New Venture Internationalization and the Cluster Life Cycle: Insights from Ireland’s Indigenous Software Industry

This chapter takes a geographical and historical perspective on the evolution of the indigenous software industry in Ireland, with particular emphasis on the internationalization of new ventures within it. The substantial literature on rapidly internationalizing new ventures has largely ignored the importance of place in providing a context within which such companies can emerge and be successful in their growth and internationalization strategies. Using the concept of a cluster life cycle as an important analytical lens, I argue that the speed and scope of new venture internationalization in the Irish software case was far greater in the more mature phases of the cluster life cycle than in its embryonic stage. This was because some of the key benefits of being in a cluster stem from superior access to critical resources and knowledge, which become more abundant in developed clusters. Particularly important in supporting rapid internationalization in the Irish software case were access to venture capital, skilled labour and experienced senior managers, and specifically managers and entrepreneurs with accumulated know-how about internationalization. Also important was the maturing of the policy environment, supporting entrepreneurship.