On-ramp or speed bump? How boards influence the internationalisation of international new ventures

This article aims to explore how the boards of international new ventures (INVs) develop throughout the internationalisation and growth phases of the firm. Specifically, the study explores how the nature and extent of the board’s role changes over time in facilitating the INV’s knowledge and network acquisition. We draw on qualitative data, including 18 interviews with INVs and three interviews with experts on New Zealand’s high-technology sector. The data analysis yielded four main patterns. INVs that relied on an informal board during the initial market entry phase remained flexible in exploring multiple markets before transitioning to a formal board (Pattern 1). INVs that established a formal board during the initial market entry phase achieved accelerated internationalisation only when the board remained flexible (Pattern 2a). Where the formal board did not remain flexible, they became a ‘speed bump’ in the post-entry phase growth process, unless the management team could counter-balance this deceleration effect with bringing in informal board members (Pattern 2b). The findings suggest that the absence of a formal board also reduces internationalisation speed if the founder does not have the discipline to follow through with the exploitation of the perceived opportunities (Pattern 3).