Born Global Research Articles

How do Market Orientation and Learning Orientation Impact on Born Global Firm Performance? The Synergistic Effect

The purpose of this study was to examine how Market Orientation (MO) and Learning Orientation (LO) influence the international performance of born global firms and to enrich the existing literature with empirical evidence from an emerging country context, Sri Lanka, yet an inclusive research area. The findings of the study were analyzed using 225 ICT export entrepreneurs in Sri Lanka, and the hypotheses were tested using structural equation modeling. The findings reveal that MO and LO significantly influence the international performance of born global firms, and further, it found that LO mediates the MO-Performance relationship, confirming the synergistic effect. The paper then discusses the managerial implications of the findings of the study.

Role of governance on SME exports and performance

PurposeThis paper aims to investigate the effect of governance – a proxy for network effects on small and medium enterprises (SME) growth through access to new markets. Specifically, investigate how export intensity (EI) and performance are affected. This study also tests related theories, given the growth in the post-liberalization setting of a developing economy. Specifically, this study tests Uppsala and born global (BG) perspectives for internationalization and resource-based view for performance.Design/methodology/approachThe authors collect secondary data for each SME over a 20 year period from a growth-oriented developing economy – India. This period is after the liberalization of the Indian economy. Thus, the authors test the hypotheses in this context. The authors expect that exports would surge for SMEs given the governance structures considered. The authors consider several governance modes and two types of product classifications, namely, products and services.FindingsThe authors find conditional support for the two models – indicating that governance structures do not consistently support finding new markets. Further, given the governance structure, EI is not consistently a means to improved performance. This is contrary to the expectations. However, at the same time, the authors do find evidence that governance matters and affects products and services differently.Research limitations/implicationsWhile the authors conduct research in India which has a variety of cultures and state policies, the authors still believe comparative study with multi-country data from developing countries might bring further insights. Further, primary data would also help to understand governance and motivational effects (the authors did not consider the later). Implications: The authors believe the research will have implications for policy since the authors find effects of governance. Hence, specific policies that improve the performance of a governance type could be adopted.Practical implicationsAlthough SMEs are affected by many factors, the authors find significant effects for important variables. Hence, the authors believe the government could use the study to design proper policies so that new markets could be discovered through different governance forms, through strategic investment and capacity building.Social implicationsSMEs are a key part of the social fabric of a society/country. The work deals with how SMEs could be helped. Hence, the authors believe the work has important implications for society. Further, as the work deals with large firm-SME interfaces, the authors also inform how these different governance structures are performing and where attention is needed.Originality/valueThe authors find that certain governance-type and SME-type work well together. Further, networks through the governance structures help find new markets – depending on SME-type. The authors find partial support for the Uppsala model and also for the BG model, again depending on the SME-type.

Where Do Born Globals Come from? A Neoconfigurational Institutional Theory

Born globals, recently established firms that obtain a substantial share of their revenue from foreign markets, can help strengthen countries’ economic vitality and increase innovation levels. The extent of born global formation varies considerably across countries, yet it is unclear why this is the case. Drawing on the neoconfigurational institutional perspective, we develop a typology of institutional contexts associated with high born global formation rates. We posit that high rates of born global formation occur where institutional features favorable to border-spanning activities complement institutional features conducive to entrepreneurial activity, thus forming an institutional configuration that enables, equips, and motivates more societal members to launch born globals. Accordingly, we hypothesize a primary institutional configuration where international transaction facilitators, entrepreneurial educational capital, and entrepreneurial norms combine to propel born global formation. Further, we draw on the internationalization literature to propose two alternative types of institutional configurations conducive to born global formation. These two types provide functional substitutes for the primary type and are distinctly propelled by (1) escapism from low-quality public governance institutions or (2) immigrant entrepreneurship. Fuzzy-set qualitative comparative analysis on data from 66 countries supports our typology and illustrates why born global activity may thrive even in contexts with institutional weaknesses. Our study develops a neoconfigurational model to advance a holistic understanding of the born global phenomenon’s theoretical drivers, contributing to research on comparative capitalism and international entrepreneurship.

