An Exploratory Study of InternationalCommitment by Nascent and Existing Firms

This exploratory study addresses two research questions: What factors are related to firms’ decision to internationalize, and after they internationalize, What factors relate to firms’ choice of high-risk versus low-risk foreign entry modes? We contribute to the literature by examining these questions with two separate sets of entrepreneurial firms: nascent (in the process of being set up but not yet operational) and existing (operational)firms. Accordingly, we draw on different streams of research, including the theory of planned behaviour and the new venture theory of internationalization, to study firm involvement in foreign markets. Among nascent firms, growth orientation and innovation level relate positively to the plan to internationalize; however, we find no discriminating factors for whether nascent firms plan to choose high- versus low-risk entry modes. For existing firms, growth orientation and team size are positively associated with internationalization. Finally, existing firms that have chosen high-risk (versus low-risk) entry modes are more growth oriented and differ in their individual-level factors.