International entrepreneurial orientation and regional expansion

Abstract

This study examines how behavioral elements of international entrepreneurial orientation (i.e. product innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy) increase variability in scope of regional market expansion, and the international marketing channel management conditions under which this occurs. Results from an empirical study in a developing market show that not all behavioral elements of international entrepreneurial orientation (IEO) increase scope of regional expansion. The study specifically finds that scope of regional expansion is fostered when high levels of product innovation intensity, risk-taking, competitive aggressiveness, and autonomous behaviors are aligned with a stronger channel management capability. Conversely, the regional expansion values of product innovation novelty and proactiveness are cancelled out when channel management capability levels are high.

Keywords:

• Regional expansion
• international scope
• international entrepreneurial-oriented behaviors
• channel management capability
• Sub-Sahara Africa

Notes

1. Note that because we showed that the bias factor covariance matrix was not significantly different from the covariance matrix without the bias factor, we proceeded to estimate the structural model using the normal covariance matrix as input data.