Internationalizing the entrepreneurial high technology, knowledge-intensive firm

Abstract

This thesis examines the internationalization process and growth patterns of entrepreneurial high technology, knowledge-intensive firms. This is accomplished with two-stages of data collection, involving multi-site case methodology and survey research, focusing on software developers based in New Zealand. These firms are characterized as both high technology and knowledge-intensive (ie non-manufacturing), and serve international markets with leading edge technology. The purpose of this exploratory and descriptive research is to aid theory development in the area of internationalization. Empirical evidence is used, together with the extant literature base, to develop four conceptual frameworks, specific to smaller, entrepreneurial high technology knowledge-intensive firms. These frameworks pertain to the internationalization process, network evolution and linkage development as part of internationalization, and the impact of linkage relationships on marketing activities. All four frameworks provide testable bases for future research. The frameworks offer new, empirically-based insight to internationalization, and show: 1) the internationalization process of the entrepreneurial high technology, knowledge-intensive firm differs from that of larger, manufacturing firms; 2) there are clearly identifiable patterns of internationalization, with network evolution being a major part of the internationalization process; 3) linkage and network development is impacted by existing linkage relationships (both formal and informal), the firm's stage of internationalization, and other firm characteristics; 4) international market development is impacted by the use of linkages and network development; 5) the internationalization patterns of 'newer' and 'later' entrants are different in terms of the speed of internationalization, and development of network relationships with major partners; and 6) linkage partners are used to outsource most market-related marketing activities, with entrepreneurial high technology, knowledge-intensive firms, able to achieve international growth and success without a clearly defined and developed, in-house marketing function. Future research should examine the conceptual frameworks more fully: 1) within the New Zealand software industry; 2) within the international software industry; and 3) across industry sectors. Specific issues for research in the areas of network development, linkage relationships, and marketing's role in internationalization are also identified.