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

Abstract

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.

Is There a Lean Future for Global Startups?

“…The claim that a lean startup is a temporary organization amplifies the emphasis of the second difference. According to Blank (2007), "The idea of not having a functional organization until the organization has found a proven business model is one of the hardest things for new startups to grasp" (Blank & Dorf, 2012 (Lemminger et al 2014;Tanev et al, 2015;. Almost at the same time, Steve Blank (2014) followed-up with a valuable insight: Startups have to be born global or die local because most countries do not have sufficient population to support a potential scale up with their local market (i.e., growth-oriented startups ultimately need to become global players from day one).…”

“…It is inclusive for both "finger-push" firms, with the potential to serve global markets, and for other startups that have committed to a more evolutionary lean global path from their start. Previous research offered examples of these two types of global startup scenarios and labelled them lean and global startups and lean-toglobal startups (Borseman et al, 2016;Tanev et al, 2015). However, the meaning of "global" in the lean global startup definition has to be refined with respect to the global startup definition provided by Oviatt and McDougall (1994) by reducing the requirement for the quantitative intensity of the global resource coordination or market presence at the time of inception of a startup.…”

Platforms for Innovation and Internationalization

“…The article is a follow-up to research on the concept of lean global startups (cf. Tanev, 2012;Tanev & Frederiksen, 2014;Tanev et al, 2015;Zijdemans & Tanev, 2014) but with a focus on the platforms around which the firms are pivoting their innovation and internationalization.…”

“…Typically, this is seen as a one-way process of creating, delivering, and capturing value to defend and sustain value, but it can instead be seen as a process that circles a core idea or platform, as in the lean perspective (Blank, 2013;Tanev et al, 2015). However, the term "platform" can be used in many ways and settings.…”

The Emergence of the Lean Global Startup as a New Type of Firm

“…Other authors, including Tanev and colleagues (Tanev, 2012;Tanev et al, 2014), have approached the technology startup and the lean approach from the born-global context. One of their recommendations is that researchers should focus on defining startup design principles that incorporate the key attributes of bornglobal firms and use these design principles to launch and grow new technology firms.…”