Internationalisation for Survival: The Case of New Ventures

Francisco Puig (), Miguel González-Loureiro and Pervez N. Ghauri
Additional contact information
Francisco Puig: University of Valencia
Pervez N. Ghauri: King’s College

Management International Review, 2014, vol. 54, issue 5, No 3, 653-673

Abstract: Abstract The aim is to deepen our understanding about the internationalisation–survival relationship in the case of new ventures in traditional manufacturing sectors. Hypotheses were tested through Cox’s proportional hazard regressions on a sample of 3,350 firms aged 10 years or less, from the textile-clothing and footwear industry in Spain. A vast majority of new ventures that were both established and closed down over that time are purely domestic firms. That means, a firm increases its likelihood of survival when it becomes international. The highest failure risk relates to those new ventures which are territorially agglomerated and are domestically oriented. Internationalisation is an unconditional strategy for surviving in the case of new manufacturing ventures. In addition, location and efficiency in the activity both matter when operating in international markets. Statistical tests show that an interactive effect of agglomeration and internationalisation exists, while no support for the interaction between age and internationalisation is found. Future research should investigate the trade-off between growth and survival forces to determine the optimum moment to go international and to characterise the strategic choices followed by those new ventures that survive longest.

Keywords: Survival; Internationalisation; Traditional manufacturing sector; New ventures (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (25)

Downloads: (external link)
http://link.springer.com/10.1007/s11575-014-0209-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:manint:v:54:y:2014:i:5:d:10.1007_s11575-014-0209-4

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/11575

DOI: 10.1007/s11575-014-0209-4

Access Statistics for this article

Management International Review is currently edited by Michael-Jörg Oesterle and Joachim Wolf

More articles in Management International Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().