Turning point: when born globals enter post-entry stage

Abstract

The literature on firms’ early internationalization includes a huge number of studies investigating the entry stage of companies, while works on the post-entry growth and survival have recently been increasing. In this context, this study aims to better explain which factors determine the evolution of born globals (BGs) during their lifecycles. The authors analyze the growth processes of six Italian manufacturing BGs at different stages of their development, with a particular focus on the transition of the venture from entry to the post-entry stage. The findings show that the entrepreneurial capabilities of the founders have a crucial role during the first international expansion of the companies. As BGs enter the post-entry phase, a trade-off emerges between entrepreneurial capabilities and some specific firm resources aimed at achieving the sustainable growth of the company. Moreover, the authors identify the existence of a turning point when companies switch from the entry to the post-entry stage. During this phase, entrepreneurs manage a process to transform their individual capabilities into an organizational knowledge base. Future research areas and managerial implications are discussed

How does internationalization begin? The role of age at entry and export experience in the early stages of the process

“…Age at entry is therefore considered to be significant for explaining both export volume and intensity. However, it would appear that, after an initial phase, these firms begin to adopt what could be described as a gradual development process in which learning (experience) becomes more important than the characteristics of the initial internationalization strategy, as our post hoc analyses have shown (Romanello & Chiarvesio, 2017). Thus, the effects of the variables change as the international life of the firm progresses.…”

How Do Rapidly Internationalizing SMEs Learn? Exploring the Link Between Network Relationships, Learning Approaches and Post-entry Growth of Rapidly Internationalizing SMEs from Emerging Markets

“…Social learning has been found to arise from misfortunes and mistakes, giving rise to trial-and-error knowledge acquisition, where learning is through the consequences of previous actions (Chandra 2017). Romanello and Chiarvesio (2017) and Tuomisalo and Leppaaho (2019) identify that entrepreneurs transform their organizational knowledge capabilities through applying trial-anderror approaches during the initial, entry, and post-entry stages of new market entry. Trial-and-error learning also plays a crucial role in the exploitation of product and market knowledge (Bingham and Davis 2012).…”

“…Throughout the cases, it emerged that self-learning or trial and error approaches not only provide product and market knowledge but can aid internationalization knowledge. Consequently, self-learning and trial and error approaches are important for product development, geographic expansion, and superior performance in foreign markets (Romanello and Chiarvesio 2017;Tuomisalo and Leppäaho 2019). This suggests that:…”

Permanência no Exterior e Renovação Estratégica de uma Born Global Digital de Mercado Emergente: um Estudo de Caso

“…As post-entry is a crucial moment for survival (Romanello & Chiarvesio, 2017), digital born globals seek, through the digitalized world, to develop competitive advantage (Ojala et. al., 2018), but for that they face rapid market changes.…”

“…Thus, given the speed with which markets change and the opportunities that constantly emerge for new entrants (Teece, 2007), factors such as learning (Prashantham & Young, 2011), dynamic capabilities (Kumar & Yakhlef, 2014;Turcan & Juho, 2016) and the exploitation of renewal capabilities (Khan & Lew, 2018), which are strategic by nature (Zahra & George, 2002), are important for the survival of born globals. Furthermore, the shift from the entry to the post-entry is a crucial phase of transition to born globals and its permanence abroad (Romanello & Chiarvesio, 2017), wherein the strategic renewal capabilities are central for these companies to learn and renew themselves from the opportunities and incessant changes of the international environment.…”