Network level isomorphism, international experiential knowledge and network position in market entry mode choice – Longitudinal evidence from the German biotech industry

Conducting a longitudinal event history analysis our research aims to reveal new insights on the relevance of peer behavior, network embeddedness, and experience as determining factors of small and medium sized firms’ market entry mode choice. We contribute to the growing literature on international entrepreneurship and institutional theory by showing how isomorphism, firm level experiential knowledge, and network position impact and interact with regard to SMEs’ internationalization patterns. Thus, we extend prior research by going beyond investigating internationalization propensity and speed in general. Testing our hypotheses on the complete population of German biotechnology firms between 1996 and 2011, our findings indicate positive effects of network level isomorphism and positive but diminishing effects of experiential knowledge on SMEs’ market entry mode choice. Our findings furthermore reveal a negative impact of network centrality on the persistence of imitative tendencies