The use and knowledge of export promotion programs in the early internationalization of Brazilian SMEs

PurposeThis paper aimed to evaluate the differences in the use and knowledge of export promotion programs (EPPs) between Brazilian SMEs that internationalized early and SMEs that internationalized in a gradual, traditional fashion. Additionally, it tested hypotheses that distinguish these two types of SME internationalization processes in an emerging market context.Design/methodology/approachThe authors tested four hypotheses in a sample of 540 SME Brazilian exporters. The sample was divided into two groups according to the born global (BG) criteria: 379 SMEs with gradual or traditional internationalization (TI) and 161 SMEs with early internationalization (EI).FindingsThe results indicate that Brazilian EI SMEs operate in more countries and continents than TI SMEs. In emerging countries such as Brazil, the domestic market continues to play an important role both for SMEs that internationalize early and those whose process is slower. Even though logistic regression could not classify the sample of TI and EI SMEs according to their knowledge about EPPs, the results led to the idea that EI SMEs currently use more specific EPPs than do TI SMEs.Practical implicationsManagers of successful SMEs from emerging markets need to incorporate EPPs into their internationalization strategy. In emerging markets with large domestic markets, SME managers can meet their growth needs by exploiting opportunities in both domestic and international markets.Originality/valueResearch on the early internationalization of SMEs has long focused on SMEs from developed markets and on internal factors. Moreover, the effects of EPPs on the firm' performance of large and SME firms has also been the subject of study. The value of this paper relies on the intersection of EPPs and the early internationalization of SMEs, even for firms in developed markets.

Network market and entrepreneurial orientations as facilitators of international performance in born globals. The mediating role of ambidextrous dynamic capabilities

This paper aims to propose an integrating model that can explain firm international competitiveness through the dual lens of network and firm behaviour. The research examines the case of born globals (BGs) created during the last financial crisis in a sample of 306 Spanish BGs using structural equation modelling. Results show that in today’s highly competitive and dynamic globalised markets, developing strategic orientations (market and entrepreneurial) in a network context helps build an optimal antecedent interfirm environment. This environment channels values generated through joint efforts to strengthen an individual BG’s international performance. Capabilities play an essential mediating role to achieve this effect through the integrated application of dynamic capabilities and ambidexterity theories. Thus, exploratory (adaptation and absorption) capabilities will influence the capacity to exploit knowledge through innovation capability and lead to higher performance. Findings provide practical insights into the hierarchisation of the sources of influence on BGs’ performance.

Young aspiring globals (YAGs): early-stage strategies of knowledge-focused international entrepreneurs

PurposeThis study aims to explore the intention–action relationship of small and medium-sized (SMEs) firms with knowledge capital that declare their intention to internationalize from their inception.Design/methodology/approachThe authors apply the theory of planned behavior and hand-collect a database of Chinese born globals, purely domestic firms and traditional exporting firms. The authors’ hypothesis is that Chinese born globals [or young aspiring globals (YAGs)] will strive to acquire domestic and international patents at an early stage to institutionally protect their knowledge-capital via intellectual property rights as they enter the competitive global marketplace.FindingsThe results confirm that knowledge-focused YAGs apply for patents at an earlier stage than purely domestic and traditional exporting firms. However, in the long run, these firms are neither demonstrating increased knowledge capital by being more innovative nor producing more valuable innovations than their counterparts.Originality/valueThis study tests the intention–action relationship in the context of SMEs internationalization. It contributes to the internationalization literature by identifying the internationalization pattern of born globals (YAGs) from emerging markets and providing an explanation for what happens to these firms as they mature.

