The Interplay Between Internal Experience and External Support During Startups’ Early Internationalization

Abstract

Background and Problem: Although startups often want to expand abroad, they may underestimate the costs and efforts needed to internationalize early with just their internal experience. Hence, startups tend to apply for support processes from external facilitators. Thus, there is a need to understand the roles of previous internal experience and usage of external support during startups’ early internationalization more thoroughly. Purpose: This study seeks to provide additional knowledge on how startups utilize external business facilitators in conjunction with their early internationalization to foreign markets. Furthermore, valuable internationalization support processes offered to startups by the external business facilitators will be identified to examine how internal experience within the startup affects their need and use of the external support processes. Methodology: Multiple case study of six informants from different startups influenced by an abductive research approach used to analyze the theories and empirical evidence allowing for development and interpretation of new concepts. Results and Conclusion: There appears to be an interplay between previous internal experience and usage of external support during startups’ early internationalization. Extensive internal experience appears to decrease the usage of external support and vice versa. Furthermore, startups utilize external support from multiple facilitators simultaneously, however, some external processes appear to be of greater importance. Whereas, less experienced startups are pushed by external facilitators to internationalize, the more business experienced entrepreneurs often created their own strategies.