Capability Development, Learning and Growth in International Entrepreneurial Firms: Evidence from China

In recent years, there has been an upsurge in firms entering the international market at increasingly early age. The Organization for Economic Co-operation and Development (OECD) estimates that more than a quarter of the world's small manufacturing firms enter international markets within 10 years of their founding and derive a substantial percentage of their revenue from foreign sources (OECD, 1997). In addition, between 1 and 2% of small manufacturing firms are estimated to be international at inception – that is, within 2 years of their founding (OECD, 1997). Being new and proactively international at the same time, international entrepreneurial firms seem to contradict prevailing theories that see internationalization as a gradual process (McDougall, Shane, & Oviatt, 1994).