Impact of Institutional Support on Export Performance

This paper examines institutional support (financial and marketing support) on export-oriented firms’ performance or so-called born globals. We develop a model to address how financial and marketing support can help young entrepreneurial firms to overcome the liability of newness and smallness in gaining competitive capabilities. Using a quantitative method, data were collected from 217 manufacturers and service sectors in Malaysia, an emerging Southeast Asian market. The results suggest that government assistance in marketing leads to competitive capabilities and export performance; however, financial support neither contributes to competitive capabilities nor export performance. We found the significant role of competitive capabilities as a mediator in enhancing the relationship between marketing support and export performance. Practical implications drawn from this result can be offered as guidelines for the policymakers in supporting young entrepreneurs that lead to competitive capabilities and superior performance.

Hofstede’s Cultural Dimensions as a Moderator of the Relationship between Ambidextrous Learning and Corporate Sustainability in Born Global Firms

This research analyzes the moderation effects of Hofstede’s Cultural Dimensions (Power Distance, Uncertainty Avoidance and Indulgence) in the relationship between Ambidextrous learning and corporate sustainability in born global firms. The data were collected from exporting firms characterized by beginning international operations in the first three years and were thus classified as Born Global. A panel Dynamic Structural Equation Model (DSEM) was used to test the research hypothesis. One of the methodological contributions is the exploration of dynamic social behaviors that are difficult to study, specifically over time. Here, DSEM becomes in a data analysis technique that allows us to analyze this type of phenomena. The research results show that the relationship between Ambidextrous learning (AL) and Corporate Sustainability (CS) is positive in the short- and long-term. The cultural dimension’s Power Distance and Uncertainty Avoidance moderates the relation between (AL) and (CS) and this dimension can predict their inertia. However, while Uncertainty Avoidance has a moderating effect, it does not predict future behaviors. Published literature on the Born Global company. that includes the moderation of Hofstede’s dimensions (Power distance, Avoidance of uncertainty, and Indulgence) from a company perspective that study the relationship between Ambidextrous Learning and Corporate Sustainability is scarce.

What\u2019s so special about born globals, their entrepreneurs or their business model?

There is near unanimity among international business scholars that it takes more time to expand internationally than domestically. Hence, this is why some are puzzled by born globals (BGs), firms that make large foreign sales at birth or shortly afterwards. Explanations given for this “anomaly” are that BGs have exceptional resources—advanced technologies and a high international orientation on the part of their entrepreneurs, and that they rely on cheaper internationalization strategies like the Internet and networks. What is almost completely overlooked is the role of the BG’s business model (BM). We analyze the time it took for a sample of Italian SMEs to reach BG status (25% foreign over total sales) within a three-year time span. Entering both international entrepreneurship (IE) and BM variables, we find that, among the IE variables, a firm’s technological intensity, the number of years their founders studied abroad and their foreign language fluency, as well as their use of domestic networks, are statistically insignificant. Variables measuring a firm’s focus on a niche BM, on the other hand, are statistically significant, along with the international work experience of the founders, with the niche BM explaining a higher level of variance with greater accuracy.

Effects of the psychological characteristics of CEOS at the levels of business internationalization: the case of the born global in Latin America

The aim of this document is to analyze not only the relationship among orientation towards innovation, proactiveness, and risk tolerance, chosen by the literature as three of the most important psychological characteristics of CEOs, but also the export intensity in a special type of firms: the Born Global, characterized by being small firms that, before completing their first three years up and running, have already started international operations with more than 25% of their sales directed to international markets. The theoretical framework of the paper uses the Upper Echelons approach, which considers that the demographic and psychological characteristics of the management team end up being determinant in the results of the companies. A Binary Logistic Regression based on data from the Global Entrepreneurship Monitor in twelve Latin American countries in 2016 was used as the statistical analysis methodology. As a result, it is found that the orientation towards innovation, studied from product and process innovation, is determinant to achieve successful internationalization processes. In contrast, proactiveness and risk tolerance were found to be non-determinant. This implies that companies should take measures to decisively promote innovation and intra-entrepreneurship mechanisms within themselves, and thus facilitate their integration into international markets.

