A dynamic model of growth phases and survival in international business-to-business new ventures: The moderating effect of decision-making logic

•A dynamic model explaining the growth and survival of INVs was developed.•The model explains the growth phases through which INVs pass as they mature.•It covers the rapid advancement, survival crises, retrenchment, and decision-making logic.•The impact of opportunities, capabilities, entrepreneurial orientation, and learning on growth phases and survival is postulated.•A novel finding is that the decision-making logic moderates the impact of these factors.

The growth and survival of international new ventures (INVs) has not been the subject of extensive in-depth qualitative study and our understanding of their decision-making is deficient. On the basis of empirical analyses in a small and open economy, a dynamic model was developed that explains the growth phases through which INVs pass as they mature in the high-technology business-to-business field. The model also recognizes rapid advancement, survival crises, and retrenchment. Propositions were devised regarding the impact of opportunities, resources and capabilities, entrepreneurial orientation, and learning on growth phases and survival. A novel finding is that the decision-making logic moderates the impact of these factors. These findings have important implications for industrial marketing scholars and practitioners.