Nuraddeen Sani Nuhu, Martin Owens and Deirdre McQuillan
The authors explore how home and host market institutions impact emerging market (EM) international entrepreneurship (IE) into developed markets.
Abstract
Purpose
The authors explore how home and host market institutions impact emerging market (EM) international entrepreneurship (IE) into developed markets.
Design/methodology/approach
Based on four case studies of Nigerian entrepreneurs expanding into the USA, this qualitative research adopts an institutional perspective to the study of EM IE.
Findings
The findings show home and host formal and informal institutions simultaneously enable and constrain the IE process. Weak home institutions shape the international opportunity recognition decision but seriously impede international opportunity development and exploitation activities in the developed market. EM entrepreneurs benefit from highly functioning regulation in the developed market whilst also experiencing discriminatory treatment from institutions. The findings of the study further show the positive and constraining effects of host institutions throughout the process.
Originality/value
Based on the findings, the paper details future research ideas, managerial implications and recommendation for policymakers.
Details
Keywords
Deirdre McQuillan, Pamela Sharkey Scott and Vincent Mangematin
The management of reputation and status is central to creative professional service firms (CPSFs) rendering the internationalisation process a particular challenge. The authors…
Abstract
Purpose
The management of reputation and status is central to creative professional service firms (CPSFs) rendering the internationalisation process a particular challenge. The authors build on arguments that internationalisation requires moving from outsidership to insidership within client networks and focus on how CPSFs build signals about quality to start this process. The paper aims to discuss these issues.
Design/methodology/approach
The exploration draws from the international business, professional services and organisational status bodies of literature. A multiple case study design was developed comprising ten Irish architecture firms. In-depth semi-structured interviews were conducted.
Findings
The findings clarify how relationships start in the internationalisation process through signal building about quality. This allows CPSFs to join client networks moving from outsidership to insidership. The findings systemise three different approaches for CPSFs: from outsidership to insidership within a local market network, within a global industry network and within a global project network.
Research limitations/implications
Research within other sectoral and geographical contexts could support transferability of the findings.
Practical implications
The study has implications for international business strategies as it identifies multiple paths to relevant network insidership and the tactical responses managers can use to achieve this.
Originality/value
The authors believe that incorporating signal-building mechanisms into the internationalisation process is a novel approach to theorizing about how CPSFs move from outsidership to insidership. The authors offer important theoretical insights into the international business, professional service firm and organisational status literatures. CPSF business leaders should benefit as it helps them to focus on a portfolio of signal-building approaches that can start the internationalisation process.
Details
Keywords
Deirdre McQuillan and Pamela Sharkey Scott
The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create…
Abstract
The leading frameworks of internationalization have contributed significantly to our knowledge of how firms internationalize, but do not fully explain how firms actually create and capture value from customers when internationalizing their activities. Understanding the value creation and capture activities defining their business model(s) is critical for firms moving into less familiar markets, and is particularly relevant for service firms where variability is an inherent feature of the firm/client experience. To address this gap, we take a business model perspective to analyze 144 internationalization events of 10 professional service firms. We find that the case firms adopted four different business models when internationalizing, and that single firms may utilize portfolios of business models. Our findings contribute to both the services internationalization and business model literatures by showing how variability in the internationalization process substantiates the need for business model portfolios.