TY - JOUR
T1 - Beyond financial indicators
T2 - An assessment of the measurement of performance for international new ventures
AU - Gerschewski, Stephan
AU - Xiao, Simon Shufeng
N1 - Funding Information:
The authors would like to thank Editor-in-Chief Professor Pervez Ghauri and three anonymous reviewers for their constructive comments. Stephan Gerschewski appreciates financial support from Hannam University Research Fund. Simon Shufeng Xiao appreciates financial support from Hankuk University of Foreign Studies Research Fund.
Publisher Copyright:
© 2014 Elsevier Ltd.
PY - 2015/8
Y1 - 2015/8
N2 - This study examines the measurement of performance for international new ventures (INVs). While there is a growing area of literature on INVs that includes the internationalisation patterns, networks and entry strategies of these firms, there is generally a lack of research on how INVs measure their own performance. Using a sequential mixed methods approach of exploratory interviews and a survey sample of 310 firms from New Zealand and Australia, we find that INVs tend to be significantly more international performance oriented than non-INVs. Our study also indicates that financial performance measures are generally viewed as more important than operational indicators. In addition, we find that manufacturing INVs generally place more importance on financial performance than service INVs. The study offers two key contributions to the literature: (1) an integrated examination of international performance measures as used in practise by INVs, and (2) a comparative perspective between INVs and non-INVs in terms of performance measurement.
AB - This study examines the measurement of performance for international new ventures (INVs). While there is a growing area of literature on INVs that includes the internationalisation patterns, networks and entry strategies of these firms, there is generally a lack of research on how INVs measure their own performance. Using a sequential mixed methods approach of exploratory interviews and a survey sample of 310 firms from New Zealand and Australia, we find that INVs tend to be significantly more international performance oriented than non-INVs. Our study also indicates that financial performance measures are generally viewed as more important than operational indicators. In addition, we find that manufacturing INVs generally place more importance on financial performance than service INVs. The study offers two key contributions to the literature: (1) an integrated examination of international performance measures as used in practise by INVs, and (2) a comparative perspective between INVs and non-INVs in terms of performance measurement.
KW - Born global firm
KW - Financial performance
KW - International new venture
KW - International performance measurement
KW - Mixed methods
KW - Operational performance
KW - Organisational effectiveness
KW - Traditionally internationalising firm
UR - http://www.scopus.com/inward/record.url?scp=84929956878&partnerID=8YFLogxK
U2 - 10.1016/j.ibusrev.2014.11.003
DO - 10.1016/j.ibusrev.2014.11.003
M3 - Article
AN - SCOPUS:84929956878
SN - 0969-5931
VL - 24
SP - 615
EP - 629
JO - International Business Review
JF - International Business Review
IS - 4
ER -