The role of network relationships and social capital in early and later foreign market entries of high technology INVs

Social capital and its dynamic nature can offer plausible explanations to the rapid internationalization of International New Ventures (INVs). This paper tries to shed light on the impact of the three roles of social capital, efficacy role, serendipity role and liability role on international market entries of nine Scottish and Greek high technology INVs. We observed that the efficacious role of social capital occurred more times in both early and later foreign market entries. The liability role had a very limited effect on internationalization. The serendipity role played an important role in countries with high psychic distance.