Gradually internationalizing ‘born global’ firms: an oxymoron (original) (raw)
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Born global and born-again global firms: A comparison of internationalization patterns
This article reports the results of research that identifies and compares two patterns of internationalization that may be found amongst smaller firms: born-global firms (that internationalize rapidly soon after their founding), and born-again global firms (that exist as domestic firms for a long-time before rapidly internationalizing). Both patterns share the characteristic of rapid and intensive internationalization, but the first type of firm enters foreign markets as new ventures, while the latter do so much later in their lifecycle.
Small and medium sized multinationals: the internationalization process of born global companies
This empirical study examines the internationalization process of 'born global', knowledge-intensive SMEs. The process is characterized by immediate entry to international markets, and subsequently by increased, gradual commitment to international activities. A model is presented that examines the relationship between complexity of international strategies, the number of value added activities that are internationalized and the 'psychic distance' to target markets. An empirical examination of the model shows that export is the preferred entry strategy. Over time export is replaced by greenfield FDI and subsequently by M&As. Entry to 'psychically closer' markets precedes entry to other markets, sales volumes in these markets are higher and the strategy employed in these markets is more complex.
Since the growth of the 'born global' concept, much of the established literature has tended to overlook the development of its characteristics outside high technology sectors. To further enhance our understanding of this phenomenon, this article draws on the 'born global' literature to identify common internationalization behaviours with which rapidly internationalizing firms are involved. Six propositions are developed related to the key dimensions of pace, scale and pattern of firm internationalization. The results from a comprehensive case study of four non-high-tech Australian 'born global' firms suggest that entrepreneurial interpretation is a factor in determining the pace with which a firm internationalizes. Other key implications include the importance of product imitability in assessing the extent of a firm's international operations, the significance of psychic distance in the assessment of prospective international markets, and that entry mode choice is influenced by the prevailing trends established in each firm's industry and the need to maximize its internal resources. Keywords born-global firms, rapid internationalization, international strategy for small and medium-sized enterprises (SMEs)
Some Essential Considerations on the Phenomenon of Early Internationalization and Born-Global Firms
Conference: Proceedings of the 35th International Business Information Management Association Conference (IBIMA) Education Excellence and Innovation Management: A 2025 Vision to Sustain Economic Development during Global ChallengesAt: 1-2 April, 2020 Seville, Spain, 2020
Early internationalization and the phenomenon of born-global firms or global start-ups are a fascinating and evolving aspect of modern entrepreneurship. The literature on the subject certainly constitutes a rich collection of studies on the phenomenon of early internationalization, much has also been devoted to the phenomenon of born-global companies. This article supplements the current knowledge in this area and discusses the genesis of the theory of early internationalization, presents the essence and key attributes of the functioning of born-global companies, and discusses the core strategies for managing an early internationalized company. All theoretical considerations were based on scientific literature sources.
Exploring the antecedents of born-global companies’ international development
International Entrepreneurship and Management Journal
In recent years the emergence of so-called born-global firms -firms which start their international activities from their start up- has challenged traditional theoretical assumptions about the incremental process of internationalization, giving birth to the development of a new stream of studies. In order to give a contribution to this area of studies, the purpose of this paper is to empirically test a model to explain how well some factors are able to explain the level of international development of born global companies. A mail survey was conducted within a sample of born-global Italian companies, belonging to the most representative industries for the Italian economy (metal products and machinery equipment; furniture; chemicals and food). Findings support the validity of a model including five significant predictors: uncertainty and dynamism in the firm’s industry, operating in niche-based industries, markets’ and segments’ knowledge held by the founder/managers, product innovation and firms’ innovativeness, access to networks. Findings are discussed and managerial implications are drawn.
Journal of International Business Studies, 2015
Our 2004 Journal of International Business Studies article, "Innovation, Organizational Capabilities, and the Born Global Firm" provided a framework for the phenomenon of early and rapid internationalization among young, entrepreneurial firms. This work can be characterized as an integration of marketing, entrepreneurial, and capability-based thinking around exporting, positioned as the born global exporter. The article also reported findings from a national study of start-up firms that expanded abroad early in their evolution. In the present commentary, we reflect on the contributions of the 2004 article, review the scholarship on the topic over the past decade, and offer suggestions for future inquiry. While the incidence of early internationalization by firms was a novel concept two decades ago, today such firms are found in abundance in many countries. Yet many unresolved research questions remain, including the crucial topic of what happens to "born global" firms as they grow and mature over time. Similarly, the issue of why some firms internationalize early, others late in their evolution, and still others choose to remain local, is a fundamental question for international business scholarship.
Internationalization of the firm: stage approach vs. global approach
Globalization and virtual economy are external factors that drive companies to approach the global market from start up, giving birth to new studies on internationalization strategy, which represent an evolution of the classical stage models. According to the stage approach, companies start selling products in their home markets and then they sequentially look at new countries. Many firms do not follow incremental stage approach but is often reported that they start their international activities from their birth: they enter different country at once, approaching new markets for both exporting and sourcing. Debate in literature is still trying to define if the born global perspective is a new concept or a new label to indicate an old phenomenon. The study will go through a review and an analysis of the literature on market entry and sourcing strategy. The purpose of this paper is therefore to identify and categorize factors that drive companies’ choice towards the global approach instead of the stage approach.
On the internationalization process of firms: a critical analysis
Journal of International Business Studies, 1993
Even though international marketing has been challenged because of theoretical and methodological shortcomings, very few researchers have actually attempted to analyze the weaknesses based on principles of theory evaluation. In this article, the author examines two types of models addressing the individual rirm's internationalization process. A theory evaluation is performed based on the explanation and the falsification criteria. In order to improve the internationalization models, some measures are proposed.