New Venture Exports: The Role of Perceived Competition and Entrepreneurial Competitive Optimism

Our study aims to understand new venture exports with a specific focus on the perception (i.e., perceived competition) and bias (i.e., entrepreneurial competitive optimism) of entrepreneurs. We conjecture that while new ventures will try to avoid perceived competition in the home country by going abroad, this may also depend on how optimistic the entrepreneurs are of their competitive position within the home country. Based on a survey dataset covering 26 transition economies, we find empirical results that corroborate our idea. Specifically, we show that new ventures facing increasing perceived competition in the home country increase exports to avoid competition. We also find that new ventures with entrepreneurial competitive optimism within the home country reduce exports. Finally, entrepreneurial competitive optimism weakens the relationship between perceived competition and exports.