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Published in: Journal of International Entrepreneurship 2/2022

01-07-2022

Perspective on early internationalizing firms: Three decades of international entrepreneurship developments

Author: Hamid Etemad

Published in: Journal of International Entrepreneurship | Issue 2/2022

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Smaller internationally oriented firms have been indirectly competing in international markets with both the indigenous firms and larger international enterprises, mostly through indirect exporting for some time, but their direct and active presence was not documented until the late 1970s (McDougall 1989; Oviatt and McDougall, 1994, 1995; McDougall et al. 1994; Dana et al. 1999; Zahra and George 2002). However, international entrepreneurs’ participation in international trade, and presence in major national markets, goes back to some four centuries ago. For example, their international activities through the ancient trading route, later known as the “Silk Road” (Härtel and Yaldiz 1982; Liu 1997, 1998), spanned from the Far East all the way to Central Europe starting in Shanghai and Xian in the historic lands of the Chinese Dynasties, passing through few cities in present India, cities in the present Persian Empire (e.g. present Isfahan and Kerman), Aleppo in Assyria (present Syria), Istanbul in Anatolia (present Turkey), Gandhari (in Central Asia) and Athens in present Greece, amongst others cities, before reaching Central Europe for many centuries. There were also other international trading missions traveling through different routs starting and returning to certain ancient cities for trading with other national trading centers on the route for a long time, which suggests that there has been a long set of evolutionary international activity long before the early documentation of international entrepreneurship (IE) in the decades of 1970s and 1980s. The records of the above historical international entrepreneurial activities were documentations by religious missionaries. They indicate that ancient religious missionaries from India, the Middle East and Far East traveling to other regions used the ancient trading route, and documented the presence of the old trade infrastructure1 (Liu 1997). Missionaries mostly traveled with the trading “Caravans” (e.g. the ancient international trade missions) that traveled mainly on the trade routes, relied on the postal and trade infrastructure and stayed at the “Caravan Saras”, which were initially constructed for overnight stays and support of the first Royal Postal Couriers, created by the Persian Achaemenian Dynasty in 140–145 BCE, which were later used by international traders as temporary accommodations to rest and to replenish their food, horses and camels used by traders. This postal infrastructure was gradually extended and used by trading missions that were popularized later on (in the fifteenth century AD) as the “Silk Road”.2

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Footnotes
1
Buddhism spread across Asia through networks of overland and maritime routes between India, Southeast Asia, Central Asia and China. The transmission of Buddhism to Central Asia and China corresponded with the development of the trading routes as channels for intercultural exchanges. (https://​depts.​washington.​edu/​silkroad/​exhibit/​religion/​buddhism/​buddhism_​silkroad.​html#:​~:​text=​Buddhism%20​spread%20​across%20​Asia%20​through,as%20​channels%20​for%20​intercultural%20​exchanges).
 
2
An example of such trading routes stretching from the present China to the Roman Empire (i.e. the present Central Europe) was later known as the “Silk Road” in fifteenth century AD after the Ottoman Empire boycotted trade with China and was popularized mainly due to Marco Polo’s writings. (https://​www.​history.​com/​topics/​ancient-middle-east/​silk-road).
 
3
The present central “Bazaar “system in major cities of the older countries is still an integral part of the national distribution and trading systems. The system is a remnant of the past, where it was the major location for receiving the international trade mission, buy from them, sell local products to them and keep international supplies in major warehouses attached to, or located in the proximity of, the e Bazaar. Example of actively operating Bazzars are found in the older cities, such as Aleppo (Syria), Baghdad (Iraq), Hamedan and Isfahan (Iran), Lahore (Pakistan) Istanbul (Turkey) and Kuwait, amongst others (see Dana and Etemad 2022).
 
4
Prospectors are geological, mineral and mining experts who look for evidence helping, finding and even guiding the discovery of new minerals to be mined later. They need to fully chart the landscape to remove the information gaps and substantively document the presence of certain minerals in terms of their characteristics. Their aim of looking for a certain mineral(s) may limit their perspective and is likely to leave information gaps. Other prospectors with different aim and perspective are likely to cover those gaps. The integration of such documented evidence of different minerals is usually for others to mine the minerals later on. It is, therefore, logical to suggest that scholars’ research in developing new insights is similar to prospectors fully charting a landscape in terms of identifying its rich subsoil minerals for others to use.
 
5
Etemad (2004) has argued that the practice of international entrepreneurship goes beck to before the Common Era (see the early part of the next section on historical developments). Therefore, 1970s should be considered as the re-emergence of the field.
 
6
Logically, such longitudinal research discoveries of a field would enrich and expand the span of evolving perspectives, which will enable a deeper understandings of the phenomena and a better explanation of occurrences in the a field by pointing out potential pathways leading to them.
 
7
The Heckscher-Ohlin trade model of international trade was developed by Eli Heckscher and Bertil Ohlin at the Stockholm School of Economics.
 
9
Etemad (2004) has argued that the field of IE experienced a re-emergence as it had been active long before, going back to before the common era and possibly to pre-historic times.
 
10
The exploration, evaluation and exploitation of opportunity(ies) are the basic three “e” of entrepreneurship.
 
11
As the satellite-based GPS system is more accurate and more informative than a simple magnetic compass, a higher echelon perspective is also likely to be more effective than a simple perspective. However, we avoided the latter in favour of its simplicity and common familiarity with a simple compass.
 
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Metadata
Title
Perspective on early internationalizing firms: Three decades of international entrepreneurship developments
Author
Hamid Etemad
Publication date
01-07-2022
Publisher
Springer US
Published in
Journal of International Entrepreneurship / Issue 2/2022
Print ISSN: 1570-7385
Electronic ISSN: 1573-7349
DOI
https://doi.org/10.1007/s10843-022-00319-w

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