Edited by Hamid Etemad, Stefano Denicolai, Birgit Hagen and Antonella Zuchella
Chapter 9: Value chain activities in Born Global companies
Today, globalization is focused on rapid technological development regarding transport and communication, lower trade barriers and increased international competition. Therefore, increasingly more firms start their international activities during the first year of operation, or very soon after their establishment, and a significant part of their total sales comes from foreign markets. These types of firms are known by several terms – early internationalizing firms, Born Global firms or international new ventures (Oviatt and McDougall 1994). The most common concept is probably Born Global, and the term will be used in this study (Rennie 1993; Knight and Cavusgil 1996; Andersson and Wictor 2003; Madsen and Servais 1997; Rialp et al. 2005). Although the area has been researched for some time, further developments in theory and concepts could contribute to a better understanding and to help explain Born Globals (Autio 2005; Keupp and Gassman 2009). The concept is relatively new although it is applied by an increasing number of companies. One drawback with earlier research on Born Global firms is that the focus has only been on the marketing and selling aspects of such companies. Many definitions of Born Global are based on their sales turnover in foreign markets (Andersson and Wictor 2003). This imbalance is also found in other studies dealing with international business, and there is a need to include both the marketing and supplying side of business to understand firms’ international behaviour, for example a holistic view of the Born Global market is needed (Andersson and Servais 2010).
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