1. ¹Iowa State University, Ames, USA
2. ²Mays Business School, Texas A&M University, College Station, USA
3. ³Kelley School of Business, Indiana University, Bloomington, USA

Correspondence: BA Gilbert, Mays Business School, Texas A&M University, 420 Wehner Building, 4221 TAMU, College Station, TX 77843-4221, USA. Tel: +1 979 845 4892; Fax: +1 979 845 9641; E-mail: bagilbert@mays.tamu.edu

Received 10 June 2003; Revised 28 December 2005; Accepted 24 April 2007; Published online 6 December 2007.

Abstract

In this paper, we argue that geographic location may be one reason why some ventures are able to acquire the resources needed to internationalize while others cannot. We use ecological arguments to predict an inverted U-shaped relationship between the concentration of industry clustering within a geographic location and the venture's internationalization. We also explore whether venture characteristics influence the nature of this relationship. Our hypotheses are regressed on international intensity and scope, and analyzed through a sample of 156 publicly held new ventures. Results confirm that location influences new venture internationalization, and firm characteristics impact the nature of the relationship.