Global Startup Research Articles

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This article discusses reasons for various American startup companies to shift abroad for funding and production, and their impact on the American business scenarios. Founders are accepting funding from overseas investors, setting up supply chains in different parts of the world, servicing customers internationally, and even selling their businesses to foreign government-backed funds. Although the idea of losing American inventions and technologies to international investors and buyers is not generally good for public relations, the current landscape of global startup development has winners on both sides, and overseas involvement in US companies does not necessarily mean a net loss domestically. The US government must find a way to move the US economy forward, preventing predatory pricing and mercantilist practices by exporters while at the same time reaping the international flow of ideas and funds that power innovation. The experts believe that ignoring the rest of the world would not only limit the growth potential of US startups, but over time would reduce America’s global leadership in innovation.

Cities and Entrepreneurs Over Time: Like a Horse and Carriage?

Entrepreneurship, being largely an urban phenomenon, co-evolves over time with cities. While this relationship is like a 'horse and carriage', it is not a straightforward one, more akin to 'love and marriage'. In this paper I explore the co-evolution of entrepreneurship and cities. First, I provide a stylized model of development wherein the rise of cities (urbanisation) is the outcome of the activities of entrepreneurs. Second, I provide a stylized overview of entrepreneurship and cities from earlier to later stages of development. In young cities a challenge for establishing an entrepreneurial ecosystem is the provision of infrastructure for business' connectivity and energy. Good urban planning and management skills, including urban policing and dealing with land disputes, may be amongst the most sorely needed in the emerging world today. At more intermediate and later stages of development, cities can become entrepreneurial hotspots and even 'global startup cities'. Three main challenges during these stages, as far as the role of entrepreneurs are concerned, relates to (i) rising property prices and rents, urban congestion and fierce business competition, (ii) environmental sustainability and (iii) the impacts of technology that could make centralization in cities for business purposes unnecessary. Entrepreneurs have important roles to play as property developers and in the creation of new business models and new markets. They can be the drivers of 'smart' cities, 'circular' cities, and of sub-urbanisation and secondary city growth. Over time not all cities, and their entrepreneurs, will necessarily continue to grow and prosper. There is nothing inevitable in the rise of any particular city and the prosperity of its entrepreneurs. Cities do not only generate, they also degenerate. I conclude that the heterogeneity, serendipity and context-specificity of global urbanisation implies that there is much that is still unknown about the specifics of the relationship between cities and its entrepreneurs over time.

Identifying the Characteristics and Performance of Born Global Startup in Korea

Identifying the Characteristics and Performance of Born Global Startup in Korea

글로벌창업기업의 성과지표 개발에 관한 연구

글로벌창업기업의 성과지표 개발에 관한 연구

Global Start-Up Communities

Although economic globalization has transformed contemporary conceptions of space, location still matters enormously for both individual entrepreneurs seeking to develop a sustainable business and policy makers looking to foster entrepreneurship within a particular city or region. In making the decision where to locate, what factors does an entrepreneur need to consider? What type of region offers a young firm most support in developing innovative products or services necessary to succeed today? And what capacities should government and policy makers be looking to develop in order to ensure that multiple startups decide to start operations in their particular region?This paper focuses on three “success conditions” that we believe are important in assisting entrepreneurs and governments in building successful startups and flourishing startup communities. First, it is important to understand the main risks facing startup ecosystems, notably skepticism, theatre and scaling. Second, the local character (or “Local DNA”) and path dependencies of a region are crucial. Finally, all startup communities need to develop strong links with resources that exist at a global level.

EO-Performance relationships in Reverse Internationalization by Chinese Global Startup OEMs: Social Networks and Strategic Flexibility.

Due to the context-sensitive nature of entrepreneurial orientation (EO), it is imperative to in-depth explore the EO-performance mechanism in China at its critical, specific stage of economic reform. Under the context of “reverse internationalization” by Chinese global startup original equipment manufacturers (OEMs), this paper aims to manifest the unique links and complicated interrelationships between the individual EO dimensions and firm performance. Using structural equation modeling, we found that during reverse internationalization, proactiveness is positively related to performance; risk taking is not statistically associated with performance; innovativeness is negatively related to performance. The proactiveness-performance relationship is mediated by Strategic flexibility and moderated by social networking relationships. The dynamic and complex institutional setting, coupled with the issues of overcapacity and rising labor cost in China may explain why our distinctive results occur. This research advances the understanding of how contingent factors (social network relationships and strategic flexibility) facilitate entrepreneurial firms to break down institutional barriers and reap the most from EO. It brings new insights into how Chinese global startup OEMs draw on EO to undertake reverse internationalization, responding the calls for unraveling the heterogeneous characteristics of EO sub-dimensions and for more contextually-embedded treatment of EO-performance associations.

