Previous research has suggested that Born Globals are not an industry or sector-specific phenomenon and, therefore, should not be defined solely as businesses that implement and/or sell cutting edge technology. Although a rather large proportion of the research focuses on Born Global companies’ internationalization, these articles remains devoted to start-up companies in highly technological industries (Morgan-Thomas & Jones, 2009). Therefore, existing research has tended to overlook the development of Born Global characteristics outside high technology sectors. The critical interrelationships between how and why Born Global firms internationalize in the way they do will therefore be done with focus on the Danish textile and clothing industry, which is known to be less technology-based. This decision is backed by Freeman and Cavusgil (2007), who claimed that Born Globals appear in large numbers, especially in smaller open economies. Furthermore, scholars have found that deregulations and advances in technologies make a country such as Denmark an ideal location to research the phenomenon of Born Global firms. As identified, the present literature has some knowledge gaps. To fill the current gaps, this study aims to investigate Born Global firms, distinguishing to mainstream traditional internationalization, and the limited knowledge regarding low-tech industries. This study aims to map the important factors of Danish textile and clothing manufactures to early and rapid internationalize. Therefore, it seeks to explore the known literatures of Born Global and traditional internationalization, providing a theoretical understanding of the two parts of theory. By combining the methodological approaches of a literature review with an empirical mixed method approach, this study seeks to overview, analyze, and evaluate the scientific field under investigation. Moreover, this study aims to add empirical research findings of quantitative and qualitative nature to provide empirical evidence on how practitioners within the chosen industry can use the research findings. Also, an additional aim is to help future researchers investigate the phenomenon of Born Global and mainstream traditional internationalization by illustrating the important attributes and competencies of companies. Thereby, this study has the overarching aim to address the following problem formulation: How can Danish companies enhance the possibility to decide whether to internationalize as a Born Global or in the traditional way? To answer the problem formulation, this thesis uses several research questions that guide the research through the investigation. Like the problem formulation, the research questions are extracted from the research background, as well as they work as supporting questions for the problem formulation. These are as follows:
The illustration of the business network internationalization model as presented above is the layout presented by Johanson and Vahlne (2009) for understanding firms’ internationalizing. Their model is known as the Business Network Internationalization Process Model and is used to explain the gradual development of business networks and thereby the internationalization of firms. The context of the firms is determined by their network, and to become successful the firm establish trust and commitment in their partnerships. Thereby, the company gains access to knowledge and become able to identify opportunities and exploit those. That is how the firms gradually internationalize their activities to foreign markets, according to Johanson and Vahlne (2009). 3.1.3. The Industrial Network Model As can be expressed from the above section about the Uppsala model, this model treats internationalization independently of the situation and the competition of the market. But as the following statement puts it: “A basic assumption in the network model is that the individual firm is dependent on resources controlled by other firms. The companies get access to these external resources through their network positions. Because the development of positions takes time and depends on resource accumulations, a firm must establish and develop positions in relation to counterparts in foreign networks” (Hollensen, 2008 p. 62). Johanson and Mattson’s (1988) industrial network model tries to combine the two aspects. The model has two dimensions which firstly is the degree of internationalization of the market and secondly the degree of internationalization of the firm (Johanson & Mattson, 1988). The firm’s degree of internationalization refers to those positions that the company has in different nets, how strong these positions are, and how integrated they are. The degree of internationalization of the market refers to how internationalized the industry already is. A low degree of internationalization means that the national nets have few relationships with each other. On contrary, a high degree of internationalization of a production net implies that there are many and strong relationships between the different national sections. Therefore, this model can be used to determine to what degree the company should engage in and position itself in the networks. The two dimensions has created a matrix consisting of four different situations: the early starter, the lonely international, the late starter, and the international among others (Johanson & Mattson, 1988). The following figure shows this:
