Thus, firms can use their international market orientation to overcome cultural distance problems, especially information asymmetry, opportunistic behavior, and uncertainty.Market-oriented behaviors facilitate acquisition and dissemination of knowledge and responsiveness to this intelligence about foreign markets what is especially important when the firm has no international experience [9, 26, 28–30].This site stores nothing other than an automatically generated session ID in the cookie; no other information is captured.In general, only the information that you provide, or the choices you make while visiting a web site, can be stored in a cookie.This model perceives the internationalization of the firms as being a sequential process that leads from a domestic market to international markets in accordance with a “learning process,” whereby knowledge of the new markets is acquired and resources are increasingly committed to those markets [1, 2, 17, 18].However, the international behaviour demonstrated by INVs cannot be understood under the deterministic assumptions made by the gradualist models.
Moreover, following Jones and Young , who highlight the need to consider entry mode literature when studying the entry modes used by new ventures, our theoretical model is based on arguments coming from international entrepreneurship literature, marketing literature, and entry mode literature.
The emergence of this new type of firm has therefore opened up gaps in the literature that demand new theoretical approaches with which to analyze them [19–22], providing an understanding of this new business reality and helping the managers of such firms to overcome the liabilities of newness and foreignness they face. , what makes it possible to distinguish between different types of international behaviors in new firms are the commitment of resources in the foreign markets where the new firm operates and the geographical diversification of their foreign markets.
Previous research has shown that the possession of certain competences can facilitate the development of a company’s internationalization strategy, especially in the earlier stages of the process [23, 24]. However, a comprehensive explanation of the strategic antecedents of INVs’ international behavior is still not adequately addressed in extant models of internationalization .
Due to the limitation of resources, a firm has to make a strategic decision on which markets to enter and allocate resources accordingly .
This decision is especially important in the case of companies that decide to be international from the inception, as INVs.