International entrepreneurship in Europe

INTERNATIONAL ENTREPRENEURSHIP IN EUROPE

1.Introduction

The rapid globalization of world markets has encouraged companies of all sizes to expand internationally. With the economy booming, the opportunities have never been better for entrepreneurs, and this wide-ranging resource offers something for business pioneers of all stripes. As defined by McDougall and Oviatt (2000), international entrepreneurship (IE) is: “a combination of innovative, proactive and risk-seeking behaviour that crosses national borders and is intended to create value in organizations”.

By research a lot of articles, which point out that Europe has only recently become interested in the growth of entrepreneurship. Risk taking in general is discouraged by most European cultures with business failure being considered a social disgrace. But in recent years, several changes in the social and political climate have conspired to change these traditional, security-conscious culture successful entrepreneurs, some of whom have become cultural heroes and break the stigma.

This paper seeks to present an overview of the recent literature relating to “international entrepreneurship” which may be identified in the European Union. So the purpose of this research paper is to provide background information of international entrepreneurship in European Union, and how that information applies in the future research.

2. Context

This paper reviews 15 international entrepreneurship materials gleaned from journal and books. And it suggests that there is much room for further research.

2.1 PAVLOS.D and SPYROS, L. (2003) The Relationship Between Entrepreneurship and International Performance: the Importance of Domestic Environment. World Development, 29(4), pp.641—656.

The author investigates the effect of environmental conditions on the association between entrepreneurship and international performance. It presents evidence related to mainly contingency and configurationally effects of international environments. The author’s finding stresses the importance of the environmental determinism view suggesting that the alignment of entrepreneurship with domestic environmental conditions enhances international performance. The article also suggests that domestic country risk reduction policies may not be implemented since these can lower performance abroad for entrepreneurial activities.

The author illustrates a lot of examples, some of what are European countries, on the environmental factors, which are helpful for the future research on the environmental benefits of European countries, and it also gives some critical analysis about nowadays Europe international marketing.

2.2 Wright, R. W., & Ricks, D. A. (1994). Trends in International Business Research: Twenty-five years later. International Business Studies, 25(4): pp.687-701.

The authors highlighted international entrepreneurship as a newly emerging research direction, and it became clear the arena included comparisons of entrepreneurial behavior in multiple countries and cultures, as well as organization behavior that extends across national borders and is entrepreneurial. They also asserted that international entrepreneurship is a new and somewhat surprising thrust of international business research activity.

In the future research, the entrepreneurial behavior and culture are the important aspect. So depend on the author’s view, I can do some further research on this aspect. But this article is lack of evidence to support the author’s standpoint.

2.3 GIAMARTINO, G. A., MCDOUGALL, P. P., & BIRD, B. J. (1993). International Entrepreneurship: Theory and Practice. London: Thomson Learning.

GIAMARTION, MCDOUGALL, and BIRD assessed the current state of the field of entrepreneurship by surveying one hundred forty-seven Entrepreneurship Division members. They identify opportunities and hindrances to the internationalization of entrepreneurship, and examine the appropriate role of the Entrepreneurship Division as well as the Academy of Management in internationalizing. The authors concluded that the next step should be a thorough review of journal outlets for international entrepreneurship research.

This article illustrate a lot of cases which is come from ...

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2.3 GIAMARTINO, G. A., MCDOUGALL, P. P., & BIRD, B. J. (1993). International Entrepreneurship: Theory and Practice. London: Thomson Learning.

This article illustrate a lot of cases which is come from our real life, strongly support the author’s view, opportunities can give the entrepreneurs a big challenge to survive in the competitive environment.

2.4 JENNIFER, W. AND CAROLINA, G (2003). The Relationship Among National Institutional Structures, Economic Factors, And Domestic Entrepreneurial Activity: A Multi-country Study. Business Research. 35(4): pp.305-321.

The author draws on the construct of a country institutional profile to identify normative, cognitive, and regulatory institutional structures that may influence a country's entrepreneurial activity. Results show that these three dimensions of the institutional profile, as well as economic factors, play distinct roles in promoting entrepreneurial activity in a country. Cognitive institutions explained the prevalence of small firms in a country, as well as the number of new companies listed on the country's stock exchange. Regulatory institutions associated with new listings on the country's stock exchange. Per capita GDP explained basic forms of entrepreneurship but, contrary to expectations, the country's unemployment rate associated only with the most advanced form of entrepreneurship.

