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Turning point: when born globals enter post-entry stage

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Abstract

The literature on firms’ early internationalization includes a huge number of studies investigating the entry stage of companies, while works on the post-entry growth and survival have recently been increasing. In this context, this study aims to better explain which factors determine the evolution of born globals (BGs) during their lifecycles. The authors analyze the growth processes of six Italian manufacturing BGs at different stages of their development, with a particular focus on the transition of the venture from entry to the post-entry stage. The findings show that the entrepreneurial capabilities of the founders have a crucial role during the first international expansion of the companies. As BGs enter the post-entry phase, a trade-off emerges between entrepreneurial capabilities and some specific firm resources aimed at achieving the sustainable growth of the company. Moreover, the authors identify the existence of a turning point when companies switch from the entry to the post-entry stage. During this phase, entrepreneurs manage a process to transform their individual capabilities into an organizational knowledge base. Future research areas and managerial implications are discussed.

La plupart des études dans la littérature ont approfondi l’étape de l’entrée des entreprises qui ont une internationalisation précoce et rapide, pendant que seulement récemment l’intérêt pour le suivi et la croissance de ces entreprises a augmenté. Dans ce contexte, la recherche suivante a pour but d’expliquer quels sont les facteurs clés qui déterminent l’évolution des born global pendant les différentes phases de leur cycle de vie. Les auteurs examinent les procès de croissance de six born global de manufactures italiennes dans différentes étapes de développement, en faisant particulièrement attention au passage des entreprises dans la phase des entrées à celle de post-entry. Les résultats soulignent que les capacités d’entreprenariat des fondateurs ont un rôle déterminant au cours de leur première internationalisation de l’entreprise. En revanche, quand les born global entrent dans la phase post-entry, il y a un échange de rôle entre les capacités d’entreprenariat des fondateurs et des variantes organisatrices qui à cette étape deviennent essentielles pour la croissance soutenable de l’entreprise.

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Acknowledgments

We would like to thank the three anonymous reviewers and the editor Hamid Etemad for their many constructive and helpful comments. This paper was first presented at the 19th McGill International Entrepreneurship Conference, 2015, Birkbeck University of London. We would like to acknowledge the participants to the session Born Globals and Growth for the insightful comments and suggestions received.

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  1. Department of Economics and Statistics, University of Udine, via Tomadini n.30/A, 33100, Udine, Italy

    Rubina Romanello & Maria Chiarvesio

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  1. Rubina Romanello
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  2. Maria Chiarvesio
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Correspondence to Rubina Romanello.

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Romanello, R., Chiarvesio, M. Turning point: when born globals enter post-entry stage. J Int Entrep 15, 177–206 (2017). https://doi.org/10.1007/s10843-016-0192-x

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