Exploring the individual and joint effects of founders' and managers' experiential knowledge on international opportunity identification

Anisur Faroque, Farhad Uddin Ahmed, Mahabubur Rahman, Mohammad Osman Gani and Sina Mortazavi
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Anisur Faroque: LUT - Lappeenranta–Lahti University of Technology [Finlande]
Farhad Uddin Ahmed: LUT - Lappeenranta–Lahti University of Technology [Finlande]
Mahabubur Rahman: Brunel University Business School
Mohammad Osman Gani: ESC [Rennes] - ESC Rennes School of Business
Sina Mortazavi: Graduate School of Humanities and Social sciences - Hiroshima University

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Abstract: This study aims to examine the individual and interactive effects of the founder's prior experience and managers' foreign market knowledge on international opportunity identification by early internationalizing firms (EIFs). We draw on a sample of 332 small and medium-sized EIFs from a South Asian country, viz. from the Bangladeshi apparel industry. This study adopts a survey-based quantitative research approach. A hierarchical regression modeling technique is used to test the contingency hypotheses. The results demonstrate that founding entrepreneurs' prior experience and managers' experiential knowledge are strong predictors of international opportunity identification. While we hypothesized for the joint negative effects of founders' prior experience and managers' market knowledge on opportunity identification, the results were non-significant, thus partially supporting the assumptions of agency theory. Our study provides valuable empirical insights into and supports the role of founders' prior experience and managers' foreign market knowledge in investigating international opportunity identification.

Date: 2023-09
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Published in Asian Business and Management, 2023, 22 (4), pp.1274-1300. ⟨10.1057/s41291-022-00204-3⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04192814

DOI: 10.1057/s41291-022-00204-3

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