Orientations and capabilities of born global firms from emerging markets (original) (raw)
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International Business Research, 2017
We investigate born global firms, companies that expand rapidly into foreign markets from or near their founding, to see how they are able to succeed despite limited resources and experience. We highlight the roles of knowledge and capabilities for early internationalization and success in international markets. Results from a survey-based study suggest born global firms have a distinctive mix of orientations and strategies that allow them to succeed in international markets. Specifically, research revealed that possession of an international entrepreneurial orientation, a focus and/or differentiation strategy, and marketing capabilities are important antecedent factors in the international performance of born global firms. These results are discussed.
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.
International Journal of Commerce and Finance, 2022
The purpose of this study is to search the mediator roles of unique product development and global technological competence in the effect of international entrepreneurial orientation on company performance in international markets for born global companies. The study was conducted on born global companies which started its international activities in its first 7 years and operate in technoparks in Turkey. Data was collected by a questionnaire from 158 born global companies. According to the method proposed by Baron and Kenny, three models were created and compared with each other. The Structural Equation Modeling (SEM) method was applied because it is more appropriate for complex models. According to the findings of the study, unique product development and global technological competence do not have mediator roles in the effect of international entrepreneurial orientation on company performance in international markets. However, there is a direct effect of international entrepreneurial orientation on company performance in international markets. Global technological competence has a direct effect on performance in international markets. On the other hand, unique product development does not have a direct effect on performance in international markets but unique product development has a direct effect on global technological competence.
International entrepreneurial orientation and performance outcomes in export markets
This study examines how behavioral elements of international entrepreneurial orientation (i.e., product innovativeness, risk-taking, proactiveness, competitive aggressiveness, and autonomy) increase variability in scope of regional market expansion, and the international marketing channel management conditions under which this occurs. Results from an empirical study in a developing market show that not all behavioral elements of international entrepreneurial orientation (IEO) increase scope of regional expansion. The study specifically finds that scope of regional expansion is fostered when high levels of product innovation intensity, risk-taking, competitive aggressiveness, and autonomous behaviors are aligned with a stronger channel management capability. Conversely, the regional expansion values of product innovation novelty and proactiveness are cancelled out when channel management capability levels are high.
Journal of Business Research, 2021
This paper aims to propose an integrating model that can explain firm international competitiveness through the dual lens of network and firm behaviour. The research examines the case of born globals (BGs) created during the last financial crisis in a sample of 306 Spanish BGs using structural equation modelling. Results show that in today's highly competitive and dynamic globalised markets, developing strategic orientations (market and entrepreneurial) in a network context helps build an optimal antecedent interfirm environment. This environment channels values generated through joint efforts to strengthen an individual BG's international performance. Capabilities play an essential mediating role to achieve this effect through the integrated application of dynamic capabilities and ambidexterity theories. Thus, exploratory (adaptation and absorption) capabilities will influence the capacity to exploit knowledge through innovation capability and lead to higher performance. Findings provide practical insights into the hierarchisation of the sources of influence on BGs' performance. ☆ This research did not receive any specific grant from funding agencies in the public, commercial, or not-for-profit sectors.
Purpose/Research Question: In general, networks have played a role in improving innovation, and early-stage companies adopt an entrepreneurial orientation to secure competitiveness. In other words, the companies would like to penetrate global markets due to the CEO's international entrepreneurial orientation. In addition, by utilizing their networks, the companies would like to improve their international performance. Relatively few studies have been devoted to investigating the empirical relationships between entrepreneurial orientation, networks, and international performance. In particular, technology-based firms are one of the best samples. Therefore, this study aims to explore the characteristics of the firms and then investigate comprehensively and empirically the relationships between international entrepreneurial orientation, networks, and international performance, based on data from technology-based firms in South Korea. Design/Methodology/Approach: The study analyzes data from technology-based small and medium-sized enterprises (SMEs) using structural equation modeling (SEM). It assumes that networks will play a moderating role in the relationships between international entrepreneurial orientation and international performance. We carried out the survey after conducting interviews with CEOs of SMEs. Findings/Results: International entrepreneurial orientation has a significant effect on international performance. Moreover, the stronger the networks that SMEs have with other stakeholders such as universities, industries, and technoparks, the higher their international performance. With stronger networks, tech-based SMEs have easier access to useful technologies and hence better international performance. Research Limitations/Implications: There are some limitations to this study. First of all, the study relied heavily on quantitative methods, such as surveys. This approach is inadequate for considering individuals' in-depth opinions. Therefore, future research utilizing both qualitative and quantitative measures needs to be carried out. Second, this study has some academic limitations. In fact, this study considered restricted factors regarding innovation and networks; thus it is necessary to evaluate other variables such as environmental factors (e.g., regulations or support policies) that might be significantly associated with networks and innovation hereafter. Finally, due to the fact that this study was focused on SMEs, it is difficult to generalize the above results. However, this study implies that stronger network ties improve international performance, thus SMEs must establish and reinforce networks to improve the performance.
The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization
Journal of Entrepreneurship, Management and Innovation, 2014
Entrepreneurial orientation has emerged as a major construct in entrepreneurship literature. However, existing definitions of entrepreneurial orientation mainly focus on explorative behavior like innovativeness, proactiveness and risk-taking. Based on the long tradition of research on entrepreneurial functions, we argue that exploitative activities are no less an entrepreneurial endeavor than explorative activities. Following this understanding, we elaborate a broader conceptualization of the entrepreneurial orientation construct. In an empirical study with 346 established companies, we explore its effect on the performance of internationalization. Entrepreneurial orientation in its broader conceptualization positively influences the international performance and the effect is by far stronger than the one observed in existing studies. The reason for this is that both explorative and exploitative dimensions matter and equally drive the international performance. Entrepreneurial orientation positively influences the growth of the international activities as well. However, its effect is much lower. Whereas the explorative dimensions tend to foster the international growth, the exploitative dimensions do not show any effect.
Journal of International Entrepreneurship, 2019
In this study, we examine the impact of the founders' level of international entrepreneurial orientation (IEO) on the export degree and scope of early internationalizing firms (EIFs). Since the emergence of international entrepreneurship (IE) as a research field, theoretical knowledge on the performance determinants of EIFs remains limited. Those studies that have examined the performance determinants of EIFs predominantly focused on subjective performance measures and thus fall short in capturing the real performance dynamics. In addition, the effect of IEO on EIFs remains relatively unexamined in the context of lessdeveloped countries (LDCs). We adopted a quantitative approach to uncover the impact of founders' level of IEO on the objective international performance of EIFs. Our study was survey-based, and we drew data from the Bangladeshi apparel industry. The proposed hypotheses were tested using an ordered logistic regression modeling technique. We found that the export degree and scope of EIFs are influenced by their founders' level of IEO. Our findings also revealed a positive effect of two dimensions of IEO, i.e., proactivity and risk-taking propensity on the export degree and scope of EIFs. The implications of our findings for theory, policy, and practice are considered.
Journal of International Entrepreneurship, 2015
This Editorial Note highlights the four articles appearing in this issue of the Journal of International Entrepreneurship in the context of the impact of international entrepreneurial orientation on internationalperformance (IEO-P Relations). Aspects of entrepreneurial risk-taking, innovativeness and internationalization are respectively discussed by the second and third articles, while entrepreneurial, innovative and international marketing orientations in relations to firm capabilities are discuss in the third article. The fourth article explores aspects of entrepreneurial orientation internationally. The impact of a rich set of different moderating factors are pointed out by the four articles. Some coplementary research questions are also pointed out.