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

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Author Info

  • Terence Fan

    (Lee Kong Chian School of Business, Singapore Management University, Singapore, Singapore)

  • Phillip Phan

    (Lally School of Management & Technology, Rensselaer Polytechnic Institute, Troy, USA)

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

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Bibliographic Info

Article provided by Palgrave Macmillan in its journal Journal of International Business Studies.

Volume (Year): 38 (2007)
Issue (Month): 7 (December)
Pages: 1113-1131

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Handle: RePEc:pal:jintbs:v:38:y:2007:i:7:p:1113-1131

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Cited by:
  1. Sui, Sui & Yu, Zhihao & Baum, Matthias, 2012. "Prevalence and Longitudinal Trends of Early Internationalisation Patterns among Canadian SMEs," MPRA Paper 41177, University Library of Munich, Germany.
  2. Oh, Chang Hoon & Rugman, Alan M., 2012. "Regional integration and the international strategies of large European firms," International Business Review, Elsevier, vol. 21(3), pages 493-507.
  3. Allan Riding & Barbara Orser & Martine Spence & Brad Belanger, 2012. "Financing new venture exporters," Small Business Economics, Springer, vol. 38(2), pages 147-163, February.
  4. Sui, Sui & Yu, Zhihao, 2012. "The Pattern of Foreign Market Entry of Canadian Exporters," MPRA Paper 41176, University Library of Munich, Germany.
  5. T. Vapola, 2011. "The laws of attraction: What attracts innovative start-up firms to partnerships with global MNCs?," Journal of International Entrepreneurship, Springer, vol. 9(1), pages 39-61, March.
  6. Hessels, Jolanda & Parker, Simon C., 2013. "Constraints, internationalization and growth: A cross-country analysis of European SMEs," Journal of World Business, Elsevier, vol. 48(1), pages 137-148.
  7. Ina Lejko & Stefan Bojnec, 2011. "The Internationalization of Slovenian SME's: The Born Global Concept in Transition Economies," MIC 2011: Managing Sustainability? Proceedings of the 12th International Conference, Portorož, 23–26 November 2011 [Selected Papers], University of Primorska, Faculty of Management Koper.
  8. Salvatore Sciascia & Pietro Mazzola & Joseph Astrachan & Torsten Pieper, 2012. "The role of family ownership in international entrepreneurship: exploring nonlinear effects," Small Business Economics, Springer, vol. 38(1), pages 15-31, January.
  9. Romeo V. Turcan, 2013. "International New Venture Legitimation: An Exploratory Study," Administrative Sciences, MDPI, Open Access Journal, vol. 3(4), pages 237-265, November.
  10. Neville, François & Orser, Barbara & Riding, Allan & Jung, Owen, 2014. "Do young firms owned by recent immigrants outperform other young firms?," Journal of Business Venturing, Elsevier, vol. 29(1), pages 55-71.

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