Topic Background:
The internationalization processes of firms have been under abundant research during the last 30 years. The traditional internationalization literature showed that many firms have challenged the incremental stages of the international activities. During the past decade, it has been seen that many firms started global business activities right from their conception, .e.g. entering multiple countries at once. Such firms have been labeled as High Technology Start-Ups (Jolly, V.K., Matti Alahuhta, and Jean Pierre Jeannet , 1992), Born Globals (Mckinsey & Co., 1993); (Knight, Gary A. & S. T. Cavusgil, 1996); (Madsen & Sevais, 1997), and International New Ventures (Oviatt & McDougall, 1994).
This breed of new firms belongs to small and medium enterprises (SMEs) with annual sales of $100 and less than 500 employees—and heavily relies on technology with unique product development and innovation (Hollensen, 2007). Being SMEs, the unique characteristic of Born Global is that these are managed by entrepreneurs. Particularly, the talented and visionary entrepreneurs intentionally try to sell their products around the world. (Oviatt & McDougall, 1994) defined Born Globals as:
"A firm that from its inception derives competitive advantage from the use of resources and the sale of outputs in multiple countries" (p.49)
Discussion Question:
Discuss how the Born Global firms have opened new challenges to managers and society by going global right from their foundation.
Note:
For further reading of topic, you are recommended to read articles available in a folder (Born global) at download section on VU-LMS.
References:
Jolly, Vijay K., Matti Alahuta& Jean-Pierre Jeannet (1992). Challenging the incumbents:
How high technology Start-ups compete globally. Journal of Strategic Change
McKinsey & Co.(1993) Emerging Exporters. Australia's High Value-Added
Manufacturing Exporters, Melbourne: McKinsey & Company and the Australian
Manufacturing Council.
Knight, Gary A. & S. T. Cavusgil (1996). The Born Global firm: A challenge to
traditional internationalization theory. Advances in International Marketing
Madsen, Tage K. & Per Servais (1997). The Internationalization of Born Globals: an
Evolutionary Process? International Business Review
Oviatt, Benjamin M. & Patricia P. McDougall (1994). Toward a theory of international
new ventures. Journal of International Business Studies,
Hollensen, S. (2007). Global Marketing, a decision—oriented approach (3rd Ed.). Delhi,
India: Prentice Hall
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