China Peril or China Mania ? Entrepreneurs' “host” country perceptions, social interactions, and internationalization.

This paper examines how entrepreneurs' perceptions of a foreign country prior to internationalization are affected by social interactions with peers and other actors during initial approaches of that country and what consequences do these evolving perceptions have upon internationalization decision and later developments. Specifically, we follow a social-cognitive perspective at the intersection between international entrepreneurship (study of how cross-border opportunities are identified and exploited by entrepreneurs); cognitive (how entrepreneurial perceptions and motivations are formed at home and in host countries) and socialization (the process through which individuals learn the values, norms, beliefs and behaviors of societies, organizations or groups) literatures. This perspective is employed in an exploratory qualitative study of nascent international entrepreneurs in China. Our findings show processes of cognitive reinforcement and cognitive dissonance leading to various internationalization decisions. Propositions are made and discussed along with implications for research and practice.