Entrepreneurial decision-making in internationalization: propositions from mid-size firms

Research into international entrepreneurship tends to focus on new ventures rather than larger established firms. Few studies have considered why an entrepreneurial manager in an established firm is motivated to undertake international market entry. Propositions relating to factors motivating the international market entry decision of entrepreneurial managers in mid-sized firms are created and evaluated through in-depth interviews with entrepreneurial managers. We find contrary to extant theory that cultural context, industry environment and resource constraints do not motivate or hinder an entrepreneurial manager's decision to internationalize. Rather, the entrepreneurial manager's connection with the customer, tacit knowledge and vision and product-service complexity are the strongest influences on the decision to internationalize, which is moderated by the strength of the business case and resource-based risk tolerance. This implies a much greater strategic approach by entrepreneurial managers than typically portrayed in current literature. Our research provides researchers with grounded propositions for further empirical testing.