Speed of internationalization and entrepreneurial cognition: Insights and a comparison between international new ventures, exporters and domestic firms

Abstract

This paper examines four aspects of managerial cognition among firms, as differentiated by speed of market entry. Aspects are: <i>risk perception, proactivity, tolerance for ambiguity</i> and <i>international orientation</i>. Internationalization speed is indicated by rapidity of first market entry resulting in three groups of firms: <i>international new ventures, traditional exporters</i> and <i>domestic firms</i>. For all groups, <i>proactivity</i> is the basic premise for <i>risk perception</i>, which in turn is the key variable in relation to internationalization speed. <i>Risk perception</i> is the element that may prevent a firm from internationalizing at all, in a timely manner, or fast enough to capture available opportunities.