Proceedings of 33rd International Business Research Conference
4 - 5 January 2016, Flora Grand Hotel, Dubai, UAE, ISBN: 978-1-922069-94-8
Internationalization, Geographic Location and
Entrepreneurial Intention
Julie Ann Elston* and Alois K. Weidinger**
This study examines the importance of geographic location on the empirical link between
internationalization and entrepreneurial intention across China. Results indicate that
location significantly impacts intention to start a firm, with rural China outpacing highly
internationalized Shenzhen and Hong Kong regions. Controlling for demographic
characteristics, empirical estimates show that higher degrees of regional
internationalization lead to lower levels of entrepreneurial intention. Our findings
contribute to the literature by revealing significant complexity in the relationship between
internationalization and entrepreneurship. Specifically, while highly internationalized
locations allow better access to resource markets they may also hinder entrepreneurship
for several reasons including the fact that these locations have higher competition for
resources. Empirical results support findings of studies on the presence of an inverse ushaped relationship between location and internationalization (Fernhaber, Gilbert, &
McDougall, 2008). We also conclude that he relatively higher levels of necessity based
entrepreneurship in rural China help explain the regional differences observed in total
entrepreneurial activity.
Key Words: Internationalization, Entrepreneurship, Geographic Location, China
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*Oregon State University, 228 Cascades Hall, 2600 NW College Way, Bend OR 97701-5998, tel: 541322-3165, email: julie.elston@osucascades.edu. **Higher Colleges of Technology, Abu Dhabi, UAE.