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Article
Publication date: 7 September 2012

Edith Olejnik and Bernhard Swoboda

The purpose of this paper is to identify the internationalisation patterns of small‐ and medium‐sized enterprises (SMEs) quantitatively, to describe SMEs as they follow…

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11057

Abstract

Purpose

The purpose of this paper is to identify the internationalisation patterns of small‐ and medium‐sized enterprises (SMEs) quantitatively, to describe SMEs as they follow different patterns over time and to discuss the determinants of these patterns through empirical study.

Design/methodology/approach

The authors conducted a questionnaire survey among mature German SMEs (n=674). To identify internationalisation patterns, a latent class clustering approach was applied. Because of the large sample, a multinomial logistic regression analysis could be used to analyse the factors influencing these patterns.

Findings

The authors empirically find three internationalisation patterns: traditionals, born globals and born‐again globals. Comparing modern SMEs with the same SMEs from ten years ago, it was found that firms may change their patterns. Moreover, the patterns are determined by international orientation, growth orientation, communication capability, intelligence generation capability and marketing‐mix standardisation.

Research limitations/implications

Combining elements of the Uppsala model (countries and operation modes) and born global research (time lag and foreign sales ratio), three internationalisation patterns of established international SMEs from traditional sectors were identified empirically. Because of the multidimensional nature of internationalisation, the patterns may change over time. Different firm‐level factors determine the internationalisation patterns.

Originality/value

Instead of applying “arbitrary” thresholds, the paper provides a quantitative approach to identifying internationalisation patterns. These patterns confirm the three main internationalisation pathways discussed in the international marketing literature. The paper further advances the field by describing the patterns, showing evidence that the patterns may cross over time and providing information on the factors that influence the patterns.

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Article
Publication date: 7 September 2012

Sui Sui, Zhihao Yu and Matthias Baum

Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most born

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1537

Abstract

Purpose

Recently, studies call for a more nuanced perspective on different internationalization patterns pursued by early internationalizers. These studies argue that most born global firms turn out to be born regional and that the proportion of true born global firms would be overestimated. Moreover, literature claims that the proportion of born global firms increases over time due to macroeconomic trends. The purpose of this paper is to investigate these assumptions by providing a dynamic perspective on the prevalence of different types of internationalization patterns among Canadian small and medium‐sized exporters (SMEs).

Design/methodology/approach

To empirically examine the ideas above, the authors constructed a unique large‐scale longitudinal (1997‐2004) dataset. A multinomial logit model is employed to estimate a firm's predicted probability, Ceteris paribus, of choosing different internationalization patterns: born global, born regional, and gradual internationalization.

Findings

It is found that born global firms indeed account for a smaller proportion than born regional firms (16 per cent vs 27 per cent). However, evidence is found that born globals and born regionals are increasingly established over time and that macroeconomic factors seem to account for this development, at least partially.

Originality/value

Combining a rigorous empirical analysis with a unique large‐scale longitudinal dataset, the paper addresses two fundamental research questions in the international entrepreneurship (IE) literature: which internationalization pattern prevails; and if the born global pattern is increasingly established over time. The paper therewith theoretically contributes by comparing the predictive value of different internationalization frameworks (international new venture (INV) framework, stage‐models and regionalization hypothesis), toward which there is considerable current debate.

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Article
Publication date: 19 April 2013

Susan Freeman, Seyda Deligonul and Tamer Cavusgil

Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the…

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3322

Abstract

Purpose

Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the processes of de‐internationalization and re‐internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born‐globals by addressing two questions. How do managers move through the de‐internationalization (exit) to re‐internationalization (re‐entry) process? How do they choose their patterns of internationalization?

Design/methodology/approach

To address these research gaps, this study draws on 26 in‐depth interviews with senior managers across nine Australian born‐globals.

Findings

Moving between outward and inward‐oriented activity as they de‐internationalize and re‐internationalize is used as proactive strategic re‐structuring by born‐global managers for survival during periods of global economic decline or changing competitive conditions.

Originality/value

This study provides new theoretical insights where the entrepreneur is central to the internationalization process and provides practical implications for those involved in international business and marketing.

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Article
Publication date: 28 February 2019

Justin Paul and Alexander Rosado-Serrano

During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms…

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3820

Abstract

Purpose

During the last two decades, studies on the theoretical models in the area of international business (IB), such as gradual internationalization and the born-global firms, have gained the attention of researchers. The purpose of this paper is to critically review the studies on the process of internationalization (Gradual Internationalization vs Born-Global/International new venture models) to identify the research gaps in this area and to prepare a future research agenda.

Design/methodology/approach

Systematic literature review method was employed for this review. The authors highlight the findings from prior studies, compare and contrast salient characteristics and features, based on the articles published in journals with an impact factor score of at least 1.0, and provide directions for research.

Findings

The authors find that there are several areas that were under-explored in prior research. There is a great potential for theoretical extension and theory development in this field as it covers the tenets of four subjects: IB, marketing, strategic management and entrepreneurship.

