Internationalizing can appear as a gargantuan task for resource-constrained new ventures. The capacity of entrepreneurs to overcome situations of resource challenges by using bricolage – creatively using resources at hand – is well documented in the new venture internationalization literature. However, the full impact of bricolage on new venture internationalization remains less understood. In our study “Innovative yet costly: the dual role of bricolage in new venture internationalization,” published in the Journal of Business Venturing Insights, we investigate how bricolage can help and hinder new venture internationalization. We find that bricolage has a double-edged sword effect on new venture internationalization: it fuels innovation and aspirations to internationalize, leading to international success, but also increases operating costs in the short term. Moreover, we show that over a longer time horizon, only the positive effect remains.

The bright side of bricolage

Our research suggests that bricolage positively influences new venture internationalization by enhancing firm innovativeness and fostering global aspirations. By creatively combining nonstandard inputs and repurposing existing resources, entrepreneurs can uncover and exploit opportunities that might be missed through traditional resource acquisition methods. This approach not only leads to the development of unique products but also bolsters the entrepreneur’s aspirations to expand internationally. The process of bricolage can help nurture creativity and opportunity recognition, which in turn propels new ventures to leverage international opportunities.

The dark side of bricolage

While bricolage can enhance internationalization, it can also hinder it by leading to higher operational costs. These costs can arise from inefficiencies, incomplete solutions, and the slow development of products that may only cater to a narrow customer base. The reliance on limited resources and improvisation can result in suboptimal outcomes that increase costs and constrain growth abroad. Part of the challenge is that improvisational learning focuses on immediate opportunities rather than developing generalizable knowledge, requiring solutions to be reworked. These increased costs and inefficiencies can reduce internationalization, especially since successful global expansion often requires combining bricolage with strategic resource acquisition.

The long-term perspective

Our findings indicate that the negative effects of bricolage on new venture internationalization are primarily short-term. As new ventures mature, they refine their processes and improve operational efficiency. Over time, the initial costs associated with bricolage diminish, while the positive effects—such as enhanced innovativeness and aspirations for internationalization—become more prominent. Although bricolage might slow down internationalization initially, it proves to be a valuable approach in the long run. Internationalizing entrepreneurs should not be deterred by the early costs and inefficiencies of bricolage, as these challenges are temporary, and the long-term benefits outweigh the short-term drawbacks.

Implications for entrepreneurs and policymakers

This study offers valuable insights into how resource-constrained entrepreneurs can successfully navigate internationalization. While bricolage may lead to short-term financial strain, its long-term benefits for innovation and expansion abroad are substantial. Entrepreneurs can leverage bricolage by embracing innovativeness and effectively using the resources at hand to support their expansion into foreign markets. However, it is crucial for entrepreneurs to be aware of the short-term cost implications of bricolage and to take steps to mitigate potential negative effects. Supporting startups in their early internationalization efforts—through financial assistance, cost management guidance, and policies that encourage innovation—could be key to enabling more new ventures to thrive in international markets.

Furthermore, entrepreneurs relying on bricolage must maintain a long-term perspective. While the short-term costs may be burdensome, these challenges tend to diminish over time, allowing the positive effects of bricolage to create sustained benefits. By thoughtfully applying bricolage, entrepreneurs can transform early-stage constraints into opportunities for international growth.

Read the full paper here to find out more: https://www.sciencedirect.com/science/article/pii/S2352673424000416

• Mail
• LinkedIn
• Bluesky

---

Author bios

Hana Milanov is a Professor of Entrepreneurship at TUM School of Management, Technical University of Munich. She studies how entrepreneurs mobilize resources and with what consequences, with an increasing focus on gender lens. She has received a number of awards for her research, teaching, and work with entrepreneurs. 

Stephanie A. Fernhaber is a Professor of Entrepreneurship and Innovation in the Lacy School of Business at Butler University (USA). Her research interests include international entrepreneurship, grassroots innovation, and societal grand challenges. 

Siri Terjesen is Professor and Associate Dean of the College of Business at Florida Atlantic University (USA). Her research is at the intersection of entrepreneurship, corporate governance, and public policy.

Stefan Ruehl is a PhD candidate at the Department of Strategy and Innovation at the Copenhagen Business School. Previously affiliated with TUM School of Management at Technical University of Munich, his research interests include entrepreneurship, venture capital, and organisational economics.