Definition: Dimensions Country/ Context Findings Driving forces Article Born Global Traditional No. 1, 2015, Lidia Danik and Izabel Kowalik "Business organizations that, from inception, seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries" - Succes factors of born global companies - Barriers to the development of the born global enterprises Empirical study - 10 cases from Poland from both the high tech industry and low tech industry Attributes of the firms such as maintenance of high product quality and custumer focus are threated by managers/founders critical attributes in competition with other internationalized SMEs … Firm factors are central to an international new venture's success. Three key success factors: Close contact with the customer and resulting knowledge of his needs, Brand recognition and product quality. Managerial competencies such as responsiveness, ethical business conduct, and experience were treated by mangers as crucial success factors Success: Delivery time, negotiating skills of the salesforce, after sales service, high product quality, flexibility, pricing policy, offer's complex character, customer relations, Threats: lack of financing, 'brain drain' by TNCs, lack of possibility to explore new tendencies globally, lack of surficient knowledge, language barrier, errors in managing company, too low domestic market potential, lack of government support, economic crisis, political instability and bureaucracy, exchange rate fluctuations/currency instability, lack of customers trust
No. 8, 2015 Jurgita Sekliuckiene "Born globals, which are often entrepreneurial, small and high-tech oriented, tend to adopt a global market vision from the beginning of their activities and embark on rapid internationalization through exportation or any other entry mode, thus skipping some stages of the traditional internationalization process" - Linking entrepreneurial motivation, orientation and network relationship Empirical study. Interview survey sample of 28 Lithuanian born globals (companies have international activities, income of at least 25% from international activities,) First, main motives which push born global firms to act quickly in international markets are risk distribution and small Lithuanian market. Second, Entrepreneurship, knowledge and abilities of born global's managers makes the greatest influence upon the beginning of internationalization of firms. Third, external relations and the role of networks are an influential factor and the born globals collaborate with various national and international organizations. Sum-up, entrepreneurial features of the manager and organization contribute to entrepreneurial start-up survival and activity development. Vision, flexibility, ability adapt in an indefinite situation as well as formation of a team becomes very important. Proactiveness towards international opportunities as risk attitude and innovativeness are most important features. The proactiveness towards opportunities draws from active interaction with customers and other external partners. The accelerator of internationalization becomed the effect of network and partnership support between born global firms and their partners. Universities provide support, knowledge and infrastructure. Born global network: 1) International entrepreneurial orientation, motivation and opportunity 2) Entrepreneur's features 3) Firm's resources 4) Characteristics of the network 5) Suppliers, suppliers' partners 6) Customers, customers' partners 7) Competitors, competitors' alliances, universities and research centres, NGOs, GOs 8) Technology
No. 9, 2014 Liliya Altshuler Oxtorp "An INV is a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries" - Aspects of dynamic managerial capability of technology-based international new ventures - competitive advantage Empirical study. Qualitative longitudinal process case study of a Danish firm. Successful performance of technology-based International New Ventures in the long term are depended on dynamic managerial capabilities. Several aspects influence the dynamic managerial capability: 1) environmental scanning processes 2) Involving managers from different levels and functions in the environmental scanning processes 3) Implementing formal structures and decision rules for R&D resource allocation based on business, technological and strategic fit 4) Understanding and protecting the firm's core competencies 5) Internal processes for knowledge sharing & learning among different levels of specialists & managers 6) Collegial managerial decision making 7) External supervisory board The foundation process, strategic alliances, product development, management, dynamic capabilities
versus performance No. 16, 1997 Tage Koed Madsen and Per Servais "a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources from and the sale of outputs in multiple countries" Both streams (U-model and I-model) of research contend that firms become international in a slow and incremental manner which may be due to lack of knowledge about foreign markets, high risk aversion, high perceived uncertainty, or similar factors - Driving forces and theoretical approaches - Links to orriginal Uppsala Internationalization model - links to other approaches and theories - theoretically and empirically derived propositions - Founder, organization and Environment Summarize emperical evidence reported about Born Globals in mostly high-tech companies A strong entrepreneur with international experience is crucial, penetrating is important, hybrid strcutures are important, high innovative skills, firms in small domestic markets have a higher propensity to become Born Globals. Foreign client followership, targeting niche markets, experience prior to establishment, personal networking of the founders/managers, earlier education, changing market conditions, technological changes, client followership abilities, market knowledge No. 17, 2004 Mika Gabrielsson and V.H. Manek Kirpalani we define that born globals ‘‘from inception, seeks to derive significant competitive advantage from the use of resources and the sales of outputs in multiple countries’ - born globals from their inception pursue a vision of becoming global and often globalize rapidly without any preceding long term domestic or internationalization period - The economic school and the process school - Entrepreneurship and channel importance Finland, Israel - mainly high-tech companies Thus, the major imperative emerges that the born global must utilize large channels provided by MNCs, networks, and/or the Internet to receive substantial revenues and cash flow rapidly. These channels also provide learning, technology, and evolutionary growth MNCs acting as systems integrators, MNCs distributing born global products/services, Networks, Internet, value systems
