International Entrepreneurial Selling Entrepreneurs Narratives on International Sales

International Entrepreneurial Selling – Entrepreneurs’ Narratives on International Sales Negotiations Global Sales Science Institute 8 th Annual Conference June 11, 2014 Irene Lehto Ph. D. Candidate, Oulu Business School irene. lehto@oulu. fi P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Introduction • • Increasing practical importance of international sales • Need for more research output Particularly small firms struggle with international sales • Research gap: new firm and entrepreneurial perspective on international sales • Growing focus on entrepreneurial sales behaviour of professional salespeople • Individual-centred, role of context not elaborated P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Research Question and Objective • How do entrepreneurs make sense of international entrepreneurial selling? • Empirical approach: international sales negotiations, early internationalising firms, 3 narratives → Elaborates on the concept of international entrepreneurial selling → Individuals’ reflections on socially constructed reality analysed P. O. BOX 4600, 90014 University of Oulu, FINLAND • tel. +358 294 480 000, fax +358 8 553 2906 • www. oulubusinessschool. fi

Theoretical Basis: Entrepreneurial Selling Sales - Rather consistent environment - Continuous market conditions - Clear customer needs Entrepreneurship Entrepreneurial Selling Process-based market-driven risk-seeking proactive - Volatile environment - Changing market conditions -Unclear customer needs P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Theoretical Basis: Entrepreneurial Selling • Entrepreneurial marketing (and sales) ”the proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation” (Morris, Schindehutte and La. Forge 2002, p. 5) P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Theoretical Basis: International Entrepreneurship • International entrepreneurship (IE): “the creative enactment and envisioning of future scenarios and opportunities for service/product/ organizational transformation that are socially constructed and realized through joint cross border co-ordinations” (Fletcher 2004, p. 296) • International opportunity (IO) in IE: “a situation that both spans and integrates elements from multiple national contexts in which entrepreneurial action and interaction transform the manifestations of economic activity” (Mainela, Puhakka and Servais 2014, p. 16) P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Theoretical Basis: International Entrepreneurship and Sales Negotiations International Selling in Negotiations - process to reach an agreement on economic exchange interaction - problem/option/ needs/solutionfocused International Entrepreneurial Selling Contextual diversity, process-based, opportunityfocused International Entrepreneurship (IE) - discovery, construction, enactment, evaluation and exploitation of international opportunities - creation of future goods and services P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Theoretical Basis: International Entrepreneurial Selling • Based on definitions of entrepreneurial selling, social constructionist approach to IE, and definition of international opportunity in IE… • international entrepreneurial selling: joint envisioning, construction and enactment of international opportunities in situations that span and integrate elements from several national contexts and in which the interaction aims at economic transaction through creative approaches to risk management, resource leveraging and value creation P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Methodology • • • Purposive sampling: entrepreneurs doing international B 2 B selling within 3 years of firm inception • Finland; active start-up ecosystem, small domestic market → growth through internationalisation Diversity of perspectives: stories from different backgrounds and situations Narrative approach to data collection and analysis • With narratives entrepreneurs construct and make sense of their experiences, explain their actions and thinking, and build on holistic descriptions and causal pathways between relevant events, actors and the context P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Data – Backgrounds of the Stories Entrepreneur A Entrepreneur B Entrepreneur C Education BBA in IT M. Ed. , approbatur in marketing, sports trainer Ph. D in biochemistry, M. Sc. (marketing) Prior experience - 18 y in MNC - Many tasks but not sales - Vast international experience -10 y in MNC - Many tasks but not sales - Vast international experience - Researcher (continuing) - International experience but no sales experience Start-up - Own venture established Nov 2011 - Mobile marketing solutions - Spin-off started in Aug 2012 - Fitness and energy test - Joined start-up in summer 2011 - Contract laboratory services International sales - Entry to UK initiated in 2013 - Local agents and own sales rep - Entry to USA - Sales in Europe initiated in 2013 and USA - Help from local - Expansion to consultant USA/Asia planned P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Findings • International entrepreneurial selling as joint envisioning and realisation of IOs: • Aimed at understanding customers’ needs and (latent) problems for joint value creation and validation of offering • From early on verifying there is a demand, creating offering to match with context-specific needs, gaining international revenue • Challenge of getting customer to commit • References, word-of-mouth crucial • Risk (“do or die”), personal commitment • Revenues needed fast, no tolerance for unrealistic expectations P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Findings • • • Expectation of innovativeness and flexibility Entrepreneur as expert/consultant, passionate about the business • Knows how resources can be (re)configured • Credibility, trust Impact of liabilities of outsidership, foreignness, restricted resources, inexperience • Help of local representatives needed: market knowledge, contacts, language, sales experience • Where and when IOs envisioned: resources, personal relationships and experiences • Learning by doing: how to construct IOs, where and with whom P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Conclusions • Contribution to international sales literature by depicting international entrepreneurial selling from the perspective of entrepreneurs • Very different from professional selling • Focus: interaction and joint action, i. e. social construction of IO, for early validation and revenue • Emphasis on efficacy and expertise to envision and enact IOs with customers • Innovativeness, flexibility and speed expected, and enabled by lack of hierarchy and expertise • Crucial role of local support in early stages of negotiations P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Limitations and Future Research • • Generalisation is not reached, nor intended Restricted to the specific context of international sales negotiations • How are other types of international sales tasks and processes constructed by entrepreneurs? Only three stories → there is a lot more to discover • How do different kinds of entrepreneurs in different types of contexts reflect on international selling? Future research needed on the ways IOs are envisioned and enacted in the customer interface P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

Thank you for your attention! Any comments and suggestions are welcome! P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi

References Fletcher, Denise E. (2004) “International entrepreneurship and the small business, ” Entrepreneurship and Regional Development, 16 (4), 289– 305. Mainela, Tuija, Vesa Puhakka, and Per Servais (2014) “The Concept of International Opportunity in International Entrepreneurship: A Review and a Research Agenda, ” International Journal of Management Reviews, 16 (1), 105– 129. Morris, Michael H. , Minet Schindehutte, and Raymond W. La. Forge (2002), “Entrepreneurial Marketing: A Construct for Integrating Emerging Entrepreneurship and Marketing Perspectives, ” Journal of Marketing Theory and Practice, 10 (4), 1– 19. Further references can be requested from the author. P. O. BOX 4600, 90014 University of Oulu • tel. (08) 553 2905, fax (08) 553 2906 • www. oulubusinessschool. fi