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'Born-again global' firms: An extension to the 'born global' phenomenon

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  • Bell, Jim
  • McNaughton, Rod
  • Young, Stephen
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    Abstract

    Firm internationalisation has for long been regarded as an incremental process, wherein firms gravitate towards 'psychologically close' markets and increase commitment to international markets in a gradual, stepwise manner through a series of evolutionary 'stages.' However, much of the recent literature provides clear evidence of rapid and dedicated internationalisation by 'born global' firms. Typically, these are smaller entrepreneurial firms that internationalise from inception or begin shortly thereafter. Their main source of competitive advantage is often related to a more sophisticated knowledge base that they use to exploit the dynamics of an increasingly global market environment. This contribution posits that there is growing evidence of another phenomenon, that of the emergence of 'born-again' global firms. These are firms that have been well established in their domestic markets, with apparently no great motivation to internationalise, but which have suddenly embraced rapid and dedicated internationalisation. The underlying motivations and triggers leading to such a strategy are explored and illustrated through a number of case studies. Research and public policy implications of the 'born-again' global phenomenon are discussed.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of International Management.

    Volume (Year): 7 (2001)
    Issue (Month): 3 ()
    Pages: 173-189

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    Handle: RePEc:eee:intman:v:7:y:2001:i:3:p:173-189

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    References

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    1. Phillips McDougall, Patricia & Shane, Scott & Oviatt, Benjamin M., 1994. "Explaining the formation of international new ventures: The limits of theories from international business research," Journal of Business Venturing, Elsevier, vol. 9(6), pages 469-487, November.
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    3. Madsen, Tage Koed & Servais, Per, 1997. "The internationalization of Born Globals: An evolutionary process?," International Business Review, Elsevier, vol. 6(6), pages 561-583, December.
    4. Coviello, Nicole & Munro, Hugh, 1997. "Network relationships and the internationalisation process of small software firms," International Business Review, Elsevier, vol. 6(4), pages 361-386, August.
    5. Boter, Hakan & Holmquist, Carin, 1996. "Industry characteristics and internationalization processes in small firms," Journal of Business Venturing, Elsevier, vol. 11(6), pages 471-487, November.
    6. M Krishna Erramilli, 1991. "The Experience Factor in Foreign Market Entry Behavior of Service Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 22(3), pages 479-501, September.
    7. Benjamin M Oviatt & Patricia Phillips McDougall, 1994. "Toward a Theory of International New ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 25(1), pages 45-64, March.
    8. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 605-635, December.
    9. Fletcher, Richard, 2001. "A holistic approach to internationalisation," International Business Review, Elsevier, vol. 10(1), pages 25-49, February.
    10. Leonidas C Leonidou & Constatine S Katsikeas, 1996. "The Export Development Process: An Integrative Review of Empirical Models," Journal of International Business Studies, Palgrave Macmillan, vol. 27(3), pages 517-551, September.
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    Cited by:
    1. Luis Dib & Angela Rocha & Jorge Silva, 2010. "The internationalization process of Brazilian software firms and the born global phenomenon: Examining firm, network, and entrepreneur variables," Journal of International Entrepreneurship, Springer, vol. 8(3), pages 233-253, September.
    2. Schwens, Christian & Kabst, Ruediger, 2011. "Internationalization of young technology firms: A complementary perspective on antecedents of foreign market familiarity," International Business Review, Elsevier, vol. 20(1), pages 60-74, February.
    3. Natasha Evers, 2010. "Factors influencing the internationalisation of new ventures in the Irish aquaculture industry: An exploratory study," Journal of International Entrepreneurship, Springer, vol. 8(4), pages 392-416, December.
    4. Andrea Calabrò & Donata Mussolino, 2013. "How do boards of directors contribute to family SME export intensity? The role of formal and informal governance mechanisms," Journal of Management and Governance, Springer, vol. 17(2), pages 363-403, May.
    5. Ingrid Wakkee, 2006. "Mapping network development of international new ventures with the use of company e-mails," Journal of International Entrepreneurship, Springer, vol. 4(4), pages 191-208, December.
    6. Tiia Vissak, 2006. "Internationalization of Estonian listed companies: theories and reality," University of Tartu - Faculty of Economics and Business Administration, in: Entrepreneurship in Estonia: policies, practices, education and research, volume 28, chapter 6, pages 116-138 Faculty of Economics and Business Administration, University of Tartu (Estonia).
    7. Gabrielsson, Mika & Kirpalani, V.H. Manek & Dimitratos, Pavlos & Solberg, Carl Arthur & Zucchella, Antonella, 2008. "Born globals: Propositions to help advance the theory," International Business Review, Elsevier, vol. 17(4), pages 385-401, August.
    8. Tuppura, Anni & Saarenketo, Sami & Puumalainen, Kaisu & Jantunen, Ari & Kyläheiko, Kalevi, 2008. "Linking knowledge, entry timing and internationalization strategy," International Business Review, Elsevier, vol. 17(4), pages 473-487, August.
    9. Eldrede Kahiya, 2013. "Export barriers and path to internationalization: A comparison of conventional enterprises and international new ventures," Journal of International Entrepreneurship, Springer, vol. 11(1), pages 3-29, March.
    10. Andreu Blesa & Diego Monferrer & Ysabel Nauwelaerts & Maria Ripollés, 2008. "The effect of early international commitment on international positional advantages in Spanish and Belgian international new ventures," Journal of International Entrepreneurship, Springer, vol. 6(4), pages 168-187, December.
    11. Aleluia, João & Leitão, João, 2009. "International Entrepreneurship and Technology Transfer: The CDM´s Reality in China," MPRA Paper 16150, University Library of Munich, Germany.
    12. Ricardo Jorge Fernandes Coutinho & Raquel Meneses Moutinho, 2012. "Generational Succession as a Trigger for Family Business Internationalization," Economics and Management Research Projects: An International Journal, Open Access International Journals, vol. 2(1), pages 1-17, February.
    13. Erik Rasmussen & Tage Madsen & Per Servais, 2012. "On the foundation and early development of domestic and international new ventures," Journal of Management and Governance, Springer, vol. 16(4), pages 543-556, November.
    14. Sharon Loane, 2005. "The role of the internet in the internationalisation of small and medium sized companies," Journal of International Entrepreneurship, Springer, vol. 3(4), pages 263-277, December.
    15. John Mathews, 2006. "Dragon multinationals: New players in 21 st century globalization," Asia Pacific Journal of Management, Springer, vol. 23(1), pages 5-27, March.
    16. Love, James H. & Ganotakis, Panagiotis, 2013. "Learning by exporting: Lessons from high-technology SMEs," International Business Review, Elsevier, vol. 22(1), pages 1-17.
    17. María Ripollés-Meliá & Martina Menguzzato-Boulard & Luz Sánchez-Peinado, 2007. "Entrepreneurial orientation and international commitment," Journal of International Entrepreneurship, Springer, vol. 5(3), pages 65-83, December.

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