Table of Contents

Handbook of Research on Born Globals

Handbook of Research on Born Globals

Research Handbooks in Business and Management series

Edited by Mika Gabrielsson and V. H. Manek Kirpalani

This impressive Handbook provides a dynamic perspective on the development of successful born global firms, including evolutionary phases and pathways of growth, emergence of entire born global industries, role of founders’ linkages, experience, culture and training, as well as collaboration with large MNEs.

Chapter 10: Born Global Firms, Internet, and New Forms of Internationalization

Rotem Shneor

Subjects: business and management, entrepreneurship, international business, marketing

Extract

Rotem Shneor INTRODUCTION The phenomenon of firms quickly internationalizing from inception, while breaching the conventional evolutionary stages path of international development, has been granted various titles including the ‘instant international’ (Fillis 2001), ‘international new venture (INV)’ (Oviatt and McDougall 1994, 2005; Zahra et al. 2000; Zahra 2005; Hallbäck and Larimo 2006), the ‘early internationalizing firm’ (Rialp et al. 2005), ‘born international’ (Gabrielsson and Pelkonen 2008), and, most commonly, the ‘born global’ firm (Knight and Cavusgil 1996; Madsen and Servais 1997; Madsen et al. 2000; Moen 2002; Moen and Servais 2002; Andersson and Wictor 2003; Sharma and Blomstermo 2003; Gabrielsson and Kirpalani 2004; Hashai and Almor 2004; Luostarinen and Gabrielsson 2006). Here, an integrative definition of a born global (BG) firm may refer to an overall young and entrepreneurial firm aiming to enter international markets from its inception, going through a short or no domestic market period prior to international expansion, and whose majority of revenues is generated outside the home market, all while heavily relying on networks and strategic alliances as sources for learning and resources. The reliance on hybrid forms of governance structures, such as networks and alliances, serves both as a remedy for limited resource availability and as a moderator of risk in international operations (Oviatt and McDougall 1994, 2005; Madsen and Servais 1997; Madsen et al. 2000; Gabrielsson and Kirpalani 2004). Indeed, according to Gabrielsson and Kirpalani (2004), the channels necessary for BGs to flourish are multinational corporations (MNCs) acting as system integrators or distributors,...

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