1/5 International entrepreneurship: Focus on Latin America Sascha Fuerst (sfuerst@eafit.edu.co) Associate Professor, Department of Organization and Management, Universidad EAFIT, Medellin, Colombia Course introduction The same as Mark Zuckerberg started his multi-million dollar business with Facebook in the dormitory of Harvard, young Colombians with their home computers and few investments create [mobile] applications that are not only [internationally] recognized but also profitable. Besides the application Tappsi, there are others less known in Colombia but successful abroad. According to the Viva Colombia classification in the App Store, the local firms that are international best-sellers are the paisas Hi Mom and C2 Game Studio and the bogotanos Brainz and Efecto Studios whose [mobile] applications where among the Top 10 downloads in the United States. (Dinero, Colombian Business Magazine, 2014) The statement above illustrates a business practice we are increasingly witnessing in Colombia the entrepreneurial internationalization efforts of (often) newly founded ventures. Certainly it is not a phenomenon unique to Colombia. New ventures that internationalize rapidly can be found globally. The activity of entrepreneurial internationalization or cross-border entrepreneurship belongs to the field of international entrepreneurship which is considered to be located at the intersection of entrepreneurship and international business. It is commonly defined as the discovery, enactment, evaluation, and exploitation of opportunities across national borders to create future goods and services. International entrepreneurship emphasizes the existence of firms that internationalize rapidly soon after their foundation or instantly from inception, often not even having sales in their home market. They are known as high technology start-ups, international new ventures, born globals, or instant internationals. Their internationalization behavior contrasts that of conventional firms whose international involvement is described as a gradual development process characterized by a relatively long domestic business period before internationalization occurs. Ventures that go global early and rapidly are also said to behave differently from other new ventures that rather focus on domestic markets before entering international markets. The entrepreneur of such an international venture is often more risk-taking, proactive, and innovative in exploring and exploiting opportunities across national borders compared to his or her domestic counterpart. In short, early and rapid internationalization requires an entrepreneurial behavior that crosses borders and that is also known as entrepreneurial internationalization. This course provides an overview about international entrepreneurship and entrepreneurial internationalization in particular. You will learn about the antecedents, processes, and outcomes of entrepreneurial internationalization in general, but nonetheless embedded within the context of Latin America. Why Latin America? Certainly because I am based in Colombia and my particular
2/5 research interest is in the internationalization behavior of international new ventures from Colombia. Besides, Latin America holds a great potential for doing business both from within and with the region. Despite the differences and challenges of starting and operating a business within Latin America, as compared to the U.S., the region is also home to the world s largest economies in terms of their gross domestic product such as Brazil, Mexico, Argentina, Venezuela, Colombia, and Chile. Countries like Argentina, Colombia, Costa Rica, and Uruguay created the needed skills in order to serve as global export-hubs for the outsourcing of business processes to companies in the U.S., India, and Europe. Innovation and entrepreneurship is also thriving within the region led by Chile, Colombia, Costa Rica, Mexico, and Uruguay. Brazil has the world s fifth-highest number of start-ups, Start-up Chile has been awarded as one of the world s best incubator programs by Fast Company Magazine, and the city of Medellin in Colombia was recently recognized as the world s most innovative city by Citi Bank and the Wall Street Journal. Therefore, creating and operating a new venture within the region can be worthwile, be it to serve customers in Latin America or as a base from where to exploit business opportunities globally. General course objectives To develop a critical understanding about the antecedents, processes, and outcomes of entrepreneurial internationalization. To familiarize with the Latin American context of entrepreneurship and international entrepreneurship. Course content Part 1: Entrepreneurship and international entrepreneurship: An introduction To familiarize with different definitions about entrepreneurship and international entrepreneurship. To familiarize with the concept of the international new venture/born global firm and its characteristics. To identify and provide an understanding about the key drivers and factors influencing international entrepreneurship in general. To develop an understanding about the peculiarities of starting and running a born global firm from Latin America. Part 2: Institutions and ecosystems that foster entrepreneurship and international entrepreneurship. To develop a general understanding about the role of ecosystems and the impact of institutional factors on international entrepreneurship. To familiarize with entrepreneurship and entrepreneurial ecosystems in selected countries in Latin America. To develop an understanding about the role of institutions and ecosystems for entrepreneurial internationalization in Latin America.
