A conceptualization of e-risk perceptions and the offline-online risk trade-off for small firm internationalization

Pezderka, N. and Sinkovics, R. R. (2010) A conceptualization of e-risk perceptions and the offline-online risk trade-off for small firm internationalization. In: Dimitratos, P. and Jones, M. V. (eds.) Resources, Efficiency and Globalization. Series: The Academy of International Business, 17. Palgrave MacMillan: Basingstoke, pp. 233-246. ISBN 9781349314607 (doi: 10.1057/9780230278028_13)

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With growing competitive pressures, companies are increasingly deploying the Internet (Porter, 2001) as strategic option of performance enhancement. With the Internet representing a potentially fluid and boundary-less medium (Lim et al. 2004), this deployment takes place not only in domestic but also in international markets. The adoption of the Internet appears to be particularly important for smaller firms. They are naturally poorer in terms of resource-en-dowment than large MNEs (Welsh and White, 1981) and the Internet promises a fast-track and time-compressed option for international expansion (Sinkovics and Penz, 2005; Yamin and Sinkovics, 2006). However, as international business deals with a multitude of contingencies in its environment progressive expansion comes at a price and is increasingly risky (Shrader, Oviatt, and Phillips McDougall, 2000). Internet reliance and the deployment of information and communication technologies (ICT) may implicate ‘ambiguous’ effects (Jean, 2007). The virtual analogue to traditional physical exchange is not risk-free but exposes firms to an array of related risks (Scott, 2004; Viehland, 2001; Wat, Ngai, and Cheng, 2005). While some of these risks are only relevant in the online context, others have their origins in the traditional international business environment. Even though many risks belonging to the latter category are deemed less relevant for companies predominantly doing business in cyberspace, they need to be carefully examined as they might still affect these companies in a different and/or in a less visible way.

Item Type:Book Sections
Glasgow Author(s) Enlighten ID:Sinkovics, Professor Rudolf and Sinkovics, Dr Noemi
Authors: Pezderka, N., and Sinkovics, R. R.
College/School:College of Social Sciences > Adam Smith Business School > Management
Publisher:Palgrave MacMillan
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