Proceedings of 30th International Business Research Conference

Proceedings of 30th International Business Research Conference
20 - 22 April 2015, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-74-0
A Longitudinal Study of the Technology Based Venture from a
Transition Economy
Modestas Gelbuda, Ruta Kazlauskaite1, Tadas Sarapovas and Sarunas
Prevailing theories of the internationalization process have its origins in the Western conceptual
tradition, predominantly, the transaction cost economics and behavioural theory, and more
recently network approach, institutional theory and emerging entrepreneurial perspectives.
Furthermore, received internationalization theories are mostly based on empirical evidence
reflecting behaviour of the North American and European firms. With an increasingly global
economy and the growing impact of emerging economy firms, a number of influential scholars
have called, first, for more research on the internationalization of firms from the emerging and
developing economies, and, secondly, for more indigenous research, carried out by scholars,
deeply encultured into contexts, where research studies are carried out, and therefore able to
contribute not only fresh empirical evidence, but also new perspectives and interpretations.
Our paper addresses this research gap by presenting a unique longitudinal study of a high
technology firm, founded two years after the breakdown of the Soviet Union. The study reports
data on the internationalization process covering almost 20 years and examines entries into more
than 40 different markets. Unlike many studies, which focus on state or newly privatized
enterprises, our research covers both closely intertwined processes: new venture creation and
internationalization under conditions of radical political and economic transformation, further
complicated by a lack of capital, knowledge of foreign markets and management and
entrepreneurial practices.
Our study employs a single case study research strategy. The case was selected by using
extreme / rare case logic, as there are few firms in Lithuania, whose growth process can be
characterized as accelerated internationalization. To understand such accelerated
internationalization from a transition economy perspective, we conducted a series of interviews
with key people involved in international activities throughout the whole process, collected media
reports and analysed internal documents.
Based on empirical evidence, the paper develops a set of propositions and a preliminary process
model. The most unexpected findings are related to the existence, within the firm, of different
logics of dealing with a market for different regions, early focus on R&D, and skilful management
or inward-outward connections and partnerships agreement with global firms, geared towards
further advancement of international growth.
Paper concludes by discussing limitations and outlining theoretical and managerial implications
for managing internationalization process in uncertain environments of emerging economies
under transformation.
Track: Management (International Business)
JEL Codes: F20, F23 & M13
Modestas Gelbuda, Ruta Kazlauskaite, Tadas Sarapovas and Sarunas Abramavicius Corresponding author
ISM University of Management and Economics, Arkliu Street 18, Vilnius 01305, Lithuania
[email protected], Tel. +370 620 87543, Fax +370 5 212 3961