The Coextension of Food and Tourism Business Models

Based on a qualitative study of 46 small food enterprises, this article establishes a typology of 11 business models that capture value in different ways. The business models position the enterprises and their innovation endeavor in a continuum between tradition and modernity. The coextension with tourism value propositions is examined, and prospects are particularly immanent in the following business models, which are identified in the study: Food as experience, Value chain remodeling, Genuinely authentic, and Collaboration with the active prosumer. However progressively, tourism consumption can also be the driving force for: The trademark, the SDG profile, the VIP club, and Research-based food production. Three models offer less opportunity for food tourism: Re- and upcycling, Franchised growth, and Born globals. The study illuminates the plasticity of food production business models. The article contributes with insights for business actors and marketeers in food and tourism as well as for policy makers.

한국 본 글로벌 벤처기업의 기술혁신의 동인과 성과

한국 본 글로벌 벤처기업의 기술혁신의 동인과 성과

Incidence of cultural, economic, and environmental factors in the emergence of born‐global companies in Latin America

AbstractResearch SummaryThis paper examines the effect of key cultural and economic factors on the emergence of born‐global (BG) companies. Such factors include the intentions and the growth aspirations of the entrepreneur, as well as the country's characteristics in terms of its income per capita and the complexity of its economic system. The analysis also highlights how the environment affects the importance of the aspirations to be BG. Our work expands the literature on BGs in Latin America by analyzing macroeconomic aspects and specific features of the entrepreneur and the environment as possible determinants of BG character. The results reveal that the entrepreneur's intentions and aspirations, along with environmental factors and the economic growth in Latin America, contribute to a firm's probability of becoming a BG company.Managerial SummaryFirms that internationalize at an early stage of their life are known as born‐global (BG) companies. We analyze the influence that the key cultural factors of a company have on the creation of BG companies. Such factors include the entrepreneur's intentions and growth aspirations, in addition to various economic and environmental factors. The findings show that individual factors, in combination with economic growth, play a more important role than those factors related to the entrepreneur's innovativeness and the level of knowledge intensity associated with a country's export basket.

Internationalization Behavior of Biotech Firms Producing a COVID-19 Vaccine

The purpose of this research is to explore the internationalization behavior of BioTech firms producing a COVID 19 vaccine using the Born Global internationalization model as a conceptual framework. The research methodology that has been considered in this study is a qualitative, multiple-case study to gain valuable insight about the internationalization behavior of BioTech firms producing a COVID 19 vaccine, and how and why these BioTech firms internationalize. Secondary data was collected via various websites, the BioTech firms’ official websites, through corporate documents, press releases, published articles, journals, and annual reports. The data analysis disclosed four themes to answer the research questions. The findings from the qualitative analysis, suggest that BioTech firms producing a COVID-19 vaccine use the combination of multiple market entry modes and expansion strategies to internationalize. The first limitation of this research is the sample size used in the multiple-case study. Secondly, although most of the information was from the websites of the firms in this paper, other sources were also used and that could raise the issue of quality and trustworthiness. There is a call for further research to explore the internationalization process, behaviour, and patterns of BioTech firms producing a COVID-19 vaccine using different methodologies, sample size, the industry, and firms from other continents to close the gap.

Análisis de las Born Global en Colombia: Pequeñas y medianas empresas del Departamento de Córdoba

Young companies or Born Global, have had a significant impact on the new dynamics of the internationalization of the economy. The objective of this article is to analyze Born Global within the Colombian business context, and in attention to the factors and strategies that may be applicable in small and medium-sized companies in the department of Cordoba. This descriptive-analytical research, supported by sources consulted in the database and by some empirical studies at an international and national level, emphasizes the factors and strategies that can be applied to young companies in Cordoba, which are 82, 7% of the total, and about their innovation and competitiveness in general. The results obtained show that the Cordovan region presents a very low level of export competitiveness or sophistication, when compared to the other departments of the country, therefore, the Born Global in Cordoba, must potentiate their capacities, skills and resources towards greater competitiveness in the global market. It is concluded that these companies must consider the characteristics of the entrepreneur, entrepreneurial cognition, knowledge factors, technology and innovation, business capacities and technological networks, to conquer new markets at an international level.

How Does Managerial Experience Predict the Internationalization Type of a Young Firm?

