New venture resources, international entrepreneurial capability and performance of Malaysian Halal international new ventures

Abstract

In globalisation of business, International Entrepreneurial Capability (IEC) has become an essential requirement for internationalisation and competition of firms in global markets. Globalisation has created a new and dynamic world economy and the International New Ventures (INVs) phenomenon. However, there is little knowledge about its significant role in International Performance (IP), while the literature depicts a few investigations in new venture resources and IP from the perspective of IEC. Hence, the general objective of the study is to examine and identify the relationship between new venture resources and IP through IEC. The research questions of this study are in line of determining whether the associations between new venture resources and IP are significant through the IEC. This study adopts a mixed method through sequential explanatory design in order to answer the research questions.The sampling design in quantitative used probability approach which involves simple random sampling, while the qualitative part utilised non-probability by purposeful approach. Samples of 220 respondents from companies of Halal Malaysian INVs have been selected as sample. The data were analysed by Structural Equation Modeling (SEM) with AMOS (ver.16.0) and SPSS software. It can be concluded that, Technological Knowledge (TK) and Managerial Knowledge (MK) as new venture resources directly influencing IP. Managers should be concerned with the quality of procedures using TK and MK by choosing the necessary strategies. Accordingly, Malaysian Halal INVs are predicted to find better opportunities and ways to improve their IPs. In this vein, IP has been affected by International Marketing Capability (IMC), Innovation and Risk-taking Capability (IRC), and new venture resources (TK and MK), while International Networking Capability (INC) has not provided the mediation role in the relationship between new venture resources and IP. In addition, the qualitative results of the study confirm the majority of outcomes in quantitative phase of the study. By considering the results of this research, the researcher believes that managers of INVs should pay more precise attention to the significant role of IEC in the relationship between new venture resources and international performance, because of productive presence in the global markets.