International Corporate Entrepreneurship - Literature review Example

? International Entrepreneurship Literature Review Introduction The paper aims to render potential reviews on peer-reviewed journal articles and academic sources like books related to the dimension of international entrepreneurship. The concept of international entrepreneurship has gained significant importance owing to the emergence of a globalised economic system. Nations around the world in the globalised system are operating based on mutual cooperation and cooperativeness owing to the formation of international trade and commerce associations and hubs. Entrepreneurial activities have started internationalising through identification and exploration endeavours pertaining to emerging opportunities. However international entrepreneurial efforts to gain hold of significant opportunities are disturbed by certain factors limiting accessibility of the international entrepreneur to such opportunity zones. The paper relating to the above fact tends to reflect on the importance of opportunities and how the paradigm of accessibility enhances the value addition to the opportunity exploration activities of the international entrepreneur. International Entrepreneurship Baker, Gedajlovic and Lubatkin (2005) and Giamartino, McDougall and Bird (1993) observe that the concept of international entrepreneurship gains potential in the amalgamation of two distinct sets of studies relating to the domain of ‘International Business’ and ‘Business Entrepreneurship’. The main focus of the International Entrepreneur like the Regional or Local Entrepreneur lies in investigating, evaluating and thereby optimally exploiting the emergence of new opportunities in the global landscape. The international entrepreneur having gained sight of new opportunities relating to the specific or diversified business domain in the international arena tends to evaluate the accessibility parameters to the same. Thus business decisions are framed not only in terms of the opportunities sighted but also in the process of gaining optimal benefits related to such. Henceforth a successful entrepreneur not only endeavours to locate significant opportunities but also tries to evaluate the institutional and infrastructural support pertaining to the different international regions (Baker, Gedajlovic and Lubatkin, 2005, p.492, 496; Giamartino, McDougall and Bird, 1993, p.39). Plattner (2005) and Peterson (1988) remarks that the dimension of international entrepreneurship gains dominance in the light of globalisation. The emergence of globalization has led to the growth of enhanced cooperation pertaining to transnational boundaries thereby helping in the mutual growth of different nations. No nation in this globalized climate tends to operate in an isolated mode. Thus solutions to entrepreneurial and other issues are sought from amongst the cooperation and support rendered in terms of infrastructures, policies and opportunities by other global nations that work to form a mutual association like Commonwealth Nations (Plattner, 2005, p.510; Peterson, 1988, p.7). Probing for International Opportunities Czinkota et al (2011) highlights that international companies to become successful in the globalised scale are required to conduct an effective probe to the level of changes occurring in the external environment pertaining to different international regions. The international entrepreneurs to succeed in the highly competitive and changing global business environment are required to understand the pattern and level of alterations happening and thereby effectively adapt to such changes. Organisational managers are thus required to reorganise and restructure the business concerns to gain ease of access to potential opportunities and resources in the international business arena (Czinkota et al, 2011, p.25). The international entrepreneur in terms of Czinkota et al (2011) and Secor (2007) is not required to evaluate the characteristics or features of diverse international zones ranging across different geographies in a separate fashion. Rather the entrepreneur is required to observe an interrelation amongst the different features reflected in such international markets to gain hold of the right business opportunity. The case of the Ruhr Valley in Germany reflects that the region tends to attract iron and steel production manufacturers owing to the presence of large scale resources in the form of iron ore and other deposits of coal and limestone that largely facilitate the production process. Similarly the case of Singapore is also presented that provides a combination pertaining to the location and the presence of the large deep-water port. The global entrepreneur is required to closely observe such large scale interactions between the existing natural resources and also study the changes owing to societal and human impacts that would help pave the way for emerging opportunities (Czinkota et al, 2011, p.44; Secor, 2007, p.538-539). In terms of seeking opportunities Baker, Gedajlovic and Lubatkin (2005) and Callaway (2008) further observe that social and institutional cultures related to a specific region also happens to cite potential business opportunities for the business entrepreneurs. Thus in specific regions where the need for insurance dominates the minds of the occupants, citing of the relevant opportunity tends to create an entrepreneurial motive for insurance companies to internationally expand to such regions. However the policy and institutional factors pertaining to both enterprises and societies must be as such that would welcome the entry of foreign entrepreneurs in such sectors (Baker, Gedajlovic and Lubatkin, 2005, p.497; Callaway, 2008, p.12-13). Kontinen and Ojala (2011) and Witt (2004) state that the process of identification of a potential business opportunity regarding entrepreneurial decisions streams along mainly three steps highlighted as follows. The entrepreneur to gain possession of an emerging opportunity is required to develop potential networks with other allied firms and bodies operating along the global scale. Secondly the entrepreneur is required to rightly identify and gain alert of the emerging opportunity of a potential market entry to the region in where such opportunity can be optimally exploited. Thirdly the entrepreneur is also required to understand and evaluate the level of changes that have occurred along the cultural and demand landscape of the people in such regions