Table of Contents
2.0 International opportunity recognition.
3.0 Defining entrepreneurial opportunity.
4.0 Drivers of international entrepreneurship opportunities.
4.1 Prior Knowledge.
4.2 International network structure.
4.3 Entrepreneurial orientation.
4.4 Competitive edge.
4.5 Technological factor
5.0 Theories of internationalization.
6.0 Processes/approaches to international market entry.
The entrepreneurship businesses have a story of the beginning and successful outcomes. Coviello and McAuley (2013) suggested that to explain them, the theories of strong and stable internationalization are needed to be conciliated with them. However, According to Styles and Seymour (2016), these explanations exhibit some issues. Therefore, researchers suggested some other kind of description. Shane (2014) stated that among these new kinds of descriptions given by the researchers’ one of the significant matters is strong opportunity acknowledgment in the international business world. Arenius and de Clercq (2015) revealed that most of the research works of entrepreneurship for opportunity detection have been in domestic conditions. Following the statement given by Lumpkin and Lichtenstein (2015), the subsisting theories of internationalization tactically anticipate that the internationalization process is introduced by the opportunity identification process.
However, these theories give only little explanations of these matters. In their assertion about internationalization, Johanson and Vahlne (2017) only utilized the word “opportunity”. However, they did not mention any explanation behind the way of recognizing it. Nevertheless, Jones and Coviello (2015) disclosed that the significance and the amount of literature on the combination of internationalization and entrepreneurship are growing day by day. Despite that, Styles and Seymour (2016) revealed that at present experimental research works regarding the method identifying the international opportunities are very few. Styles and Gray (2016) suggested that the international marketing review has identified this matter as a special issue in their publication. Therefore, Matthews and Zander (2017) recommend that opportunity recognition in internationalization has been receiving a large amount of interest in the international business in the present years. In this paper, how the firms can penetrate the international market initially, or how they can get into other international markets and the ways of taking advantage of them are discusses mainly.
2.0 International opportunity recognition
Cantillon (2017) revealed that earlier literature of economics determined entrepreneurs as arbitrage dealers or in other words traders. On the other hand, Ucbasaran, et. al. (2014) disclosed that with time the literature got advanced and entrepreneurs got various descriptions like arrangers of manufacture and distributions etc. However, there are three opposing intellectuals Kirzner, Schumpeter and Knight who gave the most effective and significant theories of entrepreneurship. According to their theories, entrepreneurship can be viewed as, 1) a process of discovery, 2) a process of innovation, and 3) a process of uncertainty bearing.
Following the views of Kirzner (2012), entrepreneurship can be described as the facilitator and pathfinder of the marketing methods. According to Kirzner (2012), entrepreneurs identify the chances of profit for their business. Therefore, the market reaches a balanced position from an imbalanced state. Hayek (2016) disclosed that, in Kirzner’s view, the market is always in an imbalanced position because of less and defective information. On the other hand, Shane and Venkataraman (2014) suggested that, when the entrepreneurs discover the chances of profits, the others get alerted. Then they start to mimic the opportunities until the competition decreases and profit levels get reduced. However, Kirzner’s (2012) theory’s main contribution is to know about the ‘alertness’ in entrepreneurial exploration. In addition, knowing the purpose of learning and improving the marketing process is another contribution of the Kirzner (2012) theory.
According to Schumpeter’s theory, entrepreneurship has been described as innovative and a driving force of market change rather than an unbalanced procedure. In his view, Schumpeter (1934) suggested about five kinds of innovations in the case of entrepreneurship. They are 1) new products inauguration, (2) Introducing a new manufacturing process, (3) new market opening, (4) new supply sources or material for products introduction in the market, and (5) making a new organizational structure. Roy (2016) stated that, under Schumpeter’s theory in the case of gaining market balance, the innovators enjoy the power of temporary monopoly initially. Then when the others find out about the profit earning ways, they start to mimic the market turns into a balanced position again.
However, Knight (2013) the other scholar of economics considers entrepreneurship like a process of uncertain bearing. Knight (2013) stated the concept of risk as a measurable fact. On the other hand, Buchanan and Vanberg (2016) revealed that Knight (2013) considered uncertainty as a noncalculable fact. In entrepreneurship, the reward for uncertainty bearing is profit which is also called residual income. According to Buchanan and Vanberg (2016), a market is a creative place, therefore, anticipating the future in the market is difficult.
3.0 Defining entrepreneurial opportunity
Gartner (2017) suggested that entrepreneurship does not possess any definition which is settled by common consent. On the other hand, Ucbasaran et al. (2014) stated that entrepreneurship has got a common theme that has been appeared around the context of entrepreneurial opportunity. Here, Eckhardt and Shane (2013) defined the opportunity as the cardinal component in the process. On the contrary, Shane and Venkataraman (2014) disclosed that entrepreneurs identify the opportunities in the market in different ways. However, Gartner (2017) reported that those identifying the opportunities are not understood well yet. Opportunities can be described as various paths to get profits or to innovate or to develop the situation of the business company or a person. In addition, these paths can be found in a summarized way through Schumpeter’s theory. The importance of the opportunities in the market can differ based on the involvement of the likely innovation. On the other hand, Roy et al. (2014) suggested that among many innovations one of them is radical innovation.
Radical innovation can be described as the innovation which needs elementary changes in the product or service format. In addition Kirzner (2012) stated that radical innovation involves new purpose and relationships to establish the product or service in the market. Gartner (2017) added that there are other kinds of opportunities. Their features can be explained as products with gradual innovation or modification, more tuned-up structures of the subsisting products in the market etc. Moreover, Lumpkin and Dess (2016) suggested some examples of other types of opportunities like improved pricing strategies or promotional work strategies that can bring new changes to the business. Again, buying raw materials from foreign markets at a lower price or using the raw materials of domestic areas to improve the product can create many opportunities for the business. In addition, outsourcing of the manufacturing ability to decrease the cost can also be called opportunities as the name of nonentrepreneurial opportunities……………