Skip to main content
SpringerLink
Log in

Born Global or Born to Run? The Long-Term Growth of Born Global Firms

  • Research Article
  • Published:
Management International Review Aims and scope Submit manuscript

Abstract

Born global firms have stimulated substantial academic attention as regards their start up but research has neglected their subsequent, ongoing internationalisation. This contribution extends analysis from the inception and childhood to the growth and maturity of such firms. We investigate whether born global are also “born to run” companies; we also try to reconcile the analysis of international new ventures in international entrepreneurship studies with the approaches based on fast growing firms and gazelles. We initially present the latest advances in the modelling of accelerated internationalisation over time; we then discuss and develop a conceptual framework and a model that captures the variables that affect born global firms’ evolution in an holistic perspective; finally, we match case study analysis with the framework and discuss our findings. The results show two groups of firms that differ significantly in long-term internationalisation paths and growth cycles. We highlight turning points in these paths and discuss the drivers which lead to sustained high growth. The characteristics of the entrepreneurial/management teams, strategic partnerships and the entry in complex markets are the main differentiators in growth patterns, irrespectively of the industry. The “openness” of the founders and the early preparation for growth determine both the extent of organizational learning and the speed at which it is developed and used. We see said learning and its speed in development and use as the underlying, necessary mechanism of sustained high growth.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7

Similar content being viewed by others

References

  • Acs, Z., & Mueller, P. (2008). Employment effects of business dynamics: mice, gazelles and elephants. Small Business Economics, 30(1), 85–100.

    Article  Google Scholar 

  • Alvarez, S., & Busenitz, L. (2001). The entrepreneurship of resource-based theory. Journal of Management, 27(6), 755–775.

    Article  Google Scholar 

  • Anderson, B., Covin, J., & Slevin, D. (2009). Understanding the relationship between entrepreneurial orientation and strategic learning capability: an empirical investigation. Strategic Entrepreneurship Journal, 3(3), 218–240.

    Article  Google Scholar 

  • Anderson, J., Håkansson, H., & Johanson, J. (1994). Dyadic business relationships within a business network context. Journal of Marketing, 58(4), 1–15.

    Article  Google Scholar 

  • Aspelund, A., Madsen, T., & Moen, O. (2007). A review of the foundation, international marketing strategies, and performances of new ventures. European Journal of Marketing, 41(11/12), 1423–1448.

    Article  Google Scholar 

  • Autio, E., Sapienza, H., & Almeida, J. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43(5), 909–924.

    Article  Google Scholar 

  • Barringer, B., Jones, F., & Neubaum, D. (2005). A quantitative content analysis of the characteristics of rapid-growth firms and their founders. Journal of Business Venturing, 20(5), 663–687.

    Article  Google Scholar 

  • Bell, J., Crick, D., & Young, S. (2004). Small firm internationalisation and business strategy: an exploratory study of “knowledge intensive” and “traditional” manufacturing firms in the UK. International Small Business Journal, 22(1), 23–56.

    Article  Google Scholar 

  • Bell, J., McNaughton, R., Young, S., & Crick, D. (2003). Towards an integrative model of small firm internationalisation. Journal of International Entrepreneurship, 1(4), 339–362.

    Article  Google Scholar 

  • Chetty, S., & Campbell-Hunt, C. (2004). A strategic approach to internationalization: a traditional versus a born global approach. Journal of International Marketing, 12(1), 57–81.

    Article  Google Scholar 

  • Colombo, M., & Grilli, L. (2005). Founders’ human capital and the growth of new technology-based firms: a competence-based view. Research Policy, 34(6), 795–818.

    Article  Google Scholar 

  • Corbin, J., & Strauss, A. (1990). Basics of qualitative research: grounded theory procedures and techniques. London: Sage.

    Google Scholar 

  • Coviello, N. (2006). The network dynamics of international new ventures. Journal of International Business Studies, 37(5), 713–731.

    Google Scholar 

  • Crick, D., & Spence, M. (2005). The internationalization of “high performing” UK high-tech SMEs: a study of planned and unplanned strategies. International Business Review, 14(2), 167–185.

    Article  Google Scholar 

  • Dyer, J., & Singh, H. (1998). Cooperative strategy and sources of interorganizational competitive advantage. Academy of Management Review, 23(4), 660–679.

