The effect of incubator participation in developed market direct entry by emerging market firms

Ebetuel Pallares-Venegas, University of Texas at El Paso

Abstract

Motivated by the increased resurgence of emerging markets, this dissertation draws from a milieu of academic disciplines and professional experiences to study a previously undocumented phenomenon. This study empirically measures the increase in emerging market firm (EMF) absorptive capacity obtained during their developed market entry by participating in incubators in the United States. This study lays out both a theoretical and an empirical model of product commercialization focusing on absorptive capacity and the moderating effect of incubator participation. The study employs a sample of high-technology firms from Mexico entering the United States during the time period from 2009 to 2011. The central question this study seeks to answer is: How does incubator participation make EMF developed market entry more successful? This study answers two additional questions: How does incubator participation increase EMFs absorptive capacity relevant to product commercialization? and How does the increase in such absorptive capacity (e.g., technological learning, market learning) lead to improved performance of developed market product commercialization success? While the hypotheses were not directly supported, this study showed that EMFs that participate in incubators are associated with higher economic performance as a result of developed market entry, and that EMFs that participate in incubators are associated with greater organizational learning. While causation was not demonstrated via significant regression results, other statistical tests support the general premises of both of my hypotheses. This study concludes by identifying areas for future research regarding the influence of absorptive capacity and social capital on emerging market firm developed market entry. ^

Subject Area

Business Administration, General|Business Administration, Management|Economics, General

Recommended Citation

Ebetuel Pallares-Venegas, "The effect of incubator participation in developed market direct entry by emerging market firms" (January 1, 2012). ETD Collection for University of Texas, El Paso. Paper AAI3512744.
http://digitalcommons.utep.edu/dissertations/AAI3512744

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