The issues addressed in this study are: What internal factors support changes in the international operations of new firms? and What effect do these changes have on the firm's structure, control system, and market performance. To answer these questions, this work examines the internal resources and market performance of a set of publicly traded biotechnology firms. Findings support the view that new firms can enter international markets through a variety of strategies, including international joint ventures and subsidiaries. Changes in international operations also are found to enhance firm market performance when accompanied by changes in firm structure and control systems. However, managers must be patient because market performance only improves significantly two years after these organizational changes have taken place.
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