    Google Scholar 

  • Edelman, L., & Yli-Renko, H. (2010). The impact of environment and entrepreneurial perceptions on venture-creation efforts: bridging the discovery and creation views of entrepreneurship. Entrepreneurship Theory and Practice, 34(5), 833–856.

    Article  Google Scholar 

  • Efrat, K., & Shoham, A. (2012). Born global firms: the differences between their short- and long-term performance drivers. Journal of World Business, 47(4), 675–685.

    Article  Google Scholar 

  • Eisenhardt, K. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.

    Google Scholar 

  • Eriksson, K., Måjkgard, A., & Sharma, D. (2000). Path dependence and knowledge development in the internationalization process. Management International Review, 40(4), 307–328.

    Google Scholar 

  • Feeser, H., & Willard, G. (1990). Founding strategy and performance: a comparison of high and low growth high tech firms. Strategic Management Journal, 11(2), 87–98.

    Article  Google Scholar 

  • Florin, J., Lubatkin, M., & Schulze, W. (2003). A social capital model of high-growth ventures. Academy of Management Journal, 46(3), 374–384.

    Article  Google Scholar 

  • Freeman, S., Edwards, R., & Schroder, B. (2006). How smaller born-global firms use networks and alliances to overcome constraints to rapid internationalization. Journal of International Marketing, 14(3), 33–63.

    Article  Google Scholar 

  • Gabrielsson, M., & Kirpalani, V. (2004). Born globals: how to reach new business space rapidly. International Business Review, 13(5), 555–571.

    Article  Google Scholar 

  • Gabrielsson, M., Kirpalani, M., Dimitratos, P., Solberg, C., & Zucchella, A. (2008). Born globals: propositions to help advance the theory. International Business Review, 17(4), 385–401.

    Article  Google Scholar 

  • Garnsey, E., Stam, E., & Heffernan, P. (2006). New firm growth: exploring processes and paths. Industry and Innovation, 13(1), 1–20.

    Article  Google Scholar 

  • Gilbert, B., McDougall, P., & Audretsch, D. (2006). New venture growth: a review and an extension. Journal of Management, 32(6), 926–950.

    Article  Google Scholar 

  • Gulati, R., Nohria, N., & Zaheer, A. (2000). Strategic networks. Strategic Management Journal, 21(3), 203–215.

    Article  Google Scholar 

  • Hagen, B., Zucchella, A., Cerchiello, P., & De Giovanni, N. (2012a). International strategy and performance: clustering strategic types of SMEs. International Business Review, 21(3), 369–382.

    Article  Google Scholar 

  • Hagen, B., Zucchella, A., Guido, D., Grassi, M., Liesch, P., Weerawardena, J., & Sullivan-Mort, G. (2012b). Inside the black box. Learning, innovation and SMEs international performance. Competitive paper presented at the 38th EIBA Annual Conference “International Business and Sustainable Development”, Brighton-Sussex.

  • Hashai, N., & Almor, T. (2004). Gradually internationalizing ‘born global’ firms: an oxymoron? International Business Review, 13(4), 465–483.

    Article  Google Scholar 

  • Henrekson, M., & Johansson, D. (2010). Gazelles as job creators: a survey and interpretation of the evidence. Small Business Economics, 35(2), 227–244.

    Article  Google Scholar 

  • Hurmerinta-Peltomaeki, L. (2003). Time and internationalisation: theoretical challenges set by rapid internationalisation. Journal of International Entrepreneurship, 1(2), 217–236.

    Article  Google Scholar 

  • Jantunen, A., Nummela, N., Puumalainen, K., & Saarenketo, S. (2008). Strategic orientations of born globals—do they really matter? Journal of World Business, 43(2), 158–170.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (1977). The internationalisation process of the firm: a model of knowledge development and increasing foreign market commitment. Journal of International Business Studies, 8(1), 23–32.

    Article  Google Scholar 

  • Johanson, J., & Vahlne, J.-E. (2009). The Uppsala internationalization process model revisited: from liability of foreignness to liability of outsidership. Journal of International Business Studies, 40(9), 1411–1431.

    Article  Google Scholar 

  • Jones, M., & Coviello, N. (2005). Internationalisation: conceptualising an entrepreneurial process of behaviour in time. Journal of International Business Studies, 36(3), 284–303.

    Article  Google Scholar 

  • Karra, N., Phillips, N., & Tracey, P. (2008). Building the born global firm developing entrepreneurial capabilities for international new venture success. Long Range Planning, 41(4), 440–458.

