Born globals: A cross-country survey on high-tech start-ups

Abstract The paper empirically investigates what drivers affect the decisions of high-tech start-ups to internationalize from the outset, and their degree of born-globalness. The empirical data have been obtained from a cross-country survey on internationalized high-tech start-ups operating in the ICT and electronics sectors. The present findings show that the presence of a small domestic market and the scalability of the product put on sale have a positive effect on the probability of a start-up internationalizing from its inception. We have also observed that the niche strategy and the network relationships built up by the entrepreneur are key drivers for both an early internationalization and the scope of international expansion. The experiential knowledge and international commitment of an entrepreneur, as well as the diversity of team competences and organizational flexibility of a firm, have a significant impact on a born global's degree of born-globalness, although it is not a fundamental precondition for early internationalization.

[1]  Terry S. Overton,et al.  Estimating Nonresponse Bias in Mail Surveys , 1977 .

[2]  Jim Bell,et al.  A cross-national study on the impact of management teams on the rapid internationalization of small firms , 2007 .

[3]  J. Johanson,et al.  The Internationalization Process of the Firm—A Model of Knowledge Development and Increasing Foreign Market Commitments , 1977 .

[4]  Mike Wright,et al.  The internationalization of new and small firms: A resource-based view , 2001 .

[5]  Stephanie A. Fernhaber,et al.  Exploring the Role of Industry Structure in New Venture Internationalization , 2007 .

[6]  Florencio López‐de‐Silanes,et al.  Law and Finance , 1996, Journal of Political Economy.

[7]  Svante Andersson,et al.  International Activities in Small Firms: Examining Factors Influencing the Internationalization and Export Growth of Small Firms , 2009 .

[8]  Benjamin M. Oviatt,et al.  Global start-ups: Entrepreneurs on a worldwide stage , 1995 .

[9]  T. Pelkonen,et al.  Born internationals: Market expansion and business operation mode strategies in the digital media field , 2008 .

[10]  Marian V. Jones,et al.  The Internationalization of Small High-Technology Firms , 1999 .

[11]  L. Bottazzi,et al.  Venture Capital in Europe and the Financing of Innovative Companies , 2002 .

[12]  Mika Gabrielsson,et al.  The globalization strategies of business-to-business born global firms in the wireless technology industry , 2007 .

[13]  Chris Brewster,et al.  Flexible Working in Europe: A Review of the Evidence , 1997 .

[14]  Marcus M. Keupp,et al.  The Past and the Future of International Entrepreneurship: A Review and Suggestions for Developing the Field , 2009 .

[15]  D. Clercq,et al.  Are social networks more important for new business activity in emerging than developed economies? An empirical extension , 2011 .

[16]  Nicole Coviello,et al.  International Entrepreneurship research (1989–2009): A domain ontology and thematic analysis , 2011 .

[17]  Jeffrey E. Johnson Factors Influencing the Early Internationalization of High Technology Start-ups: US and UK Evidence , 2004 .

[18]  P. P. McDougall,et al.  Toward a Theory of International New ventures , 1994 .

[19]  P. P. McDougall,et al.  Defining International Entrepreneurship and Modeling the Speed of Internationalization , 2005 .

[20]  A. N. Kiss,et al.  International entrepreneurship research in emerging economies: A critical review and research agenda , 2012 .

[21]  Luciano Ciravegna,et al.  Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry , 2009 .

[22]  Mika Gabrielsson,et al.  Born globals: Propositions to help advance the theory , 2008 .

[23]  Colin Campbell-Hunt,et al.  A Strategic Approach to Internationalization: A Traditional versus a “Born-Global” Approach , 2004 .

[24]  Christian Schwens,et al.  Early internationalization: A transaction cost economics and structural embeddedness perspective , 2009 .

[25]  N. Nummela,et al.  Strategic orientations of born globals—Do they really matter? , 2008 .

[26]  Ø. Moen,et al.  The Born Globals: A new generation of small European exporters , 2002 .

[27]  Mitja Ruzzier,et al.  Human capital and SME internationalization: a structural equation modeling study , 2007 .

[28]  G. Knight,et al.  Innovation, organizational capabilities, and the born-global firm , 2004 .

[29]  Mika Gabrielsson,et al.  Born globals: how to reach new business space rapidly , 2004 .

[30]  T. Madsen,et al.  The internationalization of Born Globals: An evolutionary process? , 1997 .

[31]  Keith E. Maskus,et al.  How trade-related are intellectual property rights? , 1995 .

[32]  S. Denicolai,et al.  The drivers of the early internationalization of the firm , 2007 .

[33]  J. Johanson,et al.  THE INTERNATIONALIZATION OF THE FIRM — FOUR SWEDISH CASES , 1975 .

[34]  Mika Gabrielsson,et al.  Finance Strategies of Rapidly-Growing Finnish Smes: Born Internationals and Born Globals , 2004 .

[35]  Benjamin M. Oviatt,et al.  Challenges for Internationalization Process Theory: The Case of International New Ventures , 1997 .

[36]  D. Sharma,et al.  The internationalization process of Born Globals: a network view , 2003 .

[37]  Jean-Francois Richard,et al.  Economic Development, Legality and the Transplant Effect , 2003 .

[38]  J. Mathews,et al.  The international entrepreneurial dynamics of accelerated internationalisation , 2007 .

[39]  S. Sundqvist,et al.  Firms’ degree of born-globalness, international entrepreneurial orientation and export performance , 2007 .

[40]  S. Tamer Cavusgil,et al.  A Taxonomy of Born-global Firms , 2005 .