Lee Li is a Professor in the School of Administrative Studies at the York University, Toronto, Ontario, Canada.
Should Small, Young Technology-Based Firms Internalize Transactions in Their Internationalization?
Article first published online: 6 DEC 2013
© 2013 Baylor University
Entrepreneurship Theory and Practice
Volume 39, Issue 4, pages 839–862, July 2015
How to Cite
Li, L., Qian, G. and Qian, Z. (2015), Should Small, Young Technology-Based Firms Internalize Transactions in Their Internationalization?. Entrepreneurship Theory and Practice, 39: 839–862. doi: 10.1111/etap.12081
This study is supported by the Standard Research Grants of the Social Sciences and Humanities Research Council of Canada (File number: 410-2010-2289). The authors thank Professor Thomas Keil and three anonymous referees for their insightful and constructive comments.
- Issue published online: 2 JUL 2015
- Article first published online: 6 DEC 2013
- Social Sciences and Humanities Research Council of Canada. Grant Number: 410-2010-2289
Small, young entrepreneurial firms' governance structure across countries has generated an interesting debate in recent years. That is, should these firms internalize or externalize transactions in their internationalization? Existing studies suggest that there are advantages and disadvantages to both structures, but the findings are mixed. This study explores the factors that determine the governance structure of small, young technology-based entrepreneurial firms (SYTEFs). Evidence collected in this study indicates that choice of governance structure by SYTEFs is determined by a specific set of conditions, specifically, their choice of governance structure depends on their strategic assets, industry dynamism, and business scope.