Originality/value

There is no comprehensive/integrated review exploring the methods/variables and constructs used in prior studies integrating gradual internationalization/born-global models based on all the articles published in well-regarded academic journals. This review seeks to provide deeper insights, which help us to contribute toward the development of this research field.

Details

International Marketing Review, vol. 36 no. 6
Type: Research Article
ISSN: 0265-1335

Keywords

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Article
Publication date: 9 August 2011

Svante Andersson

The purpose of this study is to enhance the understanding of a born global firm's early internationalization process and the entrepreneur's decisions regarding…

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9328

Abstract

Purpose

The purpose of this study is to enhance the understanding of a born global firm's early internationalization process and the entrepreneur's decisions regarding internationalization by using effectuation theory.

Design/methodology/approach

An explorative case study is used to explore whether effectuation theory is a fruitful alternative perspective compared with the dominant paradigm (causation), which is primarily used in earlier studies on born globals.

Findings

The study shows how a born global company could enter many markets in a short time, by co‐operating with local network partners. The founders' prior knowledge and networks were important to understand the rapid international expansion. Effectuation theory focuses on the entrepreneurs' ability to create opportunities together with network partners and is a useful tool to understand the development in the born global firm.

Research limitations/implications

The study shows that effectuation theory holds promise for developing the international entrepreneurship area. Future research is recommended to focus not only on the entrepreneur's competencies, but also on the entrepreneur's behavior, including during the time before they started the firm.

Practical implications

Decision‐makers in the early development of born global firms are recommended to use his/her own and his/her company's resources and network. Also advantage should be taken of opportunities when they are recognized or created, instead of focusing on traditional planning activities.

Originality/value

There are few studies that have used effectuation theory as a basis for understanding the early development of a born global firm.

Details

Journal of Small Business and Enterprise Development, vol. 18 no. 3
Type: Research Article
ISSN: 1462-6004

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Article
Publication date: 21 October 2019

Karthik Dhandapani, Rajesh Srinivas Upadhyayula and Rakesh Basant

Extant literature suggests that post-entry internationalization strategies and performance implications of born globals are an under-researched area. This paper aims to…

Abstract

Purpose

Extant literature suggests that post-entry internationalization strategies and performance implications of born globals are an under-researched area. This paper aims to examine the internationalization strategies of born global service firms (BGSFs) and performance implications thereof through strategic group analysis of hand-collected data from Indian information technology (IT) firms.

Design/methodology/approach

Strategic group analysis has been used to examine if there are any differences in the strategic decisions across firms and if there are any implications of these strategies on the performance of firms. The strategic group approach helps understand not only the antecedents but also the strategic trade-offs that different groups of BGSFs face after internationalization. The study uses Indian IT industry as the context for analysis of BGSFs, as studies have found that the Indian IT industry to have significant presence of born globals.

Findings

Four distinct strategic paths were found to be followed by BGSFs. In addition, the nature of services and ways of mobilization or deployment of resources explain the different internationalization paths and consequently performance. The performance differences primarily stem from the choice of degree of commitment and scope of internationalization.

Practical implications

This study provides distinct insights to practice by charting internationalization paths for an emerging born global.

Originality/value

This paper contributes to the theory on born globals by using strategic lens to explain the internationalization paths and their performance implications.

Details

Competitiveness Review: An International Business Journal , vol. 29 no. 5
Type: Research Article
ISSN: 1059-5422

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Article
Publication date: 7 November 2016

Stephan Gerschewski, Valerie J. Lindsay and Elizabeth Rose

The purpose of this paper is to examine how entrepreneurial orientation (EO) is manifested in the context of born global firms. Specifically, the authors investigate the…

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2081

Abstract

Purpose

The purpose of this paper is to examine how entrepreneurial orientation (EO) is manifested in the context of born global firms. Specifically, the authors investigate the extent to which the EO dimensions of the influential Miller/Covin & Slevin scale are demonstrated in born globals. In addition, following calls in the literature, some as-yet unrecognised dimensions of EO in born globals are examined.

Design/methodology/approach

The authors use a qualitative research approach by conducting semi-structured, in-depth interviews with eight born global firms from New Zealand and Australia.

Findings

The authors find that the EO dimensions of proactiveness and innovativeness are strongly prevalent in these firms. In contrast to the extant literature, the results also indicate that these born global firms generally display a relatively low level of risk-taking. The authors find strong empirical support for two additional emerging dimensions of EO: passion and perseverance.

Originality/value

The study provides two key contributions to the area of international entrepreneurship by investigating how EO is prevalent in the context of born globals and by proposing the new dimensions of passion and perseverance.

