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Book part
Publication date: 31 January 2015

Gary Knight

Born global firms undertake international business at or near their founding. In general, they are a type of highly international small and medium-sized enterprise. In the past…

Abstract

Born global firms undertake international business at or near their founding. In general, they are a type of highly international small and medium-sized enterprise. In the past two decades, born globals have emerged in substantial numbers worldwide, in conjunction with evolutionary trends in globalization and advanced information and communications technologies. In this paper, I summarize extant literature on born globals. I also address their role in the emergent field of international entrepreneurship and the linkage to national competitive advantage. Finally, I suggest numerous research directions on born globals, especially in the context of emerging markets.

Details

Entrepreneurship in International Marketing
Type: Book
ISBN: 978-1-78441-448-1

Keywords

Book part
Publication date: 21 August 2012

Ho Yin Wong and Bill Merrilees

The purpose of this study is to advance our understanding of the difference between born globals and non-born globals. An Australian sample of 315 internationally active firms is…

Abstract

The purpose of this study is to advance our understanding of the difference between born globals and non-born globals. An Australian sample of 315 internationally active firms is surveyed using the mail questionnaire approach. After comparing born globals with other international firms, the results show about a quarter of the samples was born globals. The main differentiating attributes of the born globals versus non-born globals were their international performance, greater international commitment (willingness to invest resources into international ventures), smaller size of firms, and speed to market. Alternatively, there were several marketing capabilities, such as market orientation and brand adaptation, which were not superior for born globals.

Details

Interdisciplinary Approaches to Product Design, Innovation, & Branding in International Marketing
Type: Book
ISBN: 978-1-78190-016-1

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Book part
Publication date: 31 January 2015

Liliya Altshuler Oxtorp and Ulf Elg

While earlier research discussed networking and alliance strategies of born globals on a strategic level, this paper investigates and analyses the specific organizational skills…

Abstract

While earlier research discussed networking and alliance strategies of born globals on a strategic level, this paper investigates and analyses the specific organizational skills that enable the firms to successfully initiate, manage and finish their R&D alliances with Multinational Enterprises (MNEs). It is discussed how the specific aspects of the alliance capability can help born globals to counteract the challenges and risks of collaborating with MNEs. A longitudinal process study of a Danish technology born global with three embedded cases of its R&D and marketing alliances with Asian MNEs is discussed. The organizational skills comprising the alliance capability are defined to be internal and external assessment skills, need detection and coupling skills, asset protection skills, project management skills, termination skills and the learning processes to build the alliance capability further. A set of propositions is developed to tie these organizational skills to alliance performance.

Details

Entrepreneurship in International Marketing
Type: Book
ISBN: 978-1-78441-448-1

Keywords

Article
Publication date: 7 June 2023

Sui Sui, Matthias Baum and Dandan Li

This paper aims to study the learning-by-exporting effect among small-to-medium-sized enterprises (SMEs). Specifically, the authors propose a dynamic perspective and suggest that…

Abstract

Purpose

This paper aims to study the learning-by-exporting effect among small-to-medium-sized enterprises (SMEs). Specifically, the authors propose a dynamic perspective and suggest that learning-by-exporting is duration-dependent and contingent upon the born global internationalization strategy. In earlier phases of export activities, exporting has had a strong positive effect on SMEs’ innovations, which, however, diminishes over time. This inverted U-shape effect is even more distinct for born global firms.

Design/methodology/approach

The authors used longitudinal data with 1,689 Canadian SMEs to test their hypotheses. A two-stage instrumental approach is used to take into account the endogeneity of the born global international strategy on new product innovations.

Findings

Born globals learn faster at the early stages of exporting but also restrain their innovations more strongly than gradual internationalizers in the longer run, leveling out the initial learning advantages of newness. Thus, this study suggests that born globals have a significantly different learning trajectory than gradual internationalizers.

Practical implications

To maximize the benefits of exporting on innovation, managers should focus on learning during the initial years of exporting. However, once this period has passed, it is advisable for managers to invest in research and development as well as other innovation activities to complement the learning effect of exporting. Born global firms experience more rapid learning at the initial stage of exporting, but such learning effects wear off quicker later than gradually internationalized firms. For SME managers, this study helps draw their attention to the learning benefits of exporting in the initial years of export participation.

Originality/value

This study corroborates recent studies arguing for a “learning-by-exporting” effect. Providing longitudinal firm-level evidence, the authors also forward a dynamic perspective and show that learning by exporting is duration dependent and contingent upon the market entry strategy pursued by SMEs.

Details

Multinational Business Review, vol. 31 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

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, have…

10026

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

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Article
Publication date: 19 May 2020

Svante Andersson, Gabriel Baffour Awuah, Ulf Aagerup and Ingemar Wictor

This study aims to investigate how mature born global firms create value for customers to achieve continued international growth.

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Abstract

Purpose

This study aims to investigate how mature born global firms create value for customers to achieve continued international growth.

Design/methodology/approach

The study employs a case study approach to investigate the under-researched area of how mature born globals create value for customers and, by doing so, contribute to their continued international growth. This in-depth examination of how three born globals developed over time uses interviews, observation and secondary data.

Findings

The findings indicate that the entrepreneurs of born global firms, that continued to grow, created a culture in the early stages that supported value creation for foreign customers. These firms have built a competitive position by developing international niche products. They have also implemented a combination of proactive and reactive market orientation to facilitate the creation and delivery of value to customers. To maintain growth, they further invest the revenues earned on additional international marketing activities and continuously enhance their focal products.

