Using Global Entrepreneurship Monitor (GEM) survey of over 25,000 nascent and new entrepreneurs from 2005-2008 and 45 countries, we predict their internationalization decisions based on three domestic institutions. Results indicate that stronger regulatory environment, smaller home market, and weaker innovation environment favor internationalization. Interaction results indicate that strong regulatory environment helps overcome the negative effect of a large home market towards internationalization and that it also facilitates internationalization by aiding to acquire resources necessary for innovation that may be lacking domestically. Finally, a larger home market size reduces the need to internationalize to compensate for lacking innovation resources.
Pathak, Saurav; Muralidharan, Etayankara; and Laplume, Andre
"HOME COUNTRY FACTORS AND THE DECISION TO INTERNATIONALIZE TECHNOLOGY-BASED NEW VENTURES: A MULTI-LEVEL STUDY OF EARLY-STAGE ENTREPRENEURS,"
Frontiers of Entrepreneurship Research: Vol. 34
, Article 1.
Available at: http://digitalknowledge.babson.edu/fer/vol34/iss19/1