    Article  Google Scholar 

  • Keupp, M., & Gassmann, O. (2009). The past and the future of international entrepreneurship: a review and suggestions for developing the field. Journal of Management, 35(3), 600–633.

    Article  Google Scholar 

  • Kimberly, J. R. (1976). Organizational size and the structuralist perspective: a review, critique, and proposal. Administrative Science Quarterly, 21(4), 571–597.

    Article  Google Scholar 

  • Knight, G. (2000). Entrepreneurship and marketing strategy: the SME under globalisation. Journal of International Marketing, 8(2), 12–32.

    Article  Google Scholar 

  • Knight, G., & Cavusgil, S. (1996). The born global firm: a challenge to traditional internationalisation theory. In S. Cavusgil & T. Madsen (Eds.), Advances in International Marketing (8th ed., pp. 11–26). Greenwich: JAI Press.

    Google Scholar 

  • Kuivalainen, O., Sundqvist, S., Saarenketo, S., & McNaughton, R. (2012). Internationalization patterns of small and medium-sized enterprises. International Marketing Review, 29(5), 448–465.

    Article  Google Scholar 

  • Lee, C., Lee, K., & Pennings, J. (2001). Internal capabilities, external networks, and performance: a study on technology-based ventures. Strategic Management Journal, 22(6/7), 615–640.

    Article  Google Scholar 

  • Liesch, P., & Knight, G. (1999). Information internationalization and hurdle Rates in small and medium enterprise internationalisation. Journal of International Business Studies, 30(1), 383–394.

    Article  Google Scholar 

  • Liesch, P., Weerawardena, J., Sullivan-Mort, G., Knight, G., & Kastelle, T. (2007). Introduction. Journal of World Business, 42(3), 232–235.

    Article  Google Scholar 

  • Loane, S., Bell, J., & McNaughton, R. (2007). A cross-national study on the impact of management teams on the rapid internationalization of small firms. Journal of World Business, 42(4), 489–504.

    Article  Google Scholar 

  • Madsen, T., & Servais, P. (1997). The internationalization of born globals: an evolutionary process? International Business Review, 6(6), 561–583.

    Article  Google Scholar 

  • Marshall, C., & Rossman, G. (1999). Designing qualitative research. Thousand Oaks: Sage.

  • Mathews, J., & Zander, I. (2007). The international entrepreneurial dynamics of accelerated internationalisation. Journal of International Business Studies, 38(3), 387–403.

    Article  Google Scholar 

  • McDougall, P., Covin, J., Robinson, R., & Herron, L. (1994). The effects of industry growth and strategic breadth on new venture performance and strategy content. Strategic Management Journal, 15(7), 537–554.

    Article  Google Scholar 

  • McDougall, P., & Oviatt, B. (2000). International entrepreneurship: the intersection of two research paths. Academy of Management Journal, 43(5), 902–906.

    Article  Google Scholar 

  • Miles, R., & Snow, C. (1986). Organizations: new concepts for new forms. California Management Review, 28(3), 66–73.

    Article  Google Scholar 

  • Miller, D. (1983). The correlates of entrepreneurship in three types of firms. Management Science, 29(7), 770–791.

    Article  Google Scholar 

  • Moen, O., & Servais, P. (2002). Born global or gradual global? examining the export behaviour of small and medium-sized enterprises. Journal of International Marketing, 10(3), 49–72.

    Article  Google Scholar 

  • Mudambi, R., & Zahra, S. (2007). The survival of international new ventures. Journal of International Business Studies, 38(2), 333–352.

    Article  Google Scholar 

  • Nummela, N., Puumalainen, K., & Saarenkento, S. (2005). International growth orientation of knowledge-intensive SMEs. Journal of International Entrepreneurship, 3(1), 5–18.

    Article  Google Scholar 

  • Oviatt, B., & McDougall, P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1), 45–64.

    Article  Google Scholar 

  • Oviatt, B., & McDougall, P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship Theory and Practice, 29(5), 537–553.

    Article  Google Scholar 

  • Park, S., & Bae, Z. (2004). New venture strategies in a developing country: identifying a typology and examining growth patterns through case studies. Journal of Business Venturing, 19(1), 81–105.

    Article  Google Scholar 

  • Park, S., Chen, R., & Gallagher, S. (2002). Firm resources as moderators of the relationship between market growth and strategic alliances in semiconductor start-ups. Academy of Management Journal, 45(3), 527–545.

