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Erschienen in: Asia Pacific Journal of Management 3/2019

06.06.2019

The impact of Founder’s human capital on firms’ extent of early internationalisation: Evidence from a least-developed country

verfasst von: Farhad Uddin Ahmed, Louis Brennan

Erschienen in: Asia Pacific Journal of Management | Ausgabe 3/2019

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Abstract

This study addresses the impact of the principal founder’s general and specific human capital factors on the extent of the internationalisation of early internationalising firms originating from a relatively low-tech and labour-intensive industry in a least-developed country. We engage in quantitative analysis using data drawn from the Bangladeshi apparel industry. Our results reveal direct and indirect effects of specific human capital factors on the extent of a firm’s early internationalisation. However, contrary to the extant findings for developed and advanced-emerging economies, general human capital factors, namely the founder’s higher educational qualifications and international experience, are not found to be significant determinants of early internationalisation. Although human capital theory is used as a key theoretical framework, our study also draws on several other schools of thought, including the resource-based view, social networking theory and the learning perspective. The findings of our study provide evidence of the synergistic effects originating from the founder’s specific human capital factors. In particular, we find that resources, learning and social network ties derived from specific human capital factors influence the extent of a firm’s early internationalisation. Our findings are also consistent with the revisited Uppsala model in so far as they relate to the importance of knowledge and relationships prior to the establishment of focal firms. The implications of our findings for national and enterprise development policies are also considered.

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Fußnoten
1
a. General HC relates to broadly applicable knowledge acquired through both formal education and professional or own life experience (Colombo & Grilli, 2005; Cooper et al., 1994),
b. Specific HC incorporates knowledge which can be gained through either specialised education, or domain specific know-how derived from prior working experience in a particular industry, or prior entrepreneurial experience (Colombo & Grilli, 2005; Samuelsson & Davidsson, 2009).
 
2
Evangelista (2005) has shown that the founders’ education, previous industry, entrepreneurial and international experience are critical to the creation of international new ventures.
 
3
Based on their findings, Thai and Chong (2008) have concluded that the founder’s age, education, prior entrepreneurial experience, industrial and technical experience, and international experience were not influential in driving EIFs in Vietnam.
 
4
The UN categorises forty nine countries as least-developed nations because of their low gross national income (GNI) per capita, weak human assets and high degree of economic vulnerability (UNCTAD, 2010, 2013).
 
5
Since 1974, the global apparel industry has been regulated by the Multi-Fibre Arrangements (MFA) imposed by the US and Europe on large Asian apparel exporters (Rashid, 2006). However, apparel exporters from LDCs have enjoyed quota free access to these countries. The Bangladeshi apparel industry experienced significant growth due to the quota facilities provided by the developed countries under the MFA and to the tariff free access to EU countries under the Generalized System of Preferences (GSP) scheme (Rashid, 2006).
 
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Metadaten
Titel
The impact of Founder’s human capital on firms’ extent of early internationalisation: Evidence from a least-developed country
verfasst von
Farhad Uddin Ahmed
Louis Brennan
Publikationsdatum
06.06.2019
Verlag
Springer US
Erschienen in
Asia Pacific Journal of Management / Ausgabe 3/2019
Print ISSN: 0217-4561
Elektronische ISSN: 1572-9958
DOI
https://doi.org/10.1007/s10490-019-09646-4

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