3/5 Part 3: The international entrepreneur To demystify the entrepreneur and the international entrepreneur. To differentiate between the entrepreneur and the manager. To differentiate between causal and effectual decision making during the process of entrepreneurial internationalization. To develop an understanding about the traits and abilities of an international entrepreneur in Latin America. Part 4: The role of networks for entrepreneurial internationalization To recognize the importance of networks and relationships for entrepreneurial internationalization. To gain an understanding about the role of networks in different institutional environments. To gain an understanding about the link between the international new venture and the larger multinational company. To develop an understanding about the role of networking for entrepreneurial internationalization in Latin America. Assessment The course assessment is based on three components. Two individual assessments and one group evaluation. 1) Individual preparation of readings, cases, and class discussion: 40 points 2) Group presentation on the entrepreneurship profile of a selected country in Latin America: 30 points 3) Individual reflective memo on the course learning (to be submitted after the course): 30 points Literature (Note: This is only a selection of literature the course is based on. The particular readings for each session will be send the week prior to the beginning of the course) Dimitratos, P. & Plakoyiannaki, E. (2003). Theoretical foundations of an international entrepreneurial culture. Journal of International Entrepreneurship, 1(2), 187 215. Effectuation (2016). Retrieved from http://www.effectuation.org Felzenzstein C. et al. (2015). Networks, entrepreneurial orientation, and internationalization scope: Evidence from Chilean small and medium enterprises. Journal of Small Business Management, 53(S1), 145-160. Ferro, L. M., Préfontaine, L., & Skander, D. (2009). How do social networks make a difference in the internationalization of high-tech SMEs? The case of Colombia. Entrepreneurship and Innovation, 10(3), 201-212.
4/5 Fuerst, S. (2010). Global value chains and local cluster development: A perspective on domestic small enterprises in the 3D-animation industry in Colombia. AD- MINISTER, 16 (January-June), 89-102. Fuerst, S. (2013). Dewak: The positioning and growth of a born global software firm from a developing country. In Prem Ramburuth, Christina Stringer, & Manuel Serapio (Eds.), Dynamics of International Business: Asia-Pacific Business Cases, (pp. 63-72). Cambridge: Cambridge University Press. Fuerst, Sascha & Zettinig, Peter (2015). Knowledge creation dynamics within the international new venture. European Business Review, 27(2), 182-213. Gabrielsson, M., Kirpalani, V. H. M., Dimitratos, P., Solberg, C. A., & Zucchella, A. (2008). Born globals: Propositions to help advance theory. International Business Review, 17(4), 385-401. GEM Global Entrepreneurship Monitor (2016). Retrieved from http://www.gemconsortium.org Harris, S. & Wheeler C. (2005). Entrepreneurs relationships for internationalization: Functions, origins and strategies. International Business Review, 14(2), 187-207. Isenberg, D. J. (2008). The global entrepreneur: A new breed of entrepreneurs is thinking across border from day one. Harvard Business Review, 86(12), 107-111. Kiss, A. N. & Danis, W. M. (2008). Country institutional context, social networks, and new venture internationalization speed. European Management Journal, 26(6), 388 399. Kit I, Sin (Ed.) (2016). Case studies: Firm internationalization Greater Medellin area. Medellin: Ruta N. McDougall, P. P., Shane, S., & Oviatt, B. M. (1994). Explaining the formation of international new ventures: The limits of theories from international business research. Journal of Business Venturing, 9(6), 469-487. Newburry, W. & Gonzalez-Perez, M.A. (2015). International business in Latin America: Innovation, geography and internationalization. Hampshire: Palgrave Macmillan. Sarasvathy, S. D. (2016). What makes entrepreneurs entrepreneurial? Retrieved from http://www.effectuation.org Vapola, T. J. (2011). The laws of attraction: What attracts innovative start-up firms to partnerships with global MNCs? Journal of International Entrepreneurship, 9(1), 39-61. Zettinig, Peter, Sandberg, Birgitta, & Fuerst, Sascha. Value creation during different development stages: What changes when an entrepreneurial firm transforms into a multinational corporation? In Svetla Marinova, Jorma Larimo, Niina Nummela (Eds.), Value creation in international business: An SME perspective. London: Palgrave McMillan Springer. (Forthcoming) Biographical note Sascha is Associate Professor within the Department of Organization and Management at Universidad EAFIT in Medellin (Colombia). He teaches international entrepreneurship within the Master of International Business (MIB). At Universidad EAFIT he is former MBA Program Director and former Department Head International Business. He
coordinated the undergraduate, graduate certificate program in international business, and created the Master in International Business (MIB) program. Prior to joining academia he was working as International Business Consultant at Global Entrepreneurs AS in Bogota/Medellin (Colombia), Project Manager at AccessCAPITAL LLC in Bangkok (Thailand), and Project Coordinator International Marketing at GeoVision Software Inc. in Jaipur (India). Sascha is member of the Finnish Graduate School of International Business (KATAJA FIGSIB), the Academy of International Business (AIB), the UNCTAD Virtual Institute on Trade and Development (Vi UNCTAD), and the Pacific Asian Consortium for International Business Education and Research (PACIBER). His research interests are in international entrepreneurship and small firm internationalization. His research has been published, among others, in the European Business Review, Cuadernos de Administración, AD-Minister, Cambridge University Press, the Case Centre, and UNCTAD. 5/5