    Article  Google Scholar 

  • Parker, S., Storey, D., & van Wittelooustijn, A. (2010). What happens to gazelles? the importance of dynamic management strategy. Small Business Economics, 35(2), 203–226.

    Article  Google Scholar 

  • Rennie, M. (1993). Global competitiveness: born global. The McKinsey Quarterly, 4(2), 45–52.

    Google Scholar 

  • Reuber, A., & Fischer, E. (2002). Foreign sales and small firm growth: the moderating role of the management team. Entrepreneurship Theory and Practice, 27(1), 29–46.

    Article  Google Scholar 

  • Rialp, A., Rialp, J., & Knight, G. (2005). The phenomenon of early internationalising firms: what do we know after a decade (1993–2003) of scientific inquiry? International Business Review, 14(2), 147–166.

    Article  Google Scholar 

  • Sapienza, H., Autio, E., George, G., & Zahra, S. (2006). A capabilities perspective on the effects of early internationalization on firm survival and growth. Academy of Management Review, 31(4), 914-933.

  • Sexton, D., & Smilor, R. (1997). Entrepreneurship 2000. Dover: Upstart Publication.

  • Smricich, L., & Stubbart, C. (1985). Strategic Management in an enacted world. Academy of Management Review, 10(4), 724–736.

    Google Scholar 

  • Song, M., Podoynitsyna, K., van der Bij, H., & Halman, J. (2008). Success factors in new ventures: a meta-analysis. Journal of Product Innovation Management, 25(1), 7–27.

    Article  Google Scholar 

  • Spence, M., & Crick, D. (2009). An exploratory study of Canadian international new venture firms’ development in overseas markets. Qualitative Market Research, 12(2), 208–233.

    Article  Google Scholar 

  • Spender, J. (1989). Industry recipes: the nature and sources of managerial judgement. Oxford: Basil Blackwell.

    Google Scholar 

  • Storey, D. (1994). Understanding the small business sector. London: ITP.

    Google Scholar 

  • Sui, S., Yu, Z., & Baum, M. (2012). Prevalence and longitudinal trends of early internationalisation patterns among Canadian SMEs. International Marketing Review, 29(5), 519–535.

    Article  Google Scholar 

  • Weerawardena, J., Mort, G., Liesch, P., & Knight, G. (2007). Conceptualizing accelerated internationalization in the born global firm: a dynamic capabilities perspective. Journal of World Business, 42(3), 294–306.

    Article  Google Scholar 

  • Westhead, P., Wright, M., & Ucbasaran, D. (2001). The internationalisation of new and small firms: a resource-based view. Journal of Business Venturing, 16(4), 333–358.

    Article  Google Scholar 

  • Yin, R. (1981). The case study crisis: some answers. Administrative Science Quarterly, 26(1), 58–65.

    Article  Google Scholar 

  • Yin, R. (1994). Case study research: design and methods (2nd ed.). Newbury Park: Sage.

    Google Scholar 

  • Zahra, S., & George, G. (2002). International entrepreneurship: the current status of the field and future research agenda. In M. Hitt, D. Ireland, S. Camp, & D. Sexton (Eds.), Strategic entrepreneurship: creating a new mindset (pp. 255–288). Oxford: Blackwell.

    Google Scholar 

  • Zucchella, A., Palamara, G., & Denicolai, S. (2007). The drivers of early internationalisation of the firm. Journal of World Business, 42(3), 268–280.

    Article  Google Scholar 

  • Zuchella, A., & Servais, P. (2012). The internationalisation process of small- and medium-sized firms and the liability of complexity. International Journal of Entrepreneurship and Small Business, 15(2), 191–212.

    Article  Google Scholar 

Download references

Acknowledgments

Birgit Hagen gratefully acknowledges financial support from the Cariplo Foundation International Recruitment Call “The internationalization of Italian firms: the role of intangibles, managerial resources, and corporate governance”.

Author information

Authors and Affiliations

  1. Department of Economics and Management, University of Pavia, Pavia, Italy

    Birgit Hagen & Antonella Zucchella

Authors
  1. Birgit Hagen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Antonella Zucchella
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Birgit Hagen.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Hagen, B., Zucchella, A. Born Global or Born to Run? The Long-Term Growth of Born Global Firms. Manag Int Rev 54, 497–525 (2014). https://doi.org/10.1007/s11575-014-0214-7

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11575-014-0214-7

Keywords

Search

Navigation