Timing of International Market Entry of UK and German High-Tech Start-Ups

23 Pages Posted: 27 Apr 2003

See all articles by Andreas Fier

Andreas Fier

Deutsche Telekom AG

Georg Licht

ZEW - Leibniz Centre for European Economic Research

Gordon C. Murray

University of Exeter Business School

Date Written: September 15, 2001

Abstract

We examine the impact of technological product advantages, prior international experience of the management, firm size and age, country differences, and sunk costs as determinants of the timing of international market entry. The timing of internationalisation is analysed using 'event history analysis' for 600 British and German start-up companies in high-technology industries. The results indicate that the incidence of internationalization increases over time. For the majority of new firms the question is not whether the firm will internationalize but when. The analyses indicated that a high commitment to R&D fosters rapid internationalization. The involvement of founder managers who are internationally experienced increases the speed of foreign market activity. Working against rapid internationalization was a high level of product customization. The findings suggest that timing of internationalization is a dynamic process which is influenced by initial human capital endowment, technological advantages, and learning from of day to day activities.

Keywords: start-ups, high-technology industries, internationalisation

JEL Classification: L21, L60, F23

Suggested Citation

Fier, Andreas H. and Licht, Georg and Murray, Gordon C., Timing of International Market Entry of UK and German High-Tech Start-Ups (September 15, 2001). ZEW Discussion Paper No. 01-51, Available at SSRN: https://ssrn.com/abstract=372120 or http://dx.doi.org/10.2139/ssrn.372120

Andreas H. Fier (Contact Author)

Deutsche Telekom AG ( email )

Friedrich Ebert Allee 140
Bonn, 53113
Germany
+49 228 181 99520 (Phone)
+49 621 181 99599 (Fax)

HOME PAGE: http://www.telekom.de

Georg Licht

ZEW - Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany

Gordon C. Murray

University of Exeter Business School ( email )

Streatham Court
Rennes Drive
Exeter EX4 4PU
United Kingdom
+44 777 522 0857 (Phone)

HOME PAGE: http://business-school.exeter.ac.uk/staff/profile.php?id=34

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