to thereby assist the entrepreneur in gaining a significant stand to produce and market the opportunities. In each of the three steps the entrepreneur requires the gaining of potential information which in the first step can be had from network development on personal and professional level along with visiting trade and commercial fairs. For the second step information can be gained by the entrepreneur through the help of information sources like printed magazines, newspapers or from internet sources. Finally in the third case the entrepreneur is required to gain cognitive understanding of the markets, the serving points and the requirements of the consumers in that region. Opportunities identified through such process is further required to be evaluated in terms of its feasibility in helping the entrepreneur to gain profits for a long-term (Kontinen and Ojala, 2011, p.491-495; Witt, 2004, p.393-394). Tolstoy (2010) and Shane (2012) observe on the above note that international entrepreneurial organisations through the mode of development of effective networks in the foreign markets succeeds in gaining potential information about changes along the demand function. The potential knowledge gained from the market is thereby shared by the business organisations amongst its different business units spread along global markets. This process helps the firm in gaining potential access to new business opportunities. Again the process of network development through internet or on the physical platform of the firm with other concerns in the related category helps in enhancement of relationships in the intra-organisational level. This enhanced relationship mode would further help the firm or concern to gain due competitive advantage in building up a strong knowledge platform that effectively contributes in the citing and evaluating of potential opportunities (Tolstoy, 2010, p.395-396; Shane, 2012, p.13). Hitt et al (2011) and Shragger (n.d.) reflects on the concept of strategic entrepreneurship that tends to amalgamate the concepts of entrepreneurship and strategic management. Strategic Entrepreneurship is perceived as an emerging concept that tends to add value to the activities of an international entrepreneur in the ambit of finding for new opportunities in the international arena. In the function of opportunity hunting the entrepreneur is firstly required to not only discover potential opportunities emerging in the marketplace through gaining of knowledge but also in evaluating the feasibility of such opportunities in rendering profitable outcomes in the future. Resources available to organizations in the competitive global world are highly scarce in nature. Thus it is required for an entrepreneur to achieve a potential trade-off between the level of resources invested to sustain competitive advantage and that needed to potentially discover, evaluate and thereby exploit the large scale opportunities emerging in the markets identified. This trade-off established based on the concept of strategic entrepreneurship contributes in generating value-addition for the firm relating to future points of time (Hitt et al, 2011, p.69; Shragger, n.d., p.381). Gaining Access In addition to observation of the interaction between resources and the impact of human activities on such, Czinkota et al (2011) states that international entrepreneurship to be successful would require proper access to such potential resources. The government bodies of different nations are closely working on the development of transportation and communication networks to assist the international firms gain potential access to resources and opportunities. Thus in addition to development of ports in regions like Sydney, Hong Kong and Singapore for development of international trade along such quarters the government of Australia, as an example worked on the enhancement of electronic commerce and introduction of new international trade policies to foster growth of the export regime. Thus ease of accessibility to potential economic and business resources pertaining to international regions enhances the opportunity dimension of international business (Czinkota et al, 2011, p.46). Cooke (2004) through the presentation of cases in the Pharmaceutical industry reflected that international entrepreneurs tend to gain opportunities for market expansion through the process of conducting mergers and acquisitions. The mergers and acquisition processes in place helps the international firms to gain hold of significant opportunities in terms of marketing, supply chain and distribution systems and also other financial resources to gain a strong foothold in the foreign country. However such mergers and acquisition activities to be effectively conducted requires the support rendered by government and institutional bodies working to develop policy regimes for the same (Cooke, 2004, p.638-639). Oviatt and McDougall (2005) and Williams and Martinez (2012) further observe in the above direction that the international entrepreneur to optimally gain hold and thereby potentially exploit business opportunities emerging in an international region is required to effectively counter different constraints in the process of developing business and market networks. The international entrepreneur is required to develop liaison opportunities with the government and policy-making authorities of the different regions to reduce the impact of the changes in the legislative and institutional structure of such regions. New policy and legal regulations brought about in the tax and trade parameters of such regions tends to vehemently affect the internationalisation ventures. Further the international entrepreneur is also required to gain knowledge of local cultures and languages to thereby effectively relate the business goals to social ends. These parameters effectively dealt with would help the business entrepreneur to optimally exploit the opportunities available in such regions and thereby gain on in business revenues (Oviatt and McDougall, 2005, p.35; Williams and Martinez, 2012, p.65-66). Chandra, Styles and Wilkinson (2012) and Epstein (2009) also observe that in the era of globalisation firms tending to succeed are not evaluated in an isolated or singular framework. Rather evaluation process of the firms is conducted in terms of the company’s potencies to develop international networks along the global scale and also through the process of gaining information about the markets and the distribution