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International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China

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Abstract

This study presents the development and application of a new measure of international entrepreneurial capability. The data were collected from manufacturing firms in China, both traditional exporters and born global firms. Five key dimensions of international entrepreneurial capability were identified from the capability and entrepreneurship literature. After scale purification and validation, this new measure was used to examine the relationship between international entrepreneurial capability and global market performance. Born global firms are statistically different from traditional firms along three dimensions: international learning capability, international networking capability, and international experience. Implications and future research directions are then provided.

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Notes

  1. Usually, the reliability of second-order factor is not computed. We adapted a procedure described in Kumar et al. (1995). Approximate loadings of the items on the second-order construct were computed by multiplying the standardized first-order loadings with the standardized second-order loadings. The approximate loadings for the 15 items computed in this way were used to estimate the composite reliability.

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Author information

Authors and Affiliations

  1. Department of Management, Bowling Green State University, College of Business Administration, 3009 BAA, Bowling Green, OH, 43403, USA

    Man Zhang

  2. Washington State University, Pullman, WA, 99163, USA

    Patriya Tansuhaj

  3. School of Business and Leadership and George Frederick Jewett Chair in International Business at the University of Puget Sound, Tacoma, WA, 98416-1032, USA

    James McCullough

Authors
  1. Man Zhang
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  2. Patriya Tansuhaj
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  3. James McCullough
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Corresponding author

Correspondence to Man Zhang.

Appendix A. Summarized items in the international entrepreneurial capability scale

Appendix A. Summarized items in the international entrepreneurial capability scale

International marketing capability

(Please indicate whether your firm is worse or better than your main competitors in the following areas in the international markets. A seven-point ordinal scale was used where 1 = much worse and 7 = much better).

  1. IMC1.

    Ability to use marketing tools to differentiate firm products

  2. IMC2.

    Advertising effectiveness

  3. IMC3.

    Control and evaluation of marketing activities

International learning capability

(Please indicate whether your firm is worse or better than your main competitors in the following areas in the international markets. A seven-point ordinal scale was used where 1 = much worse and 7 = much better).

  1. ILC1.

    Knowledge of customers and competitors

  2. ILC2.

    Development or adaptation of the product

  3. ILC3.

    Effectiveness of pricing

International networking capability

(Please indicate to what extent you agree/disagree with the following statements. A seven-point ordinal scale was used where 1 = strongly disagree and 7 = strong agree).

  1. INC1.

    We have technology-based links with customers in international markets.

  2. INC2.

    We have technology-based links with suppliers in international markets.

  3. INC3.

    We have entrepreneurial collaborations with external partners.

Innovative and risk taking capability

(Please indicate to what extent the following are found in your firm. A seven-point ordinal scale was used where 1 = not at all and 7 = to an extreme extent).

  1. IRC1.

    Willingness to stick necks out and take risks

  2. IRC2.

    Commitment to innovation and development

  3. IRC3.

    Readiness to meet new challenges

International experience

(Please indicate to what extent you agree/disagree with the following statements. A seven-point ordinal scale was used where 1 = strongly disagree and 7 = strong agree).

  1. IEO1.

    Top management is experienced in international business.

  2. IEO2.

    Top management tends to see the world as the firm’s marketplace.

  3. IEO3.

    Top management continuously communicates its mission to succeed in international markets to firm employees.

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Zhang, M., Tansuhaj, P. & McCullough, J. International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China. J Int Entrep 7, 292–322 (2009). https://doi.org/10.1007/s10843-009-0042-1

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  • DOI: https://doi.org/10.1007/s10843-009-0042-1

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