Early internationalization and performance of small high‐tech “born‐globals”

Abstract

Purpose -The purpose of this paper is to investigate the early internationalization and the performance of small firms in technology-intensive industries. Design/methodology/approach -Using a sample of 278 small US firms in technology-intensive industries, this paper employs quantitative methodologies to test hypotheses. Findings -The findings indicate that such organizational variables as firm size and international experience have a non-linear, inverted U-shaped relationship with these firms' early internationalization. Some strategic variables, such as R&D intensity, have significant impacts, whereas others, such as advertising intensity and strategic alliances, have none. However, the interactions between these strategic variables have a more significant influence upon these firms' early internationalization than do the individual strategic variables in isolation. Moreover, early internationalization has significant and positive impacts on the performance of these firms. Practical implications -The paper's findings have important managerial implications. The paper identifies the driving forces for the early globalization of small firms and provides useful guidelines for managers to manage these factors in their efforts to maximize firm performance. Originality/value -The paper differentiates organizational factors from strategic factors against the background of small "born globals" in technology industries and investigates the interactions among these internal factors and external factors, i.e. the environments of technology industries. Findings of non-linear relationships among these factors shed light on the strategy determinants of a unique group of small to medium-sized enterprises and their performance.

International coopetition for innovation: Are the benefits worth the challenges?

“…The number of foreign markets entered also influences the extent to which the firms can gain knowledge and resources and develop products, services as well as routines (Zahra et al 2009). A broad international market scope implies that firms are involved in set-ups of foreign activities, including networking with several different partners, and these undertakings are tapped into multiple international markets in parallel (Li et al 2012;Taylor and Jack 2013). Beamish and Kachra (2004) argued that firms' international experience can explain why the firms gain innovation advantages from international relationships despite the cultural distance between the partners.…”

Rapid expansion of international new ventures across institutional distance

“…The literature examines internationalization speed mainly in three dimensions (Kuivalainen, Sundqvist, & Servais, 2007), namely earliness of initial foreign entry or post-entry expansion pace (Li, Qian, & Qian, 2015;Reuber, Dimitratos, & Kuivalainen, 2017;Sapienza, Autio, George, & Zahra, 2006), scope of country (Hashai, 2011;Vermeulen & Barkema, 2002), and intensity of foreign commitment (Li, Qian, & Qian, 2012;Oviatt & McDougall, 2005). The first dimension (timing) is essential (Rahaman, 2016), as it has become a common practice to define INVs if they start international business within 6 years of inception (Coviello, 2015;Deng, Jean, & Sinkovics, 2017).…”

“…This characteristic suggests that exports significantly affect overall corporate performance. Second, the literature on the relationship between export expansion speed and performance mainly focuses on corporate-level rather than project-level performance (Chang & Rhee, 2011;Li et al, 2012;Mudambi & Zahra, 2007;Vermeulen & Barkema, 2002). Such a corporate-level construct and measure may fully capture the fundamental effect of rapid export expansion on firm routines, culture, survival, and performance.…”

“There Will Still Be Television but I Don’t Know What It Will Be Called!”: Narrating the End of Television in Australia and New Zealand

“…The company was not 'born global'; it was local but with global aspirations. 'Born Globals', according to one contemporary definition, "seek out international business through the application of resources to the sale of output in multiple countries within three years' of…establishment" (Li, G. Qian, & Z. Qian, 2012). Netflix did not do this, but once it did pursue international markets, it aimed to be a truly global operator rather than a US-based business with international franchises or affiliates.…”