Theoretical Foundations of Entrepreneurship

Abstract

On the basis of the explanations in the preceding chapters with reference to EVentures with distinguished internationalization behavior patterns, the need for holistic explanation approaches for internationalization propensity was assessed. In this following part theoretical foundations of entrepreneurship theory will be applied to the research problem at hand to achieve a better analysis of the internationalization decision and the phase of internationalization propensity. Inasmuch as internationalization behavior encompasses the recognition of business opportunities across borders it is believed that young firms’ internationalization comprises entrepreneurial activity. Further, it is postulated that “it might be that the entrepreneurial way of life takes precedence over national culture in small firms” (Boter and Holmquist, 1996, p. 479), and thus the internationalization processes may be more closely linked to individual rather than formal structures. A research study comparing the internationalization propensity of 357 young German and Chinese students conducted by Kollmann et al. (2007) found that although the political, economical and cultural contexts of the two groups differed highly, the propensity to become entrepreneurial is anchored within the individual in both countries. Moreover, while political, microeconomic and macroeconomic environments showed to have a low impact on the individual, the cultural environment had a significant influence on the individuals from both countries.