Networking for internationalization: are young companies different from older ones?

Abstract

The internationalization process is complex, costly and uncertain. Existing theories stress the role of learning and knowledge and the role of networks in the acquisition of resources and information that affect the internationalization process. The “revised” Uppsalla model (Johanson and Vahlne 2009) incorporates relational networks, considering they have a strong impact on market selection, as well as on the identification of opportunities. The theory of International New Ventures (INV) emphasizes the importance of relational networks and vicarious learning as a way for companies to acquire knowledge about the external market. Some scholars consider that the participation in networks is particularly beneficial for younger and smaller firms. However, it is still unclear how the reliance on various network relationships potentially differs among younger and older ventures. This paper tackles this question by using a novel survey dataset of 238 Portuguese firms and a quantitative approach base on a descriptive and inferential analysis.