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Article summary:

1. New venture firms are increasingly expanding internationally early in their life cycles.

2. The study examines the effects of international expansion on a firm's technological learning and financial performance.

3. Little is known about how these firms use the technological learning gained through internationalization.

Article analysis:

The article titled "International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technological Learning, and Performance" published in the Academy of Management Journal provides insights into the effects of international expansion on new venture firms' technological learning and financial performance. The study's primary focus is to examine how new ventures use technological knowledge gained through internationalization.

The article presents a well-structured abstract that outlines the research's objectives and methodology. However, it lacks a clear statement of the research question or hypothesis. The article's introduction provides a brief overview of previous studies on new venture firms' internationalization but fails to provide a comprehensive literature review. This omission may limit readers' understanding of the research context and potential biases.

The article's methodology section describes the data collection process and analytical techniques used to test the research hypotheses. The authors used secondary data from 1,005 new venture firms in the United States between 1996 and 2005. They employed regression analysis to test their hypotheses.

One potential bias in this study is that it only focuses on US-based new venture firms, limiting its generalizability to other countries or regions. Additionally, the study does not consider cultural differences or institutional factors that may affect new ventures' internationalization strategies.

The results show that international diversity positively affects a firm's technological learning, which subsequently improves its financial performance. However, mode of market entry did not have a significant effect on technological learning or financial performance. The authors suggest that new ventures should prioritize international diversity over mode of market entry when expanding internationally.

While the study provides valuable insights into how new ventures can benefit from international expansion, it has some limitations. For instance, it does not explore potential risks associated with early internationalization for new ventures such as cultural barriers or regulatory challenges.

In conclusion, this article contributes to our understanding of how new venture firms can leverage technological learning gained through internationalization to improve their financial performance. However, the study's limitations and potential biases should be considered when interpreting its findings. Future research should explore the impact of cultural differences and institutional factors on new ventures' internationalization strategies.