No. 18, 2011 Murray Taylor, Robert Jack a ‘small and usually technology oriented firm that expands into international markets, virtually from its inception' - Internationalization pace, scale and pattern Australian, non companies case study of four Australian ‘born global’ firms suggest that entrepreneurial interpretation is a factor in determining the pace with which a firm internationalizes. Other key implications include the importance of product imitability in assessing the extent of a firm’s international operations, the significance of psychic distance in the assessment of prospective international markets, and that entry mode choice is influenced by the prevailing trends established in each firm’s industry and the need to maximize its internal resources. Founders entrepreneurial drive, enter countries with similar culture as your own to enable your self to show a successful product history, small size of domestic market, maximize entry into each market to gain market share, careful market selection, global vision, partnerships abroad, right business culture to replicate to locals, search with innovative products
No. 20, 2012 Igor Kalinic and Cipriano Forza - The U-model describes the SMEs internationalization process as ‘‘a gradual acquisition, integration and use of knowledge about foreign markets and operations and a . . successively increasing commitment to foreign markets’’. "In this dynamic model, internationalization of the firm is seen as a process of a company’s international involvement increasing as a result of different types of learning" Rapid internationalization of traditional SMEs: processes, patterns Multiple case-study of SMEs of Northeast Italy from different industries We argue that traditional SMEs are able to speed up their internationalization process by, thus, rapidly catching up with the increasing global competition Prior international experience/knowledge, international networking, managerial vision, strategic focus: proactive and highly aggressive international strategy, direct and close relationship with foreign partners, flexibility in adapting to external opportunities. No. 21, 2011 Parves Sultan, Ho Yin Wong “business organizations that from inception seek to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries”.. "as the firm that reaches foreign sales of at least 25% within three years of their establishment"... "born globals begin exporting one or several products within two years of their establishment and tend to export at least a quarter of total sales". The conventional stage theories emphasise the need to build up the domestic base thoroughly before entering the international arena, and posit that internationalisation is a gradual process Entrepreneurial cognition, motivation, resources, knowledge, network --> financial and strategic performance Study Born Globals from a entrepreneurial cognition and motivation perspective. Based on a existing literature, this article finds that entrepreurial cognition and motivation has a positive relationship with Born Global firms' strategic and financial performance Entrepreneurial traits, skills and motivations, technological competences, unique products development, quality focus and leveraging foreign distributor competences.
No. 22, 2008 Neri Karra, Nelson Philips, Paul Tracey Firms that operate internationally from at or near their inception - Entrepreneurial capabilities: What are these capabilities, where they come from and how they can be developed An in-depth case study of an entrepreneu who created two Born Globals in Turkey. The case-study shows that international opportunity identification, institutional bridging and preference and capacity for cross-cultural collaboration are key entreprneurial capabilities when creating a Born Global. The Born Global must experience, connect and explore to build these capabilities. Entrepreneurial capabilities: international opportunity identification, institutional bridging, capacity and preference for cross-cultural collaboration No. 23, 2004 Knight and Cavusgil "Business organizations that, from or near their founding, seek superior international business performancefrom the application of resources to the sale of outputs in multiple countries" "Operate in the domestic market for many years and gradually evolve into international trade" Born Global firms as early adopters of internationalization - Key orientations and strategies that engender international success among innovative firms. Mixed method research. Qualitative in-dept interviews of 33 professionals to develop key constructs and linkages. Quantitative survey of 900 manufacturing firms from United States. Youth and lack of experience, as well as paucity of financial, human, and tangible resources, are no longer major impediments to the large-scale internationalization and global success of the firm. International entrepreneurial orientation, and international marketing orientation construct and link to global technological competence, unique products development, quality focus, leveraging foreign distributor competencies, which constructs performance in international markets.