This article more concentrates on the weakness of international entrepreneurship such as unemployment, economic policy. But those weakness seems useless in my future research and a lot of professors (BENITO and WEICH, 1997) argue that “ entrepreneurs become globalization will give the market some new dynamics.” And there is also lack of other authors view to support this point.

2.5 NICOLE, E. AND MARIAN, V. (2003) Methodological issues In International Entrepreneurship. Business Venturing, 29(3), pp.351-378.

This research paper collect fifty-five articles which were systematically analyzed focusing on time frame and research context, sample characteristics, data analysis procedures, and equivalence issues. Results indicate both strengths and weaknesses in international entrepreneurship methods. The authors present implications for developing a unifying methodological direction in the field and the evolution of a truly multidisciplinary approach. Author discusses the need for better international entrepreneurship sampling frames and call for more effort in establishing and reporting equivalence in cross-national studies.

The standpoint of author is supported by a lot of other authors, and some of the point will helpful for the future research on characteristics of the international entrepreneurship.

2.6 SHAKER, Z. JAMES, H AND HUGH, O. (August, 2001) Fostering Entrepreneurship During international Expansion: Managing Key Challenges. European Management, 19(4), pp.359-369.

This article identifies several challenges companies encounter as they attempt to promote entrepreneurship and it discusses ways executives can creatively address them. The article shows how managing these challenges can encourage organizational learning of new skills, thereby giving companies new competencies that allow them to profit from expanding their international operations. As internationalization continues to accelerate, companies need to invest heavily in learning and developing new core competencies in their foreign markets.

In this article, entrepreneurship refers to a company's formal and informal activities aimed at increasing innovation and venturing. The author gives a new field to explain entrepreneurship, and some other authors (ZAHRA and GARVIS, 2000) also agrees this explanation, so this gives a new aspect in the future research.

2.7 ZOLTAN, J AND BERNARD, Y. (2001) Entrepreneurship, Globalization, And Public Policy. International Management, 7(3), pp.235-251.

This paper examines the impact of governmental policies in influencing the path of internationalization of small- and medium-sized enterprises (SMEs). The author focuses on the role of institutions mandated to assist internationalization. Creative destruction and globalization are intimately connected. They point out globalization is a process of creative destruction on a global scale. The modern business world is characterized by globalization, which are the international connectivity of markets and the interdependence of national economies. This connectivity means a firm's competitors, suppliers, and customers are to be found throughout the world.

Some other authors such as MCDOUGALL, SHANE, and OVIATT (1998) were also comment the same statement based on a multiple case study of global start-ups. So there are a lot of evidence and cases to support the author’s standpoint.

2.8 MARIAN, V. (2001) First Steps In Internationalization Concepts And Evidence From A Sample Of Small High-Technology Firms. International Management, 7(3), pp.191-210.

The author argue that the first major steps in a firm's internationalization process are generally held to be trade related, and while import activity is considered to play a role. She also state export activity that is most often recognized as being the first real step in the internationalization process. The globalization of business, and in particular, the globalization of technology markets, has meant that small firms in industry sectors subject to globalization forces may become involved in any number of different types of cross-border business activities.

A follow up research of this aspect will be continued, because in this article, the author gives a lot of evidence to support her standpoint, and some other authors (KANTER, 1998) also state the same point.

2.9 HISRICH, P (1998) Entrepreneurship. 4th edition, USA: McGraw-Hill.

In this book, the author point out several factors such as stage of economic development, balance of payments, type of system, political-legal environment, make decisions in international entrepreneurship. The author also comments the barriers and opportunities of market entry when an entrepreneur decides to be involved in the international business.

This book more concern about U.S. But in Europe countries, the situation is most different. Once the Europe countries joint together as a union, the tariff of import and export is no more the barriers. The author also gives a lot of evidence that are strongly support their standpoint, but when the future research developed, those view goes no use to apply in EU environment.

2.10 JOHAN, A.(September, 2002) Environmental issue entrepreneurship: a Schumpeterian perspective. Futures, 34(7), pp.649-441.

In this paper, the recent growth in national and international environmental legislation and the subsequent emergence of rather vague ecological concepts like sustainable development and the precautionary principle, are analyzed from an Schumpeterian perspective in which police issue entrepreneurship plays a central role. Schumpeter wrote that the emergence of unfavorable circumstances in capitalist societies would activate strong opposition from social critics and intellectuals. Environmental policy aims at correcting externalities or market failures and therefore impacts market forces. The goal of environmental protection can change the course of capitalism.

