Born to go far: analyzing how emerging economy born globals make strategic changes toward internationalization

Abstract

PurposeThis study aims to investigate the drivers of the internationalization scope of born global from the digital and software solution sector in an emerging economy context, which presents an unexplored avenue of research. This study endeavors to understand the individual and market-level drivers of internationalization scope. Relying on the effectuation and causation framework and reactive/proactive driver typology, this paper sheds light on the individual decision-maker’s makeup and market conditions that influence the changes between strategies in the internationalization process.Design/methodology/approachA qualitative multiple case study approach is used to explore drivers of the internationalization scope of born globals. Seven born globals from the digital and software solution sectors were depicted, and interviews with their founders were conducted.FindingsStudy findings support the utilization of effectuation theory in explaining the scope of internationalization of born globals. Furthermore, the findings attest that the two decision-making logics are interchangeable. On the market level, several context-specific factors have stirred the diversity of markets pursued by born globals. The findings evince that the founders of the born globals perceive the domestic market as small and underdeveloped; therefore, they seek more developed, easily accessible, distant markets.Originality/valueThe study contributes to a better understanding of the internationalization of born globals in an emerging economy context. We find that born globals change their strategies iteratively with the stage of internationalization.