Survival of New Technology Based Firms in the UK and Germany

Abstract

Thanks to the efforts of researchers including McDougall and Oviatt (1994), Autio, Sapienza and Almeida (2000), Zahra, Ireland and Hitt (2000), Yli-Renko, Autio and Tontti (2002), B¿rgel, Fier, Licht and Murray (2004) and Sapienza, Autio, George and Zahra (2006), a set of more challenging questions are now being asked given that the phenomenon of rapidly internationalising new ventures is now fully recognised. When it is appreciated that work specifically focused on rapidly internationalising young firms was rarely published prior to the mid 1990s, we have in effect had little more than a single decade of research interest. Thus, it is hardly surprising that the overwhelming majority of studies are cross-sectional in perspective. Recognising this limitation, Sapienza et al. (2006) have called for both longitudinal studies as well as more 'matched sample' methodologies that will allow us to explore the effect of internationalisation on (among other things) firm survival. They also note the absence of information on the effect of internationalisation on growth and profitability. Zahra et al. (2000) similarly argue the need to match the process of internationalisation to recognised performance outcomes.

Keywords: Entrepreneurship

JEL Classification: M13