Lean and Global Technology Start-ups: Linking the Two Research Streams

In this paper, the authors introduce the concept of the lean global start-up (LGS) as a way of emphasising the problems for new technology start-ups when dealing separately with business development, innovation and early internationalisation. The paper has two components — an introductory conceptual part and an empirical part that should be considered as basis for the preliminary validation of the conceptual insights. The research sample includes six firms — three from Canada and three from Denmark. Two different early internationalisation paths have been identified: Lean-to-global (L2G start-ups) and lean-and-global (L&G start-ups). Both types of start-ups were found to have faced significant problems with the complexity, uncertainties and risks of being innovative on a global scale. They have however found ways of addressing these problems by a disciplined knowledge sharing and IP protection strategy and the efficient use of business and supporting and public funding mechanisms. The Danish firms have pivoted around the ways of delivering their value proposition and not around the specific value propositions themselves. The Canadian firms have actively pivoted their value proposition motivated by the degree of innovativeness of their products and the insights from business supporting organisations. The analysis of the results justifies the introduction of the LGS concept and opens the opportunity for future research focusing on the articulation of more practical LGS entrepreneurial frameworks.

[1]  G. S. Mort,et al.  Advancing entrepreneurial marketing: Evidence from born global firms , 2012 .

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

[3]  Sylvie K. Chetty,et al.  Internationalization and innovation in a network relationship context , 2010 .

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

[5]  B. Morris Is Your Family Wrecking Your Career? (and Vice Versa). , 1997 .

[6]  Graciela Kuechle,et al.  Failing firms and successful entrepreneurs: serial entrepreneurship as a temporal portfolio , 2013 .

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

[8]  G. Knight,et al.  The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization , 2015 .

[9]  M. Gabrielsson,et al.  The battleship strategy: The complementing role of born globals in MNC’s new opportunity creation , 2008 .

[10]  F. Evangelista,et al.  The entrepreneur in the Born Global firm in Australia and Sweden , 2006 .

[11]  S. Tanev,et al.  Conceptualizing Innovation in Born Global Firms , 2014 .

[12]  Thomas Keil,et al.  What Makes a Resource Valuable? Identifying the Drivers of Firm-Idiosyncratic Resource Value , 2012 .

[13]  Gordon C. Murray,et al.  The International Market Entry Choices of Start-Up Companies in High-Technology Industries , 2000 .

[14]  Michael Song,et al.  A meta-analytic review of effectuation and venture performance , 2009 .

[15]  Brian D. Blume,et al.  Attributions to intuition in the venture founding process: Do entrepreneurs actually use intuition or just say that they do? , 2011 .

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

[17]  S. Sarasvathy Causation and Effectuation: Toward a Theoretical Shift from Economic Inevitability to Entrepreneurial Contingency , 2001 .

[18]  J. Gans,et al.  The Product Market and the Market for 'Ideas': Commercialization Strategies for Technology Entrepreneurs , 2002 .

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

[20]  D. Schendel,et al.  Strategic responses to technological threats , 1976 .

[21]  S. Sarasvathy,et al.  An Effectual Approach to International Entrepreneurship: Overlaps, Challenges, and Provocative Possibilities , 2014 .

[22]  Henry Mintzberg,et al.  Of strategies, deliberate and emergent , 1985, Strategic Management Journal.

[23]  Ø. Moen,et al.  Born Global or Gradual Global? Examining the Export Behavior of Small and Medium-Sized Enterprises , 2002 .

[24]  Joe Tidd,et al.  Gaining momentum: managing the diffusion of innovations , 2010 .

[25]  Troy V. Mumford,et al.  Causation and effectuation processes: A validation study , 2011 .

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

[27]  Svante Andersson,et al.  International entrepreneurship, born globals and the theory of effectuation , 2011 .

[28]  N. Coviello The network dynamics of international new ventures , 2006 .

[29]  Ramana Nanda,et al.  Entrepreneurship as Experimentation , 2014 .

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

[31]  Jay B. Barney,et al.  Discovery and creation: alternative theories of entrepreneurial action , 2007 .

[32]  Rosanna Garcia,et al.  A critical look at technological innovation typology and innovativeness terminology: a literature review , 2002 .

[33]  D. Teece Reflections on "Profiting from Innovation" , 2006 .

[34]  J. Berbegal‐Mirabent,et al.  Business model innovation in entrepreneurship , 2012 .

[35]  Michael Song,et al.  Marketing Under Uncertainty:The Logic of an Effectual Approach , 2009 .

[36]  S. Tamer Cavusgil,et al.  Born Global Firms: A New International Enterprise , 2009 .

[37]  K. Storbacka,et al.  Business model design: conceptualizing networked value co-creation , 2010 .

[38]  Ian Palmer,et al.  Business model replication for early and rapid internationalisation: the ING Direct experience , 2010 .

[39]  Y. Doz,et al.  Agile Innovation: A Footprint Balancing Distance and Immersion , 2011 .

[40]  A. Onetti,et al.  Internationalization, innovation and entrepreneurship: business models for new technology-based firms , 2012 .

[41]  N. Coviello Re-thinking research on born globals , 2015 .

[42]  Sanjeev Swami,et al.  High Technology Marketing: Conceptualization and Case Study , 2006 .