The globalization strategies of business-to-business born global firms in the wireless technology industry

Abstract

This paper discusses the globalization process of business-to-business born globals in a rapidly growing industry, the wireless technology industry. Deviations in these patterns in regards to the mainstream pattern of internationalization and earlier born global literature are discussed. Furthermore, the roles of the founders and managers, the networks, the financial resources of the companies, and the innovations behind the companies under consideration are analyzed. A conceptual framework and propositions explaining the product, operation and market strategies of born globals are developed. The results suggest that born globals in the wireless sector do in fact deviate from the traditional internationalization process in many areas. Their expansion even to distant markets is rapid and they apply advanced product strategies at an early stage. However, their business operations are found to proceed at a more conventional pace and the notable difference from traditional firms is the rapid establishment of sales and marketing subsidiaries. Results emphasize the key role of the resources and capabilities of born globals in influencing the advancement of product categories, operation strategies, and global market presence. Born global firms were found to lack the resources and capabilities accumulated by traditionally internationalizing firms, and they therefore need to acquire them either through the earlier experience of the founding team, which should be complementary in nature, or from external domestic and international network actors.