The impact of resources on international entrepreneurship: an exploratory study

We study how resources affect the entrepreneurial process in an international business context. In doing so, we offer current and prospective entrepreneurs with science or technology backgrounds aspiring to international careers insights into the global marketplace so they can effectively internationalize their venture(s). Due to the transformation of many start-ups into multinational enterprises, it is important to understand how such internationalization transpires. Accordingly, our study focuses on the impact of resources on entrepreneurs’ ability to identify, appraise, and take advantage of opportunities that lead to internationalization. This is accomplished by drawing on and synthesizing the resource-based view with opportunitybased theory. Furthermore, the under-researched international entrepreneurship literature provides a clear knowledge gap. Hence the study is exploratory. Through interviewing eight international entrepreneurs operating in diverse technological and scientific industries, we gain comprehensive insights and experiences vis-à-vis resource impact on internationalization. This includes global, ethical, political, organizational, economic, and legal dimensions. Our empirical findings show that resources influence each stage of the international entrepreneurial action process in different ways. An important conclusion is that social capital in the form of networks and partnerships are critical to entrepreneurs pursuing internationalization. In line with international business and entrepreneurship literature, such third party resources aid in the discovery of opportunities and provision of information. Furthermore, they alleviate resource constraints and provide entrepreneurs with better understanding of foreign markets. Given these findings, we suggest that entrepreneurs who are pursuing internationalization and trying to maximize their potential should actively increase their networking capabilities and enter apposite global partnerships.