The impact of networks on international entrepreneurial marketing among international new ventures

Abstract

International new ventures (INVs) are a relatively new research area. These entrepreneurial firms are young at the time of internationalization, earlier considered as an obstacle in accessing foreign markets. Because INVs internationalize rapidly, they face multiple challenges and resource constraints. Networks are a powerful option for these firms to access new markets. At the same time, marketing is crucial for newly established firms in order to gain clients and succeed. While networks are suggested to be important for marketing among INVs, research on the area is lacking. This research aims to provide insights to the field by studying how networks influence international entrepreneurial marketing (IEM) among INVs. Concerning networks, the concept of organizational networking was chosen as the key area of study based on the literature review. Moreover, the implications of IEM on INV performance are studied.

The research uses a quantitative strategy to which the data was collected with an Internet-based survey from Finnish firms a maximum of fifteen years old and with international sales. Firstly, potential respondents were contacted by phone. Secondly, the survey links were sent by e-mail, after which follow-up was required. At the end, 83 firms had reached a minimum of 25 % of sales outside of Finland within three years after their foundation and were considered as INVs.

The key research results suggest INVs to engage in both international organizational networking and international entrepreneurial marketing in foreign markets. Moreover, the use of international organizational networking leads to higher levels of IEM, suggesting INVs relying on network partners to gain valuable intangible resources to use in their marketing operations, particularly through enabling of opportunities. Finally, the results suggest that engaging in IEM leads to enhanced firm performance. As a consequence, INVs engaging in international organizational networking, and as such increasing their levels of international entrepreneurial marketing, are suggested to also positively influence their performance abroad.