The Emergence of an International New Software Venture from an Emerging Economy

This study is positioned at the intersection of legitimation and international entrepreneurship theories. It is a longitudinal ethnographic case study that explores the process of emergence of an international new software venture from an emerging economy and the effect this venture has on the process of industry creation in that economy. Data were collected over a two year period, 2010-2011, via in-depth interviews, observations, and unobtrusive data. Data analysis reveals three different contexts in which legitimation took place: legitimation of the new venture domestically and internationally, and legitimation of the new industry. To acquire cognitive legitimacy and sociopolitical legitimacy and successfully internationalize, an international new venture needs to design a robust business model targeting both internal and external stakeholders, engage in persuasive argumentation invoking familiar cues and scripts, promote and defend incentives and operating mechanisms in political negotiations, and overcome the country-of-origin effect by pursuing a technology legitimation strategy.