Author talk about relationship between national and international environment. He illustrates Schumpeter’s view and makes a critical analyze. The point based on the Schumpeter’s view that has been demonstrated. So this view can used in the future research to compare the difference effect of national and international environment.

2.11 ELIZABETH, C. (2001). Entrepreneurship: Globalization, Innovation And Development. London: Thomson Learning.

As the author comment “they are global because their core activities of production, marketing and circulation are organized globally.” In this book the focus has been on environmental factors that have fostered such developments. The author considered the key to the environment, however, are economic structures, in particular other firms. Nation-states are also important as repositories of business practices. Whilst the focus in this book has been on the more tangible aspects of the environment, it has been made clear that local, national and corporate culture are also important determinants of business behavior. At the end of this book, it was given to what management needs to do to address both competitive and ‘global’ imperatives.

The point of this book is very much relative to the future research proposal; those environment factors and global economy can give a lot of support point.

2.12 HASRICH, MCDOUGALL AND OVIATT (1997) Cases In International Entrepreneurship. USA: Times Mirror.

This book assists in understanding and addressing international opportunities and how international entrepreneurs respond to them. The author states that international entrepreneurship focuses on how new and small ventures conduct business address national borders. This casebook brings alive both the opportunities and the problems with vitality, relevance, and richness of detail. The case demonstrate that entrepreneurs can find the resources to take virtually any type of business international, and several cases indicate the struggles of software ventures in various stages of international development, yet there are also several cases on service businesses.

This casebook illustrate different kinds of cases from different regions include China, UK, Poland, Ireland, US, Australia. It make possible to compare the different points with different countries.

3.Conclusion

This review paper examined the concept of international entrepreneurship in Europe that has been emerging across the USA, North Europe and Asian in recent years, providing an overview of the existing literature in this area. Literature on the internationalization of the firm has been divided into studies that focus on the decisions involved, often relating to entry mode choice and strategy, and those that focus on the process. The first section told readers what would talk about in this research paper; the second section is a literature review depend on the journal and books.

Many reading articles state that today in Europe, more individuals are emerging in both academic circles and large companies who are looking for a challenge and are finding it in entrepreneurship. New government policies are making it easier to raise money for starting up businesses.

All in all, by given the emerging global environment, entrepreneurs are no longer limited to domestic markets, and even locally oriented entrepreneurs must be attentive to competition from international players.

References

PAVLOS.D and SPYROS, L. (2003) The Relationship Between Entrepreneurship and International Performance: the Importance of Domestic Environment. World Development, 29(4), pp.641—656.

Wright, R. W., & Ricks, D. A. (1994). Trends in International Business Research: Twenty-five years later. International Business Studies, 25(4): pp.687-701.

GIAMARTINO, G. A., MCDOUGALL, P. P., & BIRD, B. J. (1993). International Entrepreneurship: Theory and Practice. London: Thomson Learning.

JENNIFER, W. AND CAROLINA, G (2003). The Relationship Among National Institutional Structures, Economic Factors, And Domestic Entrepreneurial Activity: A Multi-country Study. Business Research. 35(4): pp.305-321.

NICOLE, E. AND MARIAN, V. (2003) Methodological issues In International Entrepreneurship. Business Venturing, 29(3), pp.351-378.

SHAKER, Z. JAMES, H AND HUGH, O. (August, 2001) Fostering Entrepreneurship During international Expansion: Managing Key Challenges. European Management, 19(4), pp.359-369

ZOLTAN, J AND BERNARD, Y. (2001) Entrepreneurship, Globalization, And Public Policy. International Management, 7(3), pp.235-251.

MARIAN, V. (2001) First Steps In Internationalization Concepts And Evidence From A Sample Of Small High-Technology Firms. International Management, 7(3), pp.191-210.

HISRICH, P (1998) Entrepreneurship. 4th edition, USA: McGraw-Hill.

JOHAN, A.(September, 2002) Environmental issue entrepreneurship: Schumpeterian perspective. Futures, 34(7), pp.649-441.

ELIZABETH, C. (2001). Entrepreneurship: Globalization, Innovation And Development. London: Thomson Learning.

DONALD, J. (1998) Fostering Entrepreneurship. France: OECD.

CLAUDIA, B. AND ELAINE, R. (2001) The Entrepreneurship Dynamic: Origins of Entrepreneurship and The Evolution of Industries. California: Stanford University Press.