Prior shared international experience and the survival of international new ventures

Criaco, GiuseppeJönköping University,IHH, Företagsekonomi,IHH, Centre for Family Entrepreneurship and Ownership (CeFEO) (author)

An earlier version of this paper has been presented at the Academy of International Business (AIB) Annual Meeting in New Orleans (United States) in 2016 under the title ‘Founders' prior shared experience and the survival of born global firms’.
This paper shows how organizational members’ prior shared experience in international firms affects the survival of the international new ventures (INVs) to which they belong. I propose that as the length of prior shared international experience (PSIE) increases, these ventures are more likely to draw greater survival-enhancing benefits from the pre-existing routines and capabilities that their members previously developed while working together in the same international firm. However, for high PSIE length, INVs may find it difficult and costly to revise existing routines and capabilities and to develop new ones to achieve survival. Using a unique sample of Swedish INVs, I find that PSIE has an inverted U-shaped relationship with survival. Further, I theorize and show that contextual familiarity between the contexts in which PSIE was acquired and those in which it is applied through the INV is an important contingency of the PSIE-survival relationship. This study has valuable implications for research on international entrepreneurship and shared experience.

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SOCIAL SCIENCES: SOCIAL SCIENCES; and Economics and Bu ...; and Business Adminis ...

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