The Degree of Internationalisation
After having examined the differences between firms with international activities and firms that stayed domestic, we were interested in finding out whether the same discriminating variables could also explain the degree of internationalisation of the start-ups in our sample. There is considerable debate about the appropriate definition of the degree of internationalisation of a firm (Sullivan 1994; Ramaswami, Kroeck and Renforth 1996; Reuber and Fischer 1997). Several measures have been proposed to operationalise this concept. We agree that internationalisation is a multidimensional construct that is probably not able to be captured using a single measure such as the share of non-domestic revenue. However, we also agree with those authors that are concerned with the loss of information through the construction of an index that combines several measures (Ramaswami et al. 1996). We therefore fol1owed the most widely adopted approach (see Sullivan 1994, for a extensive review of 17 studies) and chose the share of nondomestic revenues as measure of the degree of internationalisation of a firm.
KeywordsForeign Market International Activity Tobit Model German Firm Foreign Partner
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