Local bridging ties and new venture internationalization: exploratory studies in Bangalore and Cambridge

The research question addressed here is: How does the nature of local embeddedness of network relationships influence new venture internationalization? The authors distinguish between the spatial embeddedness of ties as dispersed or concentrated. They explore the differential effects of local bridging tie embeddedness on new venture internationalization, based on a case study pertaining to each spatial embeddedness type. The cases concern a Bangalore (India) start-up engaged in spatially dispersed joint activity with Microsoft India, within the Bangalore software cluster; and a Cambridge (UK) venture with spatially concentrated links to a local venture capital (VC) firm, located within the Cambridge electronics cluster. The authors posit that the spatial embeddedness of local ties could have differential effects on the internationalization of new ventures in terms of: (1) differing trajectories of opportunity creation; (2) distinct knowledge-bases that are accessed; and (3) varying potential constraining effects. An implication is the utility of a holistic approach whereby internationalizing new ventures cultivate and utilize both forms of network relationships. Future research directions highlighted include the development of organizational capabilities by international new ventures (INVs) through interacting with local bridging ties such as multinational corporation (MNC) subsidiaries and VC firms; and the influence of local bridging ties on internationalization routines.