P.O. BOX 4600, University of Oulu tel. (08) , fax (08) International Entrepreneurial Selling – Entrepreneurs’ Narratives on International Sales Negotiations Global Sales Science Institute 8th Annual Conference June 11, 2014 Irene Lehto Ph.D. Candidate, Oulu Business School

Introduction Increasing practical importance of international sales Need for more research output Particularly small firms struggle with international sales Research gap: new firm and entrepreneurial perspective on international sales Growing focus on entrepreneurial sales behaviour of professional salespeople Individual-centred, role of context not elaborated P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

P.O. BOX 4600, University of Oulu, FINLAND tel , fax Research Question and Objective How do entrepreneurs make sense of international entrepreneurial selling? Empirical approach: international sales negotiations, early internationalising firms, 3 narratives → Elaborates on the concept of international entrepreneurial selling → Individuals’ reflections on socially constructed reality analysed

Theoretical Basis: Entrepreneurial Selling Sales - Rather consistent environment - Continuous market conditions - Clear customer needs Entrepreneurship - Volatile environment - Changing market conditions -Unclear customer needs P.O. BOX 4600, University of Oulu tel. (08) , fax (08) Entrepreneurial Selling Process-based market-driven risk-seeking proactive

Entrepreneurial marketing (and sales) ”the proactive identification and exploitation of opportunities for acquiring and retaining profitable customers through innovative approaches to risk management, resource leveraging and value creation” (Morris, Schindehutte and LaForge 2002, p. 5) P.O. BOX 4600, University of Oulu tel. (08) , fax (08) Theoretical Basis: Entrepreneurial Selling

International entrepreneurship (IE): “the creative enactment and envisioning of future scenarios and opportunities for service/product/ organizational transformation that are socially constructed and realized through joint cross border co-ordinations” (Fletcher 2004, p. 296) International opportunity (IO) in IE: “a situation that both spans and integrates elements from multiple national contexts in which entrepreneurial action and interaction transform the manifestations of economic activity” (Mainela, Puhakka and Servais 2014, p. 16) P.O. BOX 4600, University of Oulu tel. (08) , fax (08) Theoretical Basis: International Entrepreneurship

Theoretical Basis: International Entrepreneurship and Sales Negotiations International Selling in Negotiations - process to reach an agreement on economic exchange interaction - problem/option/ needs/solution- focused International Entrepreneurship (IE) - discovery, construction, enactment, evaluation and exploitation of international opportunities - creation of future goods and services P.O. BOX 4600, University of Oulu tel. (08) , fax (08) International Entrepreneurial Selling Contextual diversity, process-based, opportunity- focused

Theoretical Basis: International Entrepreneurial Selling Based on definitions of entrepreneurial selling, social constructionist approach to IE, and definition of international opportunity in IE… international entrepreneurial selling: joint envisioning, construction and enactment of international opportunities in situations that span and integrate elements from several national contexts and in which the interaction aims at economic transaction through creative approaches to risk management, resource leveraging and value creation P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

Methodology Purposive sampling: entrepreneurs doing international B2B selling within 3 years of firm inception Nordic country; active start-up ecosystem, small domestic market → growth through internationalisation Diversity of perspectives: stories from different backgrounds and situations Narrative approach to data collection and analysis With narratives entrepreneurs construct and make sense of their experiences, explain their actions and thinking, and build on holistic descriptions and causal pathways between relevant events, actors and the context P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

Data – Backgrounds of the Stories P.O. BOX 4600, University of Oulu tel. (08) , fax (08) Entrepreneur AEntrepreneur BEntrepreneur C EducationITMarketingNatural sciences + marketing Prior experience - 18y in MNC - Many tasks but not sales - Vast international experience -10y in MNC - Many tasks but not sales - Vast international experience - Researcher (continuing) - International experience but no sales experience Start-up- Own venture established Nov Software development - New venture started in Aug Wellbeing service platform - Joined start-up in summer Medical research and development International sales - Entry to UK initiated in Local agents and own sales rep - Entry to USA initiated in Help from local consultant - Sales in Europe and USA - Expansion to USA/Asia planned

Findings P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

Conclusions Contribution to international sales literature by depicting international entrepreneurial selling from the perspective of entrepreneurs (narrative method!) Very different from professional selling Focus: interaction and joint action, i.e. social construction of IO, for early validation and revenue Emphasis on efficacy and expertise to envision and enact IOs with customers Innovativeness, flexibility and speed expected, and enabled by lack of hierarchy and expertise Crucial role of local support in early stages of negotiations P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

Limitations and Future Research Generalisation is not reached, nor intended Longitudinal data needed for process-based analysis Restricted to the specific context of international sales negotiations How are other types of international sales tasks and processes constructed by entrepreneurs? Only three stories → there is a lot more to discover How do different kinds of entrepreneurs in different types of contexts reflect on international selling? Future research needed on the ways IOs are envisioned and enacted in the customer interface P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

Thank you for your attention! Any comments and suggestions are welcome! P.O. BOX 4600, University of Oulu tel. (08) , fax (08)

References Fletcher, Denise E. (2004) “International entrepreneurship and the small business,” Entrepreneurship and Regional Development, 16 (4), 289– 305. Mainela, Tuija, Vesa Puhakka, and Per Servais (2014) “The Concept of International Opportunity in International Entrepreneurship: A Review and a Research Agenda,” International Journal of Management Reviews, 16 (1), 105–129. Morris, Michael H., Minet Schindehutte, and Raymond W. LaForge (2002), “Entrepreneurial Marketing: A Construct for Integrating Emerging Entrepreneurship and Marketing Perspectives,” Journal of Marketing Theory and Practice, 10 (4), 1–19. Further references can be requested from the author. P.O. BOX 4600, University of Oulu tel. (08) , fax (08)