Abstract
Based on social network theory and RBV theories, the paper adopts cross case studies research method to analyze how network relationship facilitates born global companies to acquire resources in their internationalization process through three Chinese born global company case studies. The research indicates that born global company’s network relationship built up in internationalization process can be classified into domestic strong ties, domestic weak ties, foreign strong ties and foreign weak ties in line with network ties’ strength and geographic dispersion. Those four types of network ties play very important as well as differentiated roles in Chinese born global companies’ internationalization process.
Highlights
Network relations are considered as one of the most important factors that influence new venture’s internationalization process in international entrepreneurship research (McDougall and Oviatt 2000; Jones et al 2011) Comparing with large company’s international activities, small and new ventures need to depend on network relations and personal contacts in their internationalization process due to their constraints in financial resources, human resources, etc (Oviatt and McDougall 1994; Manalova et al 2010)
Strong ties always refers to ties of actors interact with high frequency and support each other in emotion, partners’ interaction generally has features of reciprocity and retribution, such as network composed of relatives, classmates, friends and other intimate cooperator or stakeholders, while weak ties are mainly ties like acquaintance, they are obviously weaker than strong ties in interaction time, emotion strength, intimacy and reciprocity
Based on above research outcomes, the paper has proposed measuring approaches of strong and weak ties, that is: the extent of intimacy of interviewee has mentioned, for example, friends, colleagues, classmates and cooperative partners who have intimate ties each other are regarded as strong ties; the extent of time and energy invested, for example, frequent contacts with governmental officials and key customers belong to strong ties, while regularly attending some exhibition to maintain the relationship are known as weak ties
Summary
Network relations are considered as one of the most important factors that influence new venture’s internationalization process in international entrepreneurship research (McDougall and Oviatt 2000; Jones et al 2011) Comparing with large company’s international activities, small and new ventures need to depend on network relations and personal contacts in their internationalization process due to their constraints in financial resources, human resources, etc (Oviatt and McDougall 1994; Manalova et al 2010). Extant research is still deficient in the following aspects: first, different types of network’s influence on born global companies is still under research, contrast to domestic new ventures, networks of born global companies are extended in geographic locations, the question of what different roles of network embedded domestic and abroad have played in born global internationalization needs further analysis. Does any difference exist in utilizing different types of networks to facilitate firms internationalization between born global company set up by entrepreneurs with international background and others without international background? By applying multiple case study research method, the paper conducts a comparative analysis about the network type, feature and how they facilitate born global companies to acquire resources. What government needs to do is supporting enterprise to join more international trade exhibitions or fairs and helping them to set up more platforms to build up network relations for effective international activities
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