How New Ventures Exploit Trade-Offs Among International Risk Factors: Lessons For The Accelerated Internationization Of The 21St Century

Abstract

The Organisation for Economic Co-operation and Development predicts that the internationalization of businesses will accelerate in the 21st century. Our study examined how the risks of accelerated internationalization may be managed in 212 foreign market entries by 87 new ventures based in the United States. Findings suggested that ventures managed strategic international risks by exploiting simultaneous trade-offs among foreign revenue exposure, country risk, and entry mode commitment in each country.