The Emergence of the Lean Global Startup as a New Type of Firm

This article contributes to the interplay between international entrepreneurship, innovation networks, and early internationalization research by emphasizing the need to conceptualize and introduce a new type of firm: the lean global startup. It discussed two different paths in linking the lean startup and born-global internationalization strategies. The first path refers to generic lean startups that have undertaken a rapid internationalization strategy (i.e., lean-to-global startups). The second path refers to startups that have started operating on global scale since their inception and adopted the lean startup approach by seamlessly synergizing their global and lean product development activities. The article emphasizes several aspects that could be used as part of the theoretical foundation for conceptualizing lean global startups as a special new type of firm: i) the emergent nature of their business models, including the challenges of partnership development on a global scale; ii) the inherently relational nature of the global resource allocation processes; iii) the integration of the entrepreneurial, effectuation, and global marketing perspectives; iv) the need to deal with a high degree of uncertainty, including the uncertainty associated with cross-border business operations; and v) linking the ex-ante characteristics of lean startups with the ex-post characteristics of born-global firms in order to develop a technology adoption marketing perspective that considers the “crossing the chasm” process as a successful entry into a global market niche. A scalable startup typically requires a local population >100 million people. If your country doesn’t have that, you need to be born global. Your country/industry needs a ‘go global’ playbook.

The Emergence of the Lean Global Startup as a New Type of Firm

The Emergence of the Lean Global Startup as a New Type of Firm

The Effect of Online Entrepreneurship Education on the Global Start-up Entrepreneurship

The Effect of Online Entrepreneurship Education on the Global Start-up Entrepreneurship

‘Reverse internationalization’ in Chinese firms: a study of how global startup OEMs seek to compete domestically

This research investigates whether the global startup original equipment manufacturers (OEMs) in China could employ their knowledge-acquisition capability developed via internationalization to compete domestically (i.e. reverse internationalization), facing the recession in developed markets. Results examine that knowledge-acquisition capability can help these firms compete in ‘reverse internationalization’, while the conduct of own brand strategy partially mediates the positive relationship between their capability and domestic performance. We contribute to the literature by identifying the unique ‘Chinese global startup OEMs’, recognizing knowledge-acquisition capability as a high-order dynamic capability for such firms, and introducing a novel entrepreneurial phenomenon we call ‘reverse internationalization’.

LEAN AND GLOBAL TECHNOLOGY START-UPS: LINKING THE TWO RESEARCH STREAMS

In this paper, the authors introduce the concept of the lean global start-up (LGS) as a way of emphasising the problems for new technology start-ups when dealing separately with business development, innovation and early internationalisation. The paper has two components — an introductory conceptual part and an empirical part that should be considered as basis for the preliminary validation of the conceptual insights. The research sample includes six firms — three from Canada and three from Denmark. Two different early internationalisation paths have been identified: Lean-to-global (L2G start-ups) and lean-and-global (L&G start-ups). Both types of start-ups were found to have faced significant problems with the complexity, uncertainties and risks of being innovative on a global scale. They have however found ways of addressing these problems by a disciplined knowledge sharing and IP protection strategy and the efficient use of business and supporting and public funding mechanisms. The Danish firms have pivoted around the ways of delivering their value proposition and not around the specific value propositions themselves. The Canadian firms have actively pivoted their value proposition motivated by the degree of innovativeness of their products and the insights from business supporting organisations. The analysis of the results justifies the introduction of the LGS concept and opens the opportunity for future research focusing on the articulation of more practical LGS entrepreneurial frameworks.

Innovative startups in 2014

Ge rm an y Fr an ce UK US 2 saw a stronger presence of non-US companies on our list of innovative startups receiving the largest A rounds (Table 1). Although Cambridge, Massachusetts, continues to be well represented (four startups on the list), four financings went to non-US firms, up from just one in 2013. The United States continues to dominate the global startup scene (Fig. 1), although the United Kingdom, with 14 A rounds, is resurgent (4 companies in 2012; 10 in 2013). The average size of an A round in Switzerland (~$21 million) is greater than anywhere else in the world, including the United States (Table 2).

How European Governments Support European Start-Ups in Silicon Valley

The recipe for the creation of Silicon Valley is not clear nor easy. But it’s clear from the results that something big is happening here. How Silicon Valley became that critical in the global startup ecosystem? How can Europe be part of this innovation catalyzer? The European Governments have a clear strategy: building a “two-way bridge” supporting startups in both ways (going to Silicon Valley and coming back to Europe). This does not only offer a cutting-edge service for European startups, but also is remarkably improving the European innovation ecosystem avoiding the uncontrolled “human capital (and startups) flight” and attracting international capitals in Europe.