This study aims to find out how useful managers' past general and export experience is in predicting whether young manufacturing firms become fast internationalizers. Extant literature about the role of managerial experience in determining young firms' internationalization type is scant. This paper fills this gap by providing systematic evidence on which kinds of general and export experience can be used for accurate predictions of two firm types: born globals and general fast internationalizers. Our dataset encompasses information about managerial experience of the whole population of young Estonian manufacturing firms. Based on using four different prediction methods (logistic regression, rough sets, decision tree, neural networks) and a large variety of variables reflecting managers' past experience, the results indicate that in prediction models, export experience variables are more valuable than general experience variables. Born globals can be predicted with an accuracy of at least 90% in case of all applied machine learning methods, while the precision is lower in case of general fast internationalizers. The study leads to important implications for international business theory and practice.

Bia Brazil: Activewear Made in Brazil to the World

ABSTRACT This teaching case presents the company Bia Brazil, one of the leading Brazilian exporters of activewear, founded in 1994 by a former gymnast, Beatriz, with websites in Portuguese, English, and Spanish. In 1996, the first exports to Costa Rica took place. Over the years, the company has expanded its sales to over 40 countries. The company seeks the constant offer of new products that meet the requirements and demands of each country. Despite its international growth, the company’s presence in the Brazilian market remains small. There have been two failed attempts at physical stores, and although it continues with only online sales in the domestic market, the entrepreneur seeks a model to grow inside Brazil. We recommend the use of the case in courses related to internationalization, more specifically to International New Ventures and Born Globals. Some connections with other classes can be made and are recommended with the case analysis.

The entrepreneurial journey of a global start-up: the case of the open innovation platform GrabCAD

Understanding the entrepreneurial journey has become essential for both start-up entrepreneurs and policymakers within the ecosystem of technology start-ups, functioning as engines of growth in new economies and exports. Often, they are born global (BG) high technology small firms (HTSFs). The entrepreneurial journey, often used as a metaphor in the literature on entrepreneurship, has been subject to attempts to define it theoretically as a research concept, even though there are practically no empirical approaches. This paper aims to overcome the gap in disclosing the entrepreneurial journey and seeks to shape the features of a hi-tech start-up reaching global open innovation (OI) platform, based on the example of GrabCAD. This entails, based on this particular case study of finding proof of theoretical journey patterns, as well as analysing aspects that have not yet been addressed. An analysis of the GrabCAD case demonstrates the importance of the combination of different actors and features shaping the entrepreneurial journey.

FACTORS INFLUENCING THE INTERNATIONALIZATION PROCESS OF BRAZILIAN BORN GLOBAL COMPANIES

This study aimed to identify factors that influence the internationalization of Brazilian born global companies (BGs). The studies on the theme of internationalization have been developed in a specific area and have continuously refined themselves as a theoretical field of high relevance and prominence. These researches seek to follow the speed and changes of international business, especially the studies that focus on the phenomenon of accelerated internationalization or as called, Born Global. A search was carried out – in the annals of events (EnAnpad and Semead), Brazilian international business journals, and at Google ScholarTM – to identify empirical studies on the theme "internationalization of Brazilian born global companies." The results found point to a diversity of factors that can influence BG companies' internationalization process, such as networks, geographic location, product differentiation, intensive use of technologies, and product innovation. However, the most relevant issue (and that demands new specific studies) is the "profile of the entrepreneur" as a factor of significant influence in the internationalization of the Brazilian BGs.

Is “Born Global” a Viable Market Entry Mode for the Internationalization of SMEs? Evidence from China before COVID-19

ABSTRACT This study considers whether “born global (BG)” status aids the financial performance of small and medium-sized enterprises (SMEs). Using panel regression models tracking Chinese listed companies, it finds a positive relationship between use of the BG model and firm performance. Also, that location influences firms, particularly those from the epicenter of the COVID-19 outbreak, which are more likely to choose BG as their international market entry mode. The study also finds that research and development investment is important for BGs, size is less so. These findings may aid economic recovery after COVID-19.