Entrepreneurial orientation as a catalyst for international expansion: an analysis of university spin-out companies

Abstract

The globalisation of markets in recent decades, advances in information, production and communication technologies, as well as the declining costs of transportation and international trade, have contributed to the widespread emergence of small, resource-constrained firms that are found to internationalise shortly after foundation: Born Global firms. Research attention into the nature of Born Global firms has grown substantially in the past three decades. Nevertheless, knowledge on their nature and their ability to internationalise early is still limited. This thesis contributes to research on Born Globals by employing a process-based view of their internationalisation and, in particular, by examining their pre-foundation behavioural processes through the theoretical lens of Entrepreneurial Orientation (EO), understood as a multi-dimensional theory composed of proactiveness, innovativeness and risk-taking. The empirical examination is carried out in the context of University Spin-Out companies (USOs). To achieve its aim, the thesis performs qualitative semi-structured interviews with respondents from 22 University Spin-Out companies stemming from two Italian STEM (Science, Technology, Engineering and Mathematics) universities; 12 USOs were Born Globals and 10 USOs were non-Born Globals. In addition to the USOs, 11 semi-structured interviews were performed with key stakeholders involved in the universities’ entrepreneurial ecosystems, such as Technology Transfer Offices, incubators, market agencies and financiers. Thematic analysis of the data led to the identification of several themes differentiating Born Globals from non-Born Globals. For proactiveness, the firms differed along the patterns of opportunity identification, opportunity pursuit, competitive positioning, and the phasing of proactiveness. For innovativeness, differentiating patterns were identified in the antecedents of innovation, in product/service innovativeness, and in the speed of innovativeness. Finally, for risk-taking, distinctive behaviours emerged in the context of internationalisation risk and business risk, institutional uncertainty, and process uncertainty. By unlocking insights into the pre-foundation Entrepreneurial Orientation behaviours distinguishing Born Global USOs from non-Born Global USOs, the thesis adds to several research streams. First, it contributes to Born Global research, by investigating the role played by the pre-foundation period in facilitating early internationalisation, by adding an entrepreneurship-based theoretical perspective, and by examining their distinctiveness vis-a vis non-Born Globals. Second, it adds to Entrepreneurial Orientation research by employing a multi-dimensional, process-based and qualitative approach to examining the theory in the context of early internationalisation. Finally, it contributes to Academic Entrepreneurship research by investigating the early internationalisation of USOs while taking into consideration their unique, academic characteristics and their implications for entrepreneurial processes. The thesis also bears important practical implications, which are discussed along with the limitations of the study and avenues for future research.