It is a well-known fact that in the past decades globalization has taken international trade to another level, i.e. there are more and more companies involved in international business, importing and exporting at a higher level than ever before.
From the scientific point of view though there have been made observations concerning a specific kind of companies whose international activities seem to contradict the traditional, incremental models of the internationalization process of a firm. These traditional theories assume that just after having established a certain domestic market position and having gathered enough business experience the internationalization process of the firm begins (cf. Uppsala-Modell: Johanson and Vahlne, 1977, 1990). The contradiction though consists in the fact that the mentioned specific kind of companies goes international right from its inception and seems to perceive the whole world as one single market which can be entered and supplied just as easy as the domestic one (Oviatt and McDougall, 1994). So what will be discussed in this paper is in general the phenomenon of the so-called born globals (Rennie, 1993) and in specific the differences that might exist between those born globals and other young traditional internationalizing companies.
Table of Contents
1 Introduction
2 Short Discussion of Theoretical Background
3 “The Born-Global Phenomenon: A Comparative Case Study Research“ as Background
3.1 Conceptual Framework of the Paper
3.2 Empirical Methodology
3.3 The Case Companies
3.4 Literal Replication
3.5 Theoretical Replication
3.6 Results of the Replications
4 Discussion and Conclusions
Research Objectives & Key Themes
The primary objective of this paper is to explore the differences between "born global" firms and traditional internationalizing companies. By conducting a comparative case study analysis of four Spanish small and medium-sized enterprises (SMEs), the research seeks to validate existing theories and identify the distinct characteristics and success factors that drive early internationalization compared to the traditional, incremental approach.
- The phenomenon of "born globals" vs. "late internationalizers"
- Founding team characteristics and managerial vision
- Framework of organizational capabilities and resource-based view
- Strategic focus and international market orientation
- Empirical methodology through literal and theoretical replication
Excerpt from the Book
3.2 Empirical Methodology
The method used in this comparative research is the so-called multiple case-based study which can be used to either test existing theories empirically or to build up new theories on the phenomenon or topic that is being researched. The results of the cases can then be generalized analytically by applying replication - literal and theoretical.
Literal replication means that there is paid attention to previously defined groups of cases and to what extent there exist, within these groups, similarities or differences concerning the predefined expected patterns. In our case these groups of cases are the born globals and the traditional exporters; research focusses on the question whether and how the expected patterns of those two types of internationalizing firms are matched by the case companies.
Theoretical replication in contrast looks at differences between the predefined groups by comparing them systematically and by shaping out key aspects and reasons that underlie theses differences. An important factor is that these differences that will be analyzed were expected and their reasons were a priori predictable as, in our case, the two groups refer to two different expected patterns (Rialp et al., 2005).
As the main unit of analysis is the firm, there were judgementally chosen four Spanish young companies from the geographic region of Catalonia that afterwards were analyzed, examined and compared through interviews with key decision-making managers, analysis of the company‘s websites, internal documentation, a personal questionnaire report, product and firm brochures and other secondary data. “All of the companies had to be small, independently managed and recently created (less than 7 years old)“ (Rialp et al., 2005). Nevertheless there was built in some degree of variance into the study by “including both low-and high-technology-based companies of relatively different size, within different sectors (manufacturing and service industries), and belonging to diverse local geographic areas (urban or rural)“ (Rialp et al., 2005).
Summary of Chapters
1 Introduction: Provides an overview of the globalization-driven shift in firm behavior and defines the research gap concerning firms that internationalize immediately upon inception.
2 Short Discussion of Theoretical Background: Outlines the fundamental distinction between "born globals" and "late internationalizers" based on timing and strategic approach.
3 “The Born-Global Phenomenon: A Comparative Case Study Research“ as Background: Introduces the framework of the comparative analysis, covering conceptual models, methodology, and the selection of case companies.
3.1 Conceptual Framework of the Paper: Establishes the three analytical dimensions: founder characteristics, organizational capabilities, and strategic focus.
3.2 Empirical Methodology: Describes the application of multiple case-based research, utilizing literal and theoretical replication strategies.
3.3 The Case Companies: Details the four specific Spanish SMEs categorized as either born globals or traditional exporters.
3.4 Literal Replication: Compares firms within the same category to assess consistency with expected behavior patterns.
3.5 Theoretical Replication: Systematically compares born globals against traditional exporters to highlight key differentiators.
3.6 Results of the Replications: Summarizes findings and confirms the validity of the conceptual framework used to distinguish the two groups.
4 Discussion and Conclusions: Evaluates the study's findings and suggests policy recommendations to foster global-oriented entrepreneurship.
Keywords
Born Globals, Internationalization, Traditional Exporters, SME, Comparative Case Study, Entrepreneurial Firm, Managerial Vision, Organizational Capabilities, Strategic Focus, Literal Replication, Theoretical Replication, Market Knowledge, International Strategy, Competitive Advantage, Resource-Based View
Frequently Asked Questions
What is the core focus of this research paper?
The paper examines the phenomenon of "born global" firms—companies that begin international operations shortly after inception—and contrasts them with traditional companies that follow an incremental internationalization path.
What are the central thematic areas of the study?
The study centers on three dimensions: the characteristics of the founding team, the firm's organizational capabilities, and the strategic focus regarding international markets.
What is the primary research question?
The research aims to identify and analyze the significant differences that exist between born global firms and traditional internationalizing young firms.
Which scientific methodology does the author use?
The author uses a multiple case-based study approach, applying literal and theoretical replication logic to analyze four Spanish SMEs from Catalonia.
What is covered in the main section of the paper?
The main section details the conceptual framework, the selection of case companies, and the systematic replication analysis that validates the differences in managerial vision, networking, and strategic flexibility.
Which keywords best characterize this study?
Key terms include Born Globals, Internationalization, SME, Comparative Case Study, and Entrepreneurial Firm.
How does the author define a "born global" firm?
A "born global" is defined as a firm that initiates regular export activities within two years of inception and derives at least 50% of its total sales from multiple continents.
Do the empirical findings support the theoretical expectations?
For the most part, yes. The study confirms that born globals show a strong global vision and proactive strategy from the start, although some attributes, such as "prior international experience" and "relationship to foreign customers," showed nuanced or divergent results.
What recommendations does the author make for economic policy?
The author suggests that policy-makers should invest in human capital, support university spin-offs, and facilitate knowledge transfer to help young firms overcome the barriers to becoming successful global ventures.
- Citar trabajo
- Raffael Scheibner (Autor), 2010, Differences Between Born Globals and Other Internationalizing Young Firms, Múnich, GRIN Verlag, https://www.grin.com/document/176680
