Risk bias and the link between motivation and new venture post-entry international growth

We link research in international entrepreneurship and on behavioral decision making with the international business literature on firm degree of internationalization to advance an integrative model of new venture post-entry international growth. We test this model on a sample of 286 new ventures. Results demonstrate that the extent to which entrepreneurs perceive internationalization choices more or less risky than an objective standard (i.e. internationalization risk bias) leads to variations in international growth rates, in particular international scope. Further, we show that the decision-maker's motivation leads to differences in both internationalization risk bias and international scope.

► This study advances a cognitive model of new venture post-entry international growth.
► Entrepreneurs’ internationalization risk bias leads to different international growth rates.
► Entrepreneurial motivation alters perceptions of internationalization risks.
► Entrepreneurs’ internationalization risk bias is a mediator between motivation and post-entry international growth.