Entrepreneurship Goes Global
Critical Analysis of ‘Entrepreneurship goes Global’
The article “Entrepreneurship goes global” by Neri Karra and Nelson Phillips presents a new type of company emerging in the 21st century, namely entrepreneurships, which have at least 25 percent of their sales in foreign markets and do not concentrate on the domestic market where they have been founded. These entrepreneurships according to the authors of the article are different from their ‘old school’ counterparts by expanding globally from day one and taking the challenge of competing in an internationally dynamic environment. First reading the article one can become overwhelmed by the courage of those entrepreneurs who decided to operate globally and achieve a huge success on the market. However, looking at this piece of writing from a more critical point of view, the reader can observe several explicit and implicit assumptions the authors make on which they build their arguments why global entrepreneurships succeed. Furthermore, there are a number of biases that need to be discussed, which in my opinion undermine the reliability of the paper. Hebbert (1998) lists factors like “increasing integration of the productive process, […] lowering or removal of institutional barriers to international trade and the flow of capital, […] technological advance and communication which has considerably lowered the cost of going global” as the driving factor for entrepreneurships going global. Another example for identifying the driving factors of internationalization comes from the article of Lewitt (1983) ‘Globalization of Markets’ arguing that the main driving force for going global lies in technology, which triggers a chain reaction of better communication flow, transportation and reduced world prices. Moving now to our article of ‘Entrepreneurship goes Global’ (2004) listing changing market factors, technological innovations, lower communication and transportation costs and the importance of alliances as
The article “Entrepreneurship goes global” by Neri Karra and Nelson Phillips presents a new type of company emerging in the 21st century, namely entrepreneurships, which have at least 25 percent of their sales in foreign markets and do not concentrate on the domestic market where they have been founded. These entrepreneurships according to the authors of the article are different from their ‘old school’ counterparts by expanding globally from day one and taking the challenge of competing in an internationally dynamic environment. First reading the article one can become overwhelmed by the courage of those entrepreneurs who decided to operate globally and achieve a huge success on the market. However, looking at this piece of writing from a more critical point of view, the reader can observe several explicit and implicit assumptions the authors make on which they build their arguments why global entrepreneurships succeed. Furthermore, there are a number of biases that need to be discussed, which in my opinion undermine the reliability of the paper. Hebbert (1998) lists factors like “increasing integration of the productive process, […] lowering or removal of institutional barriers to international trade and the flow of capital, […] technological advance and communication which has considerably lowered the cost of going global” as the driving factor for entrepreneurships going global. Another example for identifying the driving factors of internationalization comes from the article of Lewitt (1983) ‘Globalization of Markets’ arguing that the main driving force for going global lies in technology, which triggers a chain reaction of better communication flow, transportation and reduced world prices. Moving now to our article of ‘Entrepreneurship goes Global’ (2004) listing changing market factors, technological innovations, lower communication and transportation costs and the importance of alliances as