In this paper we explore internationalization and export growth over time in a sample of 135 small manufacturing firms. By using concepts and arguments from literature on international business and small firms. the paper identifies six situational, or contingency, factors that are expected to influence the international activities of small firms. Our results show that a dynamic and fast-changing environment may push small Jrms to go abroad, while it seems to be the experiences built up in the organization and a younger generation of CEOs that can explain why some small firms continue to expand their international activities. The findings suggest that the factors influencing small firms to go abroad and become international difler fmm the factors that influence them to continue and grow once they are on the international marketplace. The paper ends with a discussion of the findings, together with suggestions for further research. Risumk Dans cet article, nous analysons, a partir d'un ichantilion deI35 petites firmes manufacturiires, I 'impact, au fil du temps, de l'intemationalisation et de la croissance de l'exportation. Grdce a l'utilisation des concepts et d'arguments tiris de la littirature sur le commerce international et sur les petites entreprises, nous digageons six facteurs situationnels et conjoncturels qui sont censis avoir un impact sur les activitis internationales des petites entreprises. Nos risultats indiquent qu 'un envimnnement dynamique et en mutation rapide peut &re a 1 'origine de 1 'internationalisation des petites entreprises. Bien plus, les experiences acquises dans 1 'organisation et le rajeunissement des cadres expliqueraient pourquoi certaines petites entreprises continuent a itendre leurs activitis internationales. Les risultats montrent aussi que les facteurs qui poussent les petites entreprises a s'exporter et a s 'intemationaliser sont diffirents de ceux qui les poussent b continuer a croitre une fois qu'elles sont sur le marchd international. Nous bouclons notre itude par une analyse des risultats et une proposition des pistes de recherche futures. Small firms are becoming increasingly international. Small firms are reported to contribute 25 to 35% of world exports of manufacturers, and about one-fifth of manufacturing small firms receive between 10 and 40% of their turnover from cross-border activities (OECD, 2000). The authors thank "Lars Erik Lundberg's stillelse fir forskning w h utveckling" and Halmtad University for financial suppon. Addms correspondence to Svante Andersson. SlRuHalmstad Univeresity, P.O. Box 823. S-301 18 Halmstad. Sweden. E-mail: svante.andersson@sct.hh.se 8 ASAC 2004 22Moreover, small firms seem to get into the international scene at a much earlier age than before, and they are also more actively pursuing strategies that involve international activities (Knight
No abstract
PurposeThis study aims to investigate how mature born global firms create value for customers to achieve continued international growth.Design/methodology/approachThe study employs a case study approach to investigate the under-researched area of how mature born globals create value for customers and, by doing so, contribute to their continued international growth. This in-depth examination of how three born globals developed over time uses interviews, observation and secondary data.FindingsThe findings indicate that the entrepreneurs of born global firms, that continued to grow, created a culture in the early stages that supported value creation for foreign customers. These firms have built a competitive position by developing international niche products. They have also implemented a combination of proactive and reactive market orientation to facilitate the creation and delivery of value to customers. To maintain growth, they further invest the revenues earned on additional international marketing activities and continuously enhance their focal products.Research limitations/implicationsThe study relies on three cases. We therefore recommend that future studies extend the scope of the research to several companies in various industries and countries, in which the theoretical arguments can be applied. In addition, further studies that test the propositions developed in this study, in different contexts, are highly recommended.Practical implicationsTo gain international growth, managers should create an organizational culture that facilitates satisfying international customer needs. Firms should continuously invest in sales and market development (e.g. social media marketing, personal selling) and undertake technology development of niche rather than new products. To achieve international growth, managers need to standardize part of the offer to achieve economies of scale and adapt the other part to international customers' needs.Originality/valueResearch on born globals has focused on the early stages of their internationalization processes, while largely neglecting the later stages (mature born globals) or the factors that lead to continued international growth. To address this gap, this study explores what happens when born globals ‘grow up’. This study contributes to the literature by capturing the factors and processes underlying how mature born globals create value for customers, for international growth. In particular, the study shows that the culture and strategies developed in the born globals' early stages also lead to international growth in later stages. The mature born globals have also invested in niche products, brand building, and effective market channels and adopted a combination of proactive and reactive market orientations.
Since the beginning of the 1990s studies of Born Global companies has become a major topic in internationalization literature. Earlier research has pointed out the importance of the entrepreneur in the born global firm's international development. Even if many studies have been done which identify the impact of entrepreneurs and management on firms' internationalisation and behaviour few studies have focused on leadership in Born Global Companies. Following earlier research, the aim of this paper is to investigate how the entrepreneur uses his/her vision in Born Global companies. The main findings and conclusions are that the entrepreneur and his/ her vision have an important role in these companies. The vision is like an umbrella and affects many important parts of the company, such as organisation, communication, recruitment, knowledge transfer and other parts that will form the company's culture. The born global entrepreneurs create the company values and motivate the employees in the organisation. The Born Global leaders share the power with subordinates. It is crucial to delegate operational decisions to subordinates so the entrepreneur can work with strategic issues fostering the firms' international expansion. Communication is open and straight with an open atmosphere in the culture. Good communication is important when building goals, values and conveying the leader's vision. Even if the entrepreneurs motivate their employees in a positive way the entrepreneurs still have a tight control of the company. The main implications from this study are that the entrepreneurs in The Born Global firms have been able to create an innovative culture in the firm that creates international growth.
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