Empirical Research on Early Internationalization of Firms in Sufficiently-Sized Domestic Market Country

Saki Otomo (), Shuichi Ishida and Mariko Yang-Yoshihara
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Saki Otomo: Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan
Shuichi Ishida: Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan
Mariko Yang-Yoshihara: Department of Management Science and Technology, School of Engineering, Tohoku University, 6-6-11-803 Aza-Aoba Aramaki, Aoba-ku, Sendai 980-8579, Miyagi, Japan

Administrative Sciences, 2023, vol. 13, issue 4, 1-13

Abstract: Early internationalization and success in foreign markets play an important role in both a firm’s growth and its impact on the global economy. We conducted a study on Japanese high-tech startups to investigate the factors that derive early internationalization in firms founded in countries with a large domestic market, despite the absence of strong incentives to operate overseas. Quantitative data were collected from 71 startups and analyzed with PLS-SEM (Partial least squares path modeling). Our result showed that the factors we extracted from the previous studies on the internationalization process in small-size markets would also apply in countries with large domestic markets. In addition, considerations and the types of technology, which we extracted from qualitative research, verified the effect. According to our mediator analysis, an entrepreneur’s international orientation explains certain conditions related to a domestic market that affect a firms’ decision to pursue early internationalization. Our study makes contributions at multiple levels, benefiting entrepreneurs who are considering overseas expansion as well as policymakers who aim to promote early internationalization efforts.

Keywords: internationalization; entrepreneurship; born global; innovation; startups; innovative organization (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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