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The Link between Born Global Growth, Network Evolution and Firm Performance: A Theoretical Framework

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Firm-Level Internationalization, Regionalism and Globalization

Part of the book series: The Academy of International Business ((AIB))

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Abstract

Born globals (BGs) typically face liabilities of smallness, newness and foreignness (Alvarez and Barney, 2001; Freeman et al., 2006; Hite and Hesterly, 2001; Knight and Cavusgil, 2004; Sharma and Blomstermo, 2003). To meet such challenges, BGs commonly turn to their networks in pursuit of rapid internationalization and fast growth (Coviello and Munro, 1995; Oviatt and McDougall, 1994). At the same time, a BG’s original set of challenges combined with rapid entry into multiple countries suggest the firm’s growth is characterized by turbulent change. To this end, entrepreneurship and international business research has shown that newly established firms go through a series of growth stages (Churchill and Lewis, 1983; Gabrielsson et al., 2008; Kazanjian, 1988; Larson and Starr, 1993), and from inception to maturation their needs, challenges and opportunities evolve. As BGs grow, they accumulate resources and develop their knowledge and capabilities (Coviello and Cox, 2006; Gabrielsson et al., 2008; Johanson and Vahlne, 2003) enabling them to take actions they originally were not able to take. Similarly, a BG’s sustained reliance on its networks can be expected to evolve — but how? This situation prompts our main research question: how do BG networks evolve as the firm grows?

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© 2011 Fabian Sepulveda and Mika Gabrielsson

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Sepulveda, F., Gabrielsson, M. (2011). The Link between Born Global Growth, Network Evolution and Firm Performance: A Theoretical Framework. In: Hutson, E., Sinkovics, R.R., Berrill, J. (eds) Firm-Level Internationalization, Regionalism and Globalization. The Academy of International Business. Palgrave Macmillan, London. https://doi.org/10.1057/9780230305106_18

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