How Perceptions of the Global Economic Slowdown Impact and Local Risks Adversely Affect Perceived Opportunities and Subsequent Startup Activities

The Great Recession which began in 2008 is the worst global recession since World War II. Arguably, this global economic slowdown began with failures in financial regulation and housing policies. Undisputable are the adverse effects of this global financial crisis. Worldwide wealth was destroyed. Unemployment rose precipitously. Small businesses and medium businesses found it difficult to access funding sources. Large businesses reduced investments. However, little has been empirically established regarding the effects of the global slowdown on entrepreneurial startups. This study applies a cognitive lens to examine the effects of the perceived global slowdown impact along with the effects of perceived local risks on startup activities when mediated by perceived opportunities. All hypothesized relationships are found to be significant. Equally important, perceived opportunity is found to fully mediate the relationship between perceived global slowdown impact and startup activity. It is also found to partially mediate the relationship between perceived local risks and startup activities. Hence, this manuscript establishes the basis for beginning to understand how the perceived global slowdown impact is relevant for global startup activity.

Q&A. What Does a Global Startup Need to Know to Enter China?

Q. What does a global startup need to know to enter China?A. With the continuous change of business environments and a competitive global economy, companies cannot afford to ignore international markets. The dependency of nations around the world on each other’s products and services has raised awareness among companies of the need for a more global outlook in their approach

Q&A. What Does a Global Startup Need to Know to Enter China?

Q. What does a global startup need to know to enter China?A. With the continuous change of business environments and a competitive global economy, companies cannot afford to ignore international markets. The dependency of nations around the world on each other’s products and services has raised awareness among companies of the need for a more global outlook in their approach

SenseHere: a born global start-up based in the UAE

Subject area Management, strategy, entrepreneurship. Study level/applicability MBA, executive education. Case overview The case deals with the challenges of fundraising and location decision making for a high technology start up company based in the United Arab Emirates. Tan Rasab is a Chief Executive and co-founder of Sensehere, a high technology start up company involved in the design and development of semiconductors for wireless sensors. The company has developed a unique technology that allows sensors to dramatically reduce energy consumption and thereby improve battery life of sensors.The company is currently based in the UAE, where it finds the environment highly supportive overall but challenging from the point of view of fund raising. On the other hand in China the company is meeting significant investor interest and several partnerships have been concluded. Despite the advantages offered by the UAE environment, the company is considering moving some or all of its operations to China. Expected learning outcomes Familiarise students with the challenges of fundraising for new ventures. Understand the implications of technological breakthroughs in different application areas. Develop an understanding for the different considerations to be made when choosing a location for business functions. Supplementary materials Teaching notes.

A study of optimising the regional infrastructure for higher education global start-ups in Wales

The objective of this paper is to provide an historical context for the support that was available for the internationalisation of higher education global start-ups at the time of the GlobalStart project. This includes the essential and desirable support mechanisms provided at the time in the Wales region for global start-ups involving a number of activities, taking into account the regional support infrastructure. Regionalisation, the system view of support, a pathways perspective on global start-up support and the client experiences of support pathways are explored. From the analysis of the political dimension of regional support for global start-ups, suggestions of relevance to optimise the regional support infrastructure for global start-up companies are made.

Knowledge and networks in the global startup process

This paper focuses knowledge and networks in the global startup process of science-based ventures. A global startup process is a process of organisational emergence in which ventures engage in the exchange of knowledge, information and other resources with international contacts, to recognise opportunities for business, and prepare for the exploitation of these activities on the global market. We examine how knowledge-related needs change during the global startup process in terms of classification, function, network composition and interaction patterns. We formulate propositions to guide founders in their global startup process in building on theoretical insights and examples.

Born globals: how to reach new business space rapidly

The born global start-up lacks resources compared to the requirement of reaching world markets. Further, the extant internationalization theories may not be adequate to indicate viable channel alternatives for born globals. The conventional way of pledging personal assets, raising resources, and expanding internationally is definitely slow and this adds to the usual business risks. Thus, the major imperative emerges that the born global must utilize large channels provided by MNCs, networks, and/or the Internet to receive substantial revenues and cash flow rapidly. These channels also provide learning, technology, and evolutionary growth. Examples of the performance of born globals, with relatively similar products, originating from Israel and Finland are used to elaborate. Also, the managerial implications for born globals, and future research areas are brought out.