processes. These information and networking resources would help the business concerns in gaining hold of potential strategies like mergers and acquisitions to enhance and sustain the level of market share (Chandra, Styles and Wilkinson, 2012, p.96; Epstein, 2009, p.328-329). Vasilchenko and Morrish (2011) further elucidate on a firm’s international expansion endeavours in gaining hold of the right opportunity reflecting on the strategic level of partnerships and coordination that the firm tends to develop with other firms and corporations in the same business category in foreign markets. Various types of partnership agreements can be framed on a physical level along with mergers and acquisitions to effectively gain hold of the marketing and distribution bases. Marketing and distribution opportunities can also be gained by the international corporation by utilising the social networking platforms to potentially develop stronger ties with the foreign corporation and their supply chain agents. This accessibility or communication mode thus paves way for the business corporations to gain potential success in rightly availing the benefits of the upcoming opportunities in foreign economies (Vasilchenko and Morrish, 2011, p.102-103). Hagen and Zucchella (2011) embark that in addition to internet resources held by firms in terms of electronic commerce and other social networking platforms they are required to also incorporate financial and other capital resources to gain enhanced market space in the international regions. Two cases of companies like Blacksocks and YOOX pertaining to United States are rendered where it is found that failure to possess significant financial resources led to their failure to gain potential entry into foreign markets. The companies though had gained potential traffic in terms of target visitor groups to their websites yet failure to render significant investments led the companies fail in their advertising and promotional ventures for promoting and marketing their products in international markets. The two companies Blacksocks and YOOX focused more on the use of internet to conduct marketing and customer servicing activities respectively. However internet as a internationalisation medium failed to help the companies gain potential access to existing opportunities present in the international market to penetrate and expand effectively. Thus based on the Resource Based View it is held that failure of the firms to possess potential resources in terms of financial and marketing competencies happen to affect the accessibility of the companies to potential market opportunities (Blacksocks and YOOX, 2011, p.497-498). Giudice and Straub (2011) and Fletcher (2004) further states that the process of information technology assists the business organisations operating in the globalised climate to reduce the costs of transactions in terms of coordinating the different functions to gain a larger market share and consumer awareness in international markets. Similarly the paradigm of information technology also helps the business corporations to organise their networks with other firms operating in the same category in the international markets and also along their own departments located in specific local and international regions. This pattern of network development of the business organisations helps them gain access information pertaining to emerging opportunities based on which the company can render potential investments (Giudice and Straub, 2011, p.3; Fletcher, 2004, p.290). Kloosterman (2010) further reflects that international entrepreneurs must have proper and effective knowledge of international markets to gain proper access to potential opportunities. The entrepreneur must gain potential insights about the understanding of existing market demand for a specific category of products and services that in turn tend to create a host of opportunities for the entrepreneur to invest upon. However in spite of being able to trace potential opportunities emerging in the market sphere in the regions identified the entrepreneur earns a failure relating to gaining access to such. The accessibility of the entrepreneur to such potential resources is highly constrained owing to lack of needed resources pertaining to financial, human resource and also cultural and social knowledge of the new regions. This lack of resources alienates the entrepreneur from the opportunities identified thereby making the person dependent on small scale sectors in the economies identified. Thus the entrepreneur is required herein to gain the access to mass production and distribution systems for ideally gaining the required potential to grab emerging opportunities. Further Kloosterman (2010) also states that the new markets identified by the international entrepreneurs in terms of opportunity hunting are as such that tends to expand and develop in the future or such that contracts at a future time period. In the latter markets the aspect of opportunity continues to emerge to the point where the rate of gaining of output in terms of investments rendered in the settling of production and distribution facilities surpass the level or rate of such market contraction. Similarly the entrepreneur is also required to understand the nature of the new market as capital or labour intensive in nature and thereby develop potential strategies to gain hold of the needed resource base and gain on emerging opportunities (Kloosterman, 2010, p.28-29). Conclusion The above analysis thereby reflects on the concept of international entrepreneurship emerged relating to the endeavour of the regional or local entrepreneur to discover new and emerging opportunities in the globalized world, evaluate the feasibility of the same in rendering long term returns and thereby strategising to exploit such in an optimal fashion. However the mode of exploitation of such identified opportunities happens to falter for the international entrepreneurs owing to potential resource constraints. This limited or less availability of proper accessibility to potential opportunities in the sphere of international trade renders in enhancing the competitive climate. Thus the international entrepreneurs are not only required to have clear perception of developed opportunities promising returns in the long run but also in allocating effective resources to optimally gain the highest benefit possible from the opportunities available. 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