Details

Review of International Business and Strategy, vol. 26 no. 4
Type: Research Article
ISSN: 2059-6014

Keywords

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Article
Publication date: 26 August 2021

Paul Brockman, Douglas Dow, Hoang Long Phan, Hussain Gulzar Rammal and Ralf Zurbruegg

This study aims to explore the intention–action relationship of small and medium-sized (SMEs) firms with knowledge capital that declare their intention to internationalize…

Abstract

Purpose

This study aims to explore the intention–action relationship of small and medium-sized (SMEs) firms with knowledge capital that declare their intention to internationalize from their inception.

Design/methodology/approach

The authors apply the theory of planned behavior and hand-collect a database of Chinese born globals, purely domestic firms and traditional exporting firms. The authors’ hypothesis is that Chinese born globals [or young aspiring globals (YAGs)] will strive to acquire domestic and international patents at an early stage to institutionally protect their knowledge-capital via intellectual property rights as they enter the competitive global marketplace.

Findings

The results confirm that knowledge-focused YAGs apply for patents at an earlier stage than purely domestic and traditional exporting firms. However, in the long run, these firms are neither demonstrating increased knowledge capital by being more innovative nor producing more valuable innovations than their counterparts.

Originality/value

This study tests the intention–action relationship in the context of SMEs internationalization. It contributes to the internationalization literature by identifying the internationalization pattern of born globals (YAGs) from emerging markets and providing an explanation for what happens to these firms as they mature.

Details

Journal of Knowledge Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1367-3270

Keywords

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Article
Publication date: 7 September 2012

Olli Kuivalainen, Sanna Sundqvist, Sami Saarenketo and Rod McNaughton

The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and…

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9352

Abstract

Purpose

The purpose of this paper is to present an overview of the conceptual frameworks and concepts with which the research on internationalization patterns of small and medium‐sized enterprises (SMEs) should be conducted.

Design/methodology/approach

A comprehensive overview of concepts and a conceptual framework to study internationalization patterns of SMEs is offered.

Findings

The complexities of existing definitions and methodologies for researching internationalization patterns are highlighted, and a synthesis of the issues is provided. An integrative model of internationalization pathways, and their antecedents and outcomes is presented.

Research limitations/implications

It is recommended that future research focuses especially on the time dimension of internationalization patterns. Future research can contribute to the literature by adopting a longitudinal approach with larger samples and more detailed cases to capture the dynamics of internationalization.

Practical implications

Practitioners might map their positions, and look for challenges and opportunities with regard to their chosen internationalization pattern. They can also benchmark other firms’ pathways and fine‐tune their own approach to internationalization.

Originality/value

The paper integrates a large body of research in an important research area in international marketing. It also provides guidance on how to conduct future research in the area, and introduces the content of this special issue of the International Marketing Review.

Details

International Marketing Review, vol. 29 no. 5
Type: Research Article
ISSN: 0265-1335

Keywords

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Article
Publication date: 9 March 2015

Sascha Fuerst and Peter Zettinig

This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of…

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4766

Abstract

Purpose

This paper aims to examine the dynamic process of knowledge creation of the international new venture (INV) through the interaction with network partners. The process of how INVs make use of external sources for the acquisition of international market knowledge is not well-understood.

Design/methodology/approach

To uncover the dynamics of the knowledge creation process, the authors applied event-driven process research by following the internationalization process of four INVs in real time. More specifically, they adopted qualitative diary research combined with periodic follow-up interviews as the main data collection method. A visual mapping strategy was used for the analysis of the process data.

Findings

The analysis shows that different pathways of knowledge acquisition through congenital learning, searching, vicarious learning and grafting interact with each other. Grafting and experiential learning alongside the partner lead to the acquisition of internationalization knowledge in particular. Knowledge sources for international market knowledge are proactively created by the entrepreneurs. The wider effectual stakeholder network constitutes an important source for international market knowledge.

Research limitations/implications

The authors followed the early internationalization process of the case firm in real time over a 10-month period. This provides a limited window of observation. Future research might extend the observation period to examine further the evolutionary nature of the different learning types throughout the growth of the INV. The case firms operate in Internet-enabled businesses and are all located in the same country and city (i.e. Colombia and the city of Medellin). Future studies might focus on firms operating in different industries and geographical areas.

Practical implications

Congenital technological knowledge is a prerequisite for internationalization. The entrepreneur, however, does not need to rely on congenital international market knowledge. Such knowledge can be developed through network partners. Foreign business and institutional knowledge can be obtained vicariously, also from professional advisors. Internationalization knowledge, however, needs to be developed in close interaction with an international cooperation partner, where a strong relationship commitment prevails.

Originality/value

The authors use effectuation theory combined with process research methods to gain insights into the dynamics of knowledge creation within the INV. Thereby, they are able to shed light on the dynamics of the process that is difficult to capture through cross-sectional research designs. Research on the internationalization process of young ventures in the context of Latin America is scarce. Therefore, the paper contributes new knowledge about the development of these firms in that particular region.

Details

European Business Review, vol. 27 no. 2
Type: Research Article
ISSN: 0955-534X

Keywords

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