By Julia Christofor, Tobias Kollmann

With the ongoing dispersion of the worldwide electronic community and function advancements of knowledge and communique applied sciences, resource-poor start-ups with on-line enterprise types have emerges in huge numbers. those organizations may be able to installation their competitve merits throughout their state forums early of their life-cycle and interact in overseas trade at a quick velocity. A elevated immediacy among the companies and the glabally obtainable consumer is saw.

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They predominantly adhere to larger, established and management-oriented firms and the entrepreneur, as an individual, is not considered on a personal level. In general, researchers in the IE field call for more situation-specific perspectives in research (Coviello and Jones, 2004; McDougall and Oviatt, 2005; Zahra and George, 2002). According to the international new venture theory the influencing factors of start-ups that internationalize are a) general industry characteristics (McDougall, 1989), b) characteristics of founders, for example knowledge and background (McDougall, Shane and Oviatt, 1994), c) international experience (Madsen and Servais, 1997), d) the strategy (McDougall, 1989), and e) the attitude and philosophy of the founder (McDougall, Shane and Oviatt, 1994).

25 cycles and economic-cycles the firm can diversify risks by subsequently proceeding into different markets at different points in time. However, opportunities are also associated with risks. Miller (1992) and Brouthers (1995) present three groups of risks; (a) firm-specific risks (b) industry risks and (c) general environmental risks12. Contrary to firm-specific and industry risks, general environmental risks are risks which apply to all firms independent of competition, for example, the political and environmental instability.

Cost-related factors are, for example, using surplus productive capacity to generate revenues in the foreign market, thus increasing the overall company surplus, or increasing productive capacity by producing for a foreign market, thus decreasing the costs per unit (Dienst, 2003). , 2005, p. 82). Opportunities arising for the firm itself when internationalizing include an increase in innovation and performance (Dienst, 2003; Herr, 2007), through increased know-how in multiple markets, increased in-house experience in management, production, and marketing but also knowledge transfer in the foreign market11.

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