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Internationalisation of textile firms in India: a comparative study of 'traditional' and 'born global' firms

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  • Srividhya Mummidi

Abstract

This study examines the impact of internationalisation on the performance of 264 Indian textile firms from 2005 to 2019, differentiating between traditional firms, inexperienced born global firms, and experienced born global firms. Employing a random effects model, the study reveals a heterogeneous relationship between internationalisation and firm performance. Traditional firms demonstrate a positive linear association with internationalisation, whereas inexperienced born global firms in the Indian textile sector initially present an inverted U-shaped relationship. This relationship transitions to an M-shape as these firms accrue experience, underscoring the dynamics of performance over time. The analysis also highlights that firm size and working capital are important firm-level resources during internationalisation. This research emphasises the critical phases where born global firms experience performance declines, offering valuable insights for policymakers to provide targeted support, thus contributing significantly to the literature on international business within the context of emerging markets textile industry.

Suggested Citation

  • Srividhya Mummidi, 2026. "Internationalisation of textile firms in India: a comparative study of 'traditional' and 'born global' firms," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 38(2), pages 202-220.
    • Handle: RePEc:ids:ijicbm:v:38:y:2026:i:2:p:202-220
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