International new ventures: revisiting the influences behind the ‘born-global’ firm

Abstract

There is a small but theoretically important literature on ‘born-globals’ or international new venture firms that positions itself in contrast to the more established sequential international entry literature. In this paper we examine the pattern of entry into international markets for a set of international new ventures and show that they need not be a distinct breed of firms, as previous research has portrayed. Absent a specific technological advantage, the decision for a new venture to internationalize at inception is influenced by the size of its home market and by its production capacity, as well as by cultural and economic forces that also influence other more traditional firms that stage their entry into international markets. Most importantly, we demonstrate that the decision to internationalize or not should be considered jointly with the capacity allocation decision to specific international markets, as analysing these separately may lead to biased results. Journal of International Business Studies (2007) 38, 1113–1131. doi:10.1057/palgrave.jibs.8400308

Beyond categorization: New directions for theory development about entrepreneurial internationalization

“…Studying Canadian ''born global'' firms, Sui and Baum included only smalland medium-sized enterprises that exported within two years of start-up and had achieved at least 25% of sales to ''global (non-US) markets'' during the first year of export activity (Sui & Baum, 2014, p. 828). Studying firms in the passenger airline industry, Fan and Phan define a ''born global'' firm as ''one that allocates at least 20% of its inaugural production capacity to international markets at inception'' (Fan & Phan, 2007, p. 1116. Moreover, many firms labelled ''born global'' exhibit little international diversification with respect to geographic, economic, institutional and cultural diversity, and so may experience little of the often considerable challenges associated with such diversity (Verbeke, Zargarzadeh, & Osiyevskyy, 2014).…”

“…For example, Baker, Gedajlovic and Lubatkin (2005) develop a conceptual framework describing how and why processes underlying the pursuit of entrepreneurial opportunities vary across countries. In empirical research, scholars have shown that environmental-level factors explain patterns in the internationalization of young firms (e.g., Fan & Phan, 2007;Fernhaber, Gilbert, & McDougall, 2008;Mudambi & Zahra, 2007) and that institutional features influence the types of opportunities pursued by entrepreneurs and their capital providers, as well as how they are pursued (e.g. Ault, 2016;Bowen & De Clercq, 2008;Guler & Guillén, 2010).…”

Instant Internationalization of Emerging Economy New Ventures: The Evidence of a Family-Owned Venture from Moldova

“…Given that INVs "...have no prior corporate history in the industry, and hence no prior market presence" (Fan andPhan, 2007: 1114), one may expect the behavior of INVs in the early years of their existence to be shaped substantially by the liability of newness (Stinchcombe, 1965) and the liability of foreignness (Zaheer, 1995). From the institution-based view, 4 legitimacy is viewed as playing a key role in overcoming the above liabilities and concerns in…”

Marketing Strategies of “Born Globals” Companies when Entering the Foreign Market

“…Many authors have dealt with this issue such as Fan et al (2007), Knight et al (1997), Madsen et al (1997) or e.g. Kandasaami (1998), Hashai, Tamor (2004), Sharma, Blomstermo (2003).…”