From international new ventures to MNCs: Crossing the chasm effect on internationalization paths

Qinghai Li and Ping Deng

Journal of Business Research, 2017, vol. 70, issue C, 92-100

Abstract: This paper explores the market expansion path of knowledge-based international new ventures (KINVs) toward multinational corporations (MNCs) over time and identifies relevant enabling factors. Integrating crossing the chasm and international new venture (INV) theories, we analyzed international expansion paths of four KINVs headquartered in three countries (the U.S., Japan, and Israel). Based on trademark data, triangulated by both sales data and primary interviews of corporate executives, we proposed an integrative framework to examine the effect of crossing the chasm on market expansion paths towards MNCs. Our findings suggest that KINVs that cross the chasm in lead market are more likely to become MNCs. Our studies also identify several important factors that enable KINVs toward MNCs; these enabling factors include firm-specific assets and capabilities (e.g., proven products, R&D expertise, intellectual property assets, brands and reputation), partnership with leading customers, and collaborators built during the dynamic process of crossing the chasm.

Keywords: Crossing the chasm; Dynamic effects; International expansion; International new venture (INV); Knowledge-based INVs; Longitudinal case studies (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:70:y:2017:i:c:p:92-100

DOI: 10.1016/j.jbusres.2016.07.002

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