International new ventures and governance structures—are international entrepreneurs strategic or entrepreneurial?

Abstract

Born Global firms have attracted significant research interest over the past decade and one of the recurring research questions is how Born Global firms are able to overcome resource limitations to establish effective international sales and marketing channels so rapidly. Several qualitative studies have been performed in order to investigate this question and most conclude that Born Global firms do it by using entrepreneurial hybrid structures to govern their international activities. This study offers a quantitative analysis on whether there are significant differences between the international activities of small international firms and seeks to determine whether Born Global firms are more ‘entrepreneurial’ in terms of governance of their international activities and resources than other small international firms. The study adopts Aspelund and Moen’s (2005) classification of small international firms according to their time to internationalization and share of foreign sales and investigates differences in characteristics and governance of international activities. As expected, the study found differences in a broad range of characteristics between the firms that had adopted the different internationalization strategies. More surprisingly, the study fails to identify any differences between the firms on international governance structures for international operations. This a very intriguing result as it opposes a lot of qualitative work over the past decade and it also implies that Born Global firms are strategic in deciding their governance structures for international marketing activities regardless of their resource situation. Implications of the findings are discussed and alternative venues for further research are proposed.