Environmental Factors Influencing the Internationalisation of a New Venture in the German Pork Industry: a Case Study
Environmental factors influencing the internationalisation of a new venture in the German pork industry: A case study
By George ten Kate
University of Groningen
Faculty of Economics and Business
June 2012
Gerbrand Bakkerstraat 51
9713 HC Groningen
(06)58967820
sjorstenkate@hotmail.nl
Student number 1565095
Abstract
This paper offers exploratory insights into the ways in which environmental factors influence the internationalisation of a new low-technology firm, two topics that are largely understudied in the field of international entrepreneurship. By analysing data and literature, the influence of market conditions, industry characteristics and global niche market opportunities are examined, using a case study of a company that is active in the German pork market. The findings of this study are: (1) the major driver for the company 's internationalisation are market conditions; (2) the degree of industry internationalisation, the stage of evolution of the industry and global niche market opportunities influenced the process to a lesser degree.
Keywords: New venture internationalisation – environmental factors – industry characteristics – low-technology sector - Germany
1.INTRODUCTION
According to McDougall et al. (1994) the international landscape is rapidly becoming a strategic route for survival for new companies. The global economic integration, the changing global business environment and advances in technology and communications have created unprecedented opportunities for small companies to extend their sales activities beyond the domestic market (Evers, 2011). International entrepreneurship seeks to exploit these opportunities. It has been considered 'the process of creatively discovering and exploiting opportunities that lie outside a firm 's domestic markets in the pursuit of competitive advantages ' (McDougall et al, 2003). When these opportunities are exploited, international new ventures arise. An
By George ten Kate
University of Groningen
Faculty of Economics and Business
June 2012
Gerbrand Bakkerstraat 51
9713 HC Groningen
(06)58967820
sjorstenkate@hotmail.nl
Student number 1565095
Abstract
This paper offers exploratory insights into the ways in which environmental factors influence the internationalisation of a new low-technology firm, two topics that are largely understudied in the field of international entrepreneurship. By analysing data and literature, the influence of market conditions, industry characteristics and global niche market opportunities are examined, using a case study of a company that is active in the German pork market. The findings of this study are: (1) the major driver for the company 's internationalisation are market conditions; (2) the degree of industry internationalisation, the stage of evolution of the industry and global niche market opportunities influenced the process to a lesser degree.
Keywords: New venture internationalisation – environmental factors – industry characteristics – low-technology sector - Germany
1.INTRODUCTION
According to McDougall et al. (1994) the international landscape is rapidly becoming a strategic route for survival for new companies. The global economic integration, the changing global business environment and advances in technology and communications have created unprecedented opportunities for small companies to extend their sales activities beyond the domestic market (Evers, 2011). International entrepreneurship seeks to exploit these opportunities. It has been considered 'the process of creatively discovering and exploiting opportunities that lie outside a firm 's domestic markets in the pursuit of competitive advantages ' (McDougall et al, 2003). When these opportunities are exploited, international new ventures arise. An
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