Environmental characteristics and technological capabilities' interaction in high-technology born global firms

Abstract

This paper focuses on the growing phenomenon of 'Born Globals' (BGs) – small and technology-oriented firms that become international soon after establishment. Previous research identified that, owing to their unique traits, BGs tend to incept more rapidly in high technology industries. These firms are distinguished by moving quickly from inception to first foreign market entry – a strategy that carries considerable risks. Yet though this early internationalisation is a unique trait of BGs and is their core defining factor, some aspects of it are still under-addressed in the literature. One such element is the role of the external environment, namely target market factors, previously found to affect the operations and performance of gradually globalising firms. This conceptual paper proposes a model for how BGs' technological capabilities interact with their niche marketing focus strategy, and how these interactions moderate the risk factors associated with target markets factors to influence BGs' performance.