Developing a Social Network as a Means of Obtaining Entrepreneurial Knowledge Needed for Internationalization

Abstract

An internationalization process for startups is based on the exchange of knowledge and other resources required for early internationalization and fast growth, and it requires ventures to identify opportunities, conduct business, and gain a competitive advantage in a foreign market. But, how do entrepreneurs obtain the knowledge required for internationalization? Previous research suggests a role for the utilization of social networks, leading managers to ask three basic questions: i) what kinds of knowledge-based resources are urgently needed by international new ventures?, ii) how do needs for knowledge change according to different stages in the internationalization process?, and iii) how can changing needs for knowledge be met by developing and leveraging a social network? In this article, we review the related literature, discuss potential answers to these basic questions, and we suggest how a dynamic process can guide new ventures to acquire knowledge for developing resources and conducting business toward internationalization.