English
Subjects:
Business management
Business practices
Business services
Empirical tests
Entrepreneurship
Globalization
International relations
Internationalization
Management
Organizational effectiveness
Services
Startups
Studies
U.S.A
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Summary:Young ventures are becoming increasingly sophisticated about internationalizing their firms. However, this article suggests that young ventures may be overlooking the influence of service content on internationalization. This research argues and tests the proposal that service content is a critical variable influencing both the propensity of young ventures to internationalize and their location decisions. Employing a sample of 190 U.S.–based firms, this study measures the service content characterizing a venture's output, and found (1) the service content of the outputs of international young ventures is significantly different than the service content of domestic young ventures; and (2) the service content of the outputs of international young ventures is significantly different in different overseas locations.
ISSN:1042-2587
1540-6520
DOI:10.1111/j.1540-6520.2007.00171.x