Year: 2014
Type: dissertation
Abstract: Despite international business incubators becoming more widespread in recent years, \nknowledge about the role they can play in helping a firm to enter a foreign market is limited. \nDrawing upon interviews with 47 managers from 24 firms and organisations that have used an \ninternational business incubator operated in China by UK export promotion organisation the \nChina-Britain Business Council, this research finds that the low risk, high control environment \noffered by business incubation can reduce the overall cost of commitment for entering a foreign \nmarket and thereby trigger a firm’s decision to enter it when such a move would otherwise be \nconsidered too risky or costly. Furthermore, during the business incubation process, the firm is \nable to benefit from an infusion of foreign market knowledge, network expansion and business \ndevelopment support, which provides it with the confidence to exit the business incubator and \nmake a full market commitment of its own. In doing so, business incubation can the reduce the \nliabilities of foreignness experienced by the firm, and give rise to an accelerated, low risk and \ncontrolled foreign market entry process. \nThese findings extend theory from the international business studies literature into the domain \nof business incubation. They also extend and apply theory from the business incubation \nliterature (until now concerned with company growth and development in home markets) to the \ninternationalization of the firm. The findings are particularly relevant for SMEs (small and \nmedium-sized enterprises) seeking ways to overcome the fears and challenges of entering into \npromising but ‘difficult’ emerging markets, such as China. The findings also have implications \nfor policy makers seeking effective methods to support the international business and trade \nactivities of firms and organisations.
Author: Giles Blackburne
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: green
Funder: University of Leeds
OpenAlex ID: W1504658334