Research limitations/implications

The study relies on three cases. We therefore recommend that future studies extend the scope of the research to several companies in various industries and countries, in which the theoretical arguments can be applied. In addition, further studies that test the propositions developed in this study, in different contexts, are highly recommended.

Practical implications

To gain international growth, managers should create an organizational culture that facilitates satisfying international customer needs. Firms should continuously invest in sales and market development (e.g. social media marketing, personal selling) and undertake technology development of niche rather than new products. To achieve international growth, managers need to standardize part of the offer to achieve economies of scale and adapt the other part to international customers' needs.

Originality/value

Research on born globals has focused on the early stages of their internationalization processes, while largely neglecting the later stages (mature born globals) or the factors that lead to continued international growth. To address this gap, this study explores what happens when born globals ‘grow up’. This study contributes to the literature by capturing the factors and processes underlying how mature born globals create value for customers, for international growth. In particular, the study shows that the culture and strategies developed in the born globals' early stages also lead to international growth in later stages. The mature born globals have also invested in niche products, brand building, and effective market channels and adopted a combination of proactive and reactive market orientations.

Details

International Marketing Review, vol. 37 no. 2
Type: Research Article
ISSN: 0265-1335

Keywords

Open Access
Article
Publication date: 1 March 2021

Nida Gull, Muhammad Asghar, Qader Aleem Ahmed, Asim Rafique Muhammad, Ahmed Syed Jameel and Shan-e Ali

This study aims to extend the understanding of entrepreneurial orientation (EO) by investigating the international EO (IEO) from the perspective of the international performance…

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Abstract

Purpose

This study aims to extend the understanding of entrepreneurial orientation (EO) by investigating the international EO (IEO) from the perspective of the international performance of born global firms. The born global firm's EOs toward global firms led to innovation and dynamic organizational capabilities and to improve the firms' international performance and development.

Design/methodology/approach

It is a hypothesis that IEO predicted that utilization of export promotion programs (EPPs) would be positively associated with international performance. The samples of 405 respondents were collected from born global firms to acquire higher international performance of firms in China. Structural equation modeling (SEM) and mediation analysis are processed to test the proposed hypotheses empirically.

Findings

The results from the SEM test revealed that the network relationships and utilization of EPPs fully mediate the effect of IEO on international performance. These results indicate that not only IEO is an important factor of network relationships but also the utilization of EPPs and international performance for born global firms. IEO can motivate managers to find the right network relationships and ultimately improve company performance. The IEO of the initiative has strong impact on the performance of international firms.

Originality/value

There is a comprehensive view among the relationships of IEO, entrepreneurial competencies and the network utilization of government EPPs, international performance in the context of born global firms. Theoretical and practical implications are discussed in detail.

Article
Publication date: 7 September 2012

Tanja Kontinen and Arto Ojala

The purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the internationalization…

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Abstract

Purpose

The purpose of this paper is to increase understanding of the internationalization of family firms; to investigate how the framework by Bell et al. on the internationalization patterns of firms could explain the internationalization pathways taken by family‐owned small to medium‐sized enterprises (SMEs); and to identify typical patterns and features in the various pathways taken by family‐owned SMEs.

Design/methodology/approach

This paper reports findings from an in‐depth multiple case study with eight Finnish family‐owned SMEs.

Findings

The ownership structure had the most important role in defining the internationalization pathways followed by the family‐owned SMEs: a fragmented ownership structure led to traditional internationalization pathway whereas a concentrated ownership base led to born global or born‐again global pathways.

Practical implications

Family entrepreneurs should carefully consider the division of ownership and seek to build new relationships in foreign markets, in addition to their primary co‐operators.

Originality/value

The authors extend the integrative model of small firm internationalization by Bell et al. toward family‐owned SMEs and highlight the most important dimensions in the different internationalization pathways of family SMEs. The ownership dimension is integrated within discussion on differing internationalization pathways. The authors utilize a family business specific perspective (the stewardship perspective), in order to understand the specific features of internationalization among family SMEs, and also how these features differ between family SMEs and other firms.

Details

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

Keywords

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…

10399

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

Keywords

Article
Publication date: 4 September 2017

Douglas Dow

The purpose of this paper is to respond to Hennart’s (2014) challenge to the existing born global literature. In his challenge, Hennart proposes a simpler explanation of why some…

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Abstract

Purpose

The purpose of this paper is to respond to Hennart’s (2014) challenge to the existing born global literature. In his challenge, Hennart proposes a simpler explanation of why some firms internationalize earlier and more aggressively than others. However, such a parsimonious model of born global firms raises the awkward question of whether born global firms are indeed any different from firms that internationalize more gradually.

Design/methodology/approach

Using two extensive surveys of Australian exporters, this paper first explores the degree to which a set of six “facilitating factors” that Hennart puts forward are different across born global and non-born global firms. Next, it tests the second aspect of the debate highlighted above – i.e. whether born global firms behave differently from non-born global firms. This is done by testing for differences in the patterns of early market selection for born global and non-born global firms.

Findings

Support is found for both the role of facilitating factors and for the view that born global firms behave differently from non-born global firms. As a result, it is proposed that the Hennart and the RBV-oriented explanations of born global firms need to be viewed as complementary, rather than competing. Each may represent a necessary but not sufficient condition with respect to born global firms.

Originality/value

A systematic testing for differences in facilitating factors and market selection patterns across born global and non-born global firms are both issues that have major implications for the born global literature, and yet have been left largely unexplored to date.

Details

Review of International Business and Strategy, vol. 27 no. 3
Type: Research Article
ISSN: 2059-6014

Keywords

1 – 10 of over 30000