receptor Sigma- receptor

Non-sequential stage firms have various uniqueness that differentiate them from sequential stage firms. The most obvious difference is the capabilities of their founders and owners who acquire international knowledge through their personal prior experience (McDougall et al., 1994). This allows the combination of their knowledge gained and resources available from various foreign markets. Knight (2000) contends that entrepreneurial approach of firms is a crucial factor for creating opportunities to internationalize. Clearly, founder and manager are more likely to have large amount of international experiential knowledge (Harbison et al., 2000; & Nummela et al., 2004) as well as international vision since the beginning of the firm establishment (Andersson &

Wictor, 2003; & Sapienza et al., 2004).

The entrepreneur attitudes toward internationalization play an important role in determining whether a firm will pursue sequential or non-sequential stage. Mort and Weerawardena (2006) cites the attitudes of non-sequential stage entrepreneur as having global mindset, proactive, innovative, and risk taking. In essence, the internationalization process is triggered by an owner or manager who plays a role as entrepreneur (Andersson, 2000). Further, Andersson (2000), Bilkey and Tesar (1977),

Boddewyn (1983) argue that a firm with almost perfect resources and opportunities will not present in the foreign market if entrepreneur does not initiate it. Hence, the effort, skill, and knowledge of an owner or manager in the firm may affect the acceleration of internationalization process (Jones, 1999).

There are many studies show that the previous management know how affects internationalization process of a firm. Bilkey (1978) and Reid (1981) for instance, reveal that the personality of manager influences the initiation to expand business overseas. In particular, the non-sequential entrepreneurs have propensity to own considerable foreign experience (Bloodgood et al., 1996; & Madsen & Servais, 1997).

They also possess a desire to internationalize at the beginning of firm establishment (McDougall, 1995, Harveston et al., 2000). As opposed to sequential stage, non-sequential stage managers always begin with substantial experiential knowledge in business operation within several foreign markets. Thus, it enhances the chance to tap new markets and results in acceleration of internationalization process in various marketplaces. The managers with this attitude toward business expansion are advantageous in building competitive edge and adding value before the initial stage of internationalization process (Knight & Cavusgil, 2004; & Zahra, 2005).

A few studies on non-sequential stage highlight the experience of managers who are familiar in operating international business. Oviatt and McDougall (1995) discover that the non-sequential stage entrepreneurs have good communication skills in relation to the firm‟s investment in international market. The distinctions between sequential and non-sequential model of internationalization process can be determined by the affects of entrepreneur‟s education level, overseas staying, and job knowledge (Madsen &

Servais, 1997). These factors lower the psychic distance to certain foreign countries and

reduce risk and uncertainty. Chetty and Campbell-Hunt (2004) and Andersson et al.

(2004) reveal that today‟s entrepreneurs are well-educated and possess foreign knowledge as compared to sequential stage model when it was formulated in 1977.

According to the research conducted by Knight and Cavusgil (1996) in non-sequential stage, entrepreneurs usually have built unique entrepreneurial competence which is able to capture the business opportunities abroad. Therefore, non-sequential stage is always developed by founders who have previous foreign knowledge and wide business networking system abroad (Madsen & Servais, 1997).

Entrepreneur who possesses more foreign knowledge is always related to the capabilities to invest in American market (Bloodgood et al., 1996). On the other hand, the senior entrepreneur who acquires more resources, information and business network, and experience may become exporters (Westhead et at., 2001). A few firms which employ manager who gains international experience during his tenure in other firms, have successfully helping his current firms to penetrate foreign markets (Karlsen, 2007).

To be non-sequential stage firms, entrepreneur‟s international experience and knowledge, in addition to his international networking is critical (Rasmussen &

Madsen, 2002). The study of non-sequential firms must be done even before the firms are established since the characteristic of entrepreneur such as international experience is the factor that triggers internationalization process (Madsen & Servais, 1997)

The experience of managers gives advantage for firms to make foreign market penetration possible (Knight & Cavusgil, 2004). Knowledge gained through their personal experience enables the firms to operate their overseas subsidiaries

successfully. This is due to the information related to foreign markets is available from their managers (Autio et al., 2000). Knight and Cavusgil (2004) point out that substantial amount of small and new firms are operating their businesses locally and still have less desire to set up their subsidiaries in foreign markets as a result of the information barrier of foreign markets. Despite the influence of technology and global economy, this is not the only reason that explains the non-sequential stage. Firms which own certain experience and knowledge based on the resources available, provide speed of foreign market entry and eventually remain competitive. Non-sequential stage firms are successful in the international market because they are still new and small which is more efficient in adapting to changes.

However, according to Knight and Cavusgil (2004), the more crucial reason that explains the success story is their competency. They must possess innovative-focused managerial mindset that inspires the firms to take full advantage of entering foreign market, which creates superior and high technological products. These distinctive products eventually contribute to the non-sequential stage of expanding business overseas. In addition, innovative-based strategy allows for better business operation owing to understanding of consumers and product customization and innovation. This strategy leads to careful handling of important strategic marketing plan in order to aim at international consumers who may demand for high technological and distinctive products.

In the study done by Freeman and Cavusgil (2007) on non-sequential stage, they discover that there are four types of entrepreneur differentiated by their attitude toward foreign market entry. For the first two entrepreneurs, „responder‟ and „opportunist”, they are the owner who operates their business locally and have no plan to expand

overseas or developing international supply chains. However, they are more viable and optimistic. For „experimentalist‟, he is entrepreneur with proactive character which is innovative but collaborative and complementary with his rivals, suppliers, and consumers. He adopts particular foreign approach to deal with international consumers and suppliers. Lastly, „strategist‟ is entrepreneur who is more experience and knowledgeable, high technological, and prefer creating steady liaison with international suppliers and consumers.