Behavioral patterns in born-again global firms

Abstract

Purpose – The purpose of this paper is to identify factors that influence so-called born-again global firms’ internationalization behavior. Specifically, this article explores the following questions: why do mature, domestically focused firms suddenly turn into born-again global firms, how do they do so and what elements are needed for born-again global firms to be sustainable. Design/methodology/approach – Using an established international entrepreneurship model as a starting point, we extract relevant factors for a conceptual framework on born-again global firms’ internationalization activities. Case study research among a cross-sectional sample of born-again global firms is being applied for that purpose. Findings – Driven by the insufficient size of their domestic market, born-again global firms typically embark on internationalization after a generational change at the chief executive officer level. Throughout their internationalization journey, they flexibly adapt toward new needs of their foreign environments. Due to their idiosyncratic characteristics, born-again global firms deserve consideration as a separate group of research objects in the field of international entrepreneurship. Research limitations/implications – The investigated sample of case study firms was drawn across a variety of industries. As such, industry-specific conditions could not be observed and the findings from case study research run the risks of being generalized too broadly. In addition, the accuracy of the case study results may suffer from a certain degree of hindsight bias as the internationalization event took place in the past. Practical implications – Openness to learning from other markets and the flexibility to modify products according to client needs strengthen born-again global firms’ competitiveness. To endure, born-again global firms have to be innovative in adapting to changes, which makes it easier for them to launch their products in new markets. Originality/value – To date, international entrepreneurship has focused on the activities of small and newly established firms, largely neglecting the behavior of somewhat larger and established firms in traditional sectors. This study shows that established companies can exhibit the same innovative, proactive and risk-seeking behavior across borders as new ventures do. Despite their strongly rooted structures, strategies and cultures, born-again globals can flexibly adapt to new environments.

A Novel Measurement of Speed in Early Internationalization of New Ventures

“…In the internationalization literature; speed refers to the length of time in which a firm achieves the degree of internationalization (Hilmersson & Johansson, 2016;Hilmersson, 2014;Jörgensen, 2014;Casillas & Acedo, 2013). Another definition made by Schueffel, Baldegger and Amann (2014): "Speed refers to the length of time within which certain target or result is achieved. It thus generally refers to a quotient with an indicator of time in the denominator.…”

What Is Going on with the Research into the Internationalization of Small and Medium-Sized Enterprises (SMEs)? An Intellectual Structure Analysis into the State-of-the-Art (1990–2018)

“…Whereas SMEs are characterized by their lack of resources and their difficulty to access them, globalization, technology and the information revolution have enabled SMEs to commit to international business. Thus, literature on SME internationalization has spawned areas of research mainly focused on drivers or enablers that help SMEs [20], specific barriers that SMEs have to face [40] and different patterns or pathways to gain access to international markets [41].…”

“…In a similar vein, the concept of born-again global also features in research. According to Schueffel, Baldegger and Amann [41], a born-again global concept conveys the fact that a firm focused on the domestic market decided to make a strategic decision and transform into a globally focused company. Some authors state that the incident that triggers the internationalization process is a change in ownership and/or management, a management buyout, and a takeover by another firm or an administrator, which then triggers the internationalization process [70].…”

A BORN-AGAIN GLOBAL FIRM:INÉS ROSALES SOCIEDAD ANÓNIMA UNIPERSONAL (SAU)IN THE TRADITIONAL SECTOR OF PASTRY PRODUCTION

“…In fact, these firms apply multiple formulas of international relations, which are simultaneously compatible with each other and encompass from the companies’ own marketing channels, through alliances with large distributors or retailers, commercial agents, individual distributors or even franchisees, to establishing subsidiary firms in highly consolidated markets (Solberg 2012; Schueffel et al . 2014) 4 . These enterprises enjoy sales-associated scale economies in various markets at the same time; this allows them to increase their sales and reduce their costs per unit.…”