Export oriented entrepreneurship
One of the ways for organizations to respond in response to rapid environmental changes is to create entrepreneurial organizations and have an entrepreneurial orientation (risk tolerance, innovation, pioneering, independence and aggressive competition) in the organization. Because it will cause productivity of the organization and innovation in products. Therefore, even in entering challenging foreign and international markets, it is a suitable response method.
Abe and Yang define entrepreneurial export as a process that their own people, alone or within the organization, recognize the opportunities in the foreign market according to the resources and environmental factors that affect them. In fact, they pay attention to entrepreneurial exporters who start exporting.
The question is, are there different levels of entrepreneurship among companies that have just started exporting?
To answer this question, Abe later adds that export entrepreneurs are those who are very active and aggressive in seeking export opportunities regarding product-market innovation. This definition creates a discussion in the field of entrepreneurial export, which creates three vital elements in the literature of entrepreneurial export: speed, intensity and scope.
speed
The time it takes for the company to start exporting, so the companies that start exporting earlier are more entrepreneurial and have an international orientation. For this reason, the speed of entering international markets can be considered as a key to determine the entrepreneurial orientation of the exporter. Acedo and Jones in 2007 state that entrepreneurial companies usually start export activities after 6 years. This criterion makes the difference between globalized companies (companies that start exporting in the first 5 years of operation) and traditional companies and exporters (companies that start exporting after 5 years). So that traditional exporters have less tendency to export compared to international companies.
area
It shows the number of foreign markets that export companies earn from. Of course, it is more commonly known as export development or diversification. It is difficult to measure the scope for showing entrepreneurial behavior. Ruzo states that at least ten countries are necessary to distinguish between a company that tends to concentrate the market and a company that tends to diversify the market. In addition, the more a company tends to diversify, the more entrepreneurial behavior it will have.
intensity
Export intensity determines the company’s willingness to operate in foreign markets compared to domestic markets. This factor is obtained by the ratio of export sales to total sales. Of course, there is no agreement in the literature about what ratio is necessary to evaluate the entrepreneurial orientation of the exporter. Although some experts say that the ratio of 20% is appropriate.
Therefore, export-oriented entrepreneurship or export-oriented entrepreneurship is one of the forms of internationalization that includes the good of the world and the future. It helps the competitiveness and profitability of the organization and plays a prominent role in the economic development of the country and prosperity in the international arena.
Sincere
@startup_30T
This post is written by Rimaazz1