The internationalization of European start-ups from the telecommunication sector

Résumé du document

Internationalization as a growth strategy for newly created firms in their first years has been a very attractive field of researches in the past years in terms of strategy. These researches have led to a questioning and a renewal of the main theories of firm internationalization (Mcdougall & Oviatt, 2000). Contrary to earlier researches that focused on environmental factors and the potential pressures and competitors of firms wanting to go international, the recent studies analyze the process and modes by which start-ups increase their activity during the years following their creation (Andersson, 2000). New technical terms have been invented to match the situation of these firms of a new genre, such as "born global start-ups" (Oviatt & McDougall, 2004) or "international start-ups" (Johnson, 2004).

For the newest start-up of the Information and Communication Technologies business area, internationalization is not a natural development following years of domestic success anymore, but an initial strategy of growth and, for some, a necessary one. This is especially true for firms whose activity is based on new technologies, as these technologies are born on globalized market and have to integrate globalized distribution networks and logistical constraints.

Extraits

[...] Keeping that in mind, it seems necessary to provide these companies with better guidelines about how to successfully internationalize their business. In order to achieve that, this thesis will tackle the internationalization of Information and Communication Technology companies. The subject being wide, this paper will focus on start-ups, which are more challenging in terms of expansion. The opening to the world of young firms is indeed more risky than for established companies but it is also a huge advantage for the company when successful. Start-ups are the future big companies of each country and must therefore be paid particular attention. [...]

[...] Their internationalization is early, rapid and even brutal is some ways. The testing period of export or intermediaries is often skipped and replaced by a physical presence in the foreign markets as soon as is financially possible. At a European level, companies seem to share a similar behavior and spirit of ambition. The new start-ups leaders are flexible, reactive and daring everything to lead their company to a better share of the ICT global market 蔡 智 纯 - 1134974 Acknowledgment I would like to thank Prof. [...]

[...] Our four cases have participated to this movement of internationalization, either from its beginnings in the 1980's or later in time. However, the Telecom sector seems a good example to represent the ICT sector as a whole, as Telecoms companies provide both products and services Their internationalization in brief Orange Orange started entering foreign countries very early after its creation, that is to say in 1998, when it was launched in Hong-Kong with a huge success. The brands then entered Austria, Switzerland and Belgium in 1999 and started licensing to various operators in HongKong, Israel, India and Australia the same year. [...]

[...] Calof and Beamish (1995) have 11 蔡 智 纯 - 1134974 proposed a definition of internationalization as process of adapting firms operations (strategy, structure, resource, etc.) to international environments''. In this definition, internationalization is described as an active phenomenon, whereas the definition from Jones and Coviello (2005, p. 292) describes it more as the observation of experience and events, as follows: . internationalization may be captured as patterns of behaviour, formed by an accumulation of evidence manifest as events at specific reference points in time''. These two definitions, however, agree on one point: internationalization is different from globalization. Indeed, the two concepts, though related, are to be distinguished. [...]

[...] Compared to other kinds of startups, the ICT ones are more likely to participate into global or international trade, their products being part of a global or international demand right from the start (Shrader, Oviatt and McDougall, 2000). The ICT products are new and born in a global environment which involves global and international pressure, constraints and challenges for the startup offering them. OECD countries as well as newly industrialized countries have known a huge expansion of their business in ICT since the 1980's. In the early 2000's, Germany's value-added in ICT reached almost 10% of its GDP. Even though ICT, as seen previously, contains various branches, the products and services are generally highly internationalized. [...]