Post internationalization strategies of born global service firms

2019 ◽  
Vol 29 (5) ◽  
pp. 481-496 ◽  
Author(s):  
Karthik Dhandapani ◽  
Rajesh Srinivas Upadhyayula ◽  
Rakesh Basant
Keyword(s):  
Group Analysis ◽  
Service Firms ◽  
Born Global ◽  
Born Globals ◽  
It Industry ◽  
Strategic Group ◽  
Content Type ◽  
Trade Offs ◽  
Internationalization Strategies ◽  
And Performance

Purpose Extant literature suggests that post-entry internationalization strategies and performance implications of born globals are an under-researched area. This paper aims to examine the internationalization strategies of born global service firms (BGSFs) and performance implications thereof through strategic group analysis of hand-collected data from Indian information technology (IT) firms. Design/methodology/approach Strategic group analysis has been used to examine if there are any differences in the strategic decisions across firms and if there are any implications of these strategies on the performance of firms. The strategic group approach helps understand not only the antecedents but also the strategic trade-offs that different groups of BGSFs face after internationalization. The study uses Indian IT industry as the context for analysis of BGSFs, as studies have found that the Indian IT industry to have significant presence of born globals. Findings Four distinct strategic paths were found to be followed by BGSFs. In addition, the nature of services and ways of mobilization or deployment of resources explain the different internationalization paths and consequently performance. The performance differences primarily stem from the choice of degree of commitment and scope of internationalization. Practical implications This study provides distinct insights to practice by charting internationalization paths for an emerging born global. Originality/value This paper contributes to the theory on born globals by using strategic lens to explain the internationalization paths and their performance implications.

scholarly journals Born global firms’ growth and collaborative entry mode: the role of transnational entrepreneurs

2017 ◽  
Vol 34 (1) ◽  
pp. 46-67 ◽  
Author(s):  
Yipeng Liu
Keyword(s):  
Entry Mode ◽  
High Growth ◽  
Professional Service ◽  
Service Firms ◽  
Born Global ◽  
Institutional Complexity ◽  
Content Type ◽  
Transnational Entrepreneurs ◽  
Born Global Firms

Purpose The purpose of this paper is to investigate the role of transnational entrepreneurs in growing born global firms, with a focus on the growth process facilitated by collaborative entry mode. Design/methodology/approach The author chose the solar photovoltaic industry as the empirical setting. This industry is a particularly good context for the study because many firms in this industry sell knowledge-intensive products internationally from their inception. The primary data consist of 32 in-depth interviews with entrepreneurs, industry association representatives, research institute scholars, and professional service firms. Findings The study highlights the importance of transnational entrepreneurs who develop born global firms to maturity by using their technological knowledge, international connections, and bicultural advantages to navigate and leverage institutional complexity. Collaborative entry mode with distributors enables born global firms’ high growth rapidly, whereas transnational entrepreneurs play a central role in building and expanding international network. Initial public offering in overseas stock exchange accelerates the high growth trajectory of born global firm by signalling its maturity. Research limitations/implications The author took a process perspective by examining the growth and maturity of born global firms by collaborative partnership; the author’s focus on the role of transnational entrepreneurs highlighted entrepreneurs’ sensitivity to institutional complexity along the growth trajectory. Practical implications The author recommends both incumbent and entrepreneurial firms in developed economies collaborate with transnational entrepreneurs in various business areas. Industry firms may be able to cooperate on product and marketing development, and professional service firms can offer services to expand born global firms further, because transnational entrepreneurs follow the global “rules of the game”. Originality/value The author shed important light on the role of transnational entrepreneurs throughout the growth of born global firms via collaborative entry mode. Furthermore, the author develops a multilevel framework for analysing the combined influence of transnational entrepreneur and institutional complexity on the growth of born global firm.

Performance Variations Among Strategic Group Members: An Examination of Individual Firm Capability

1989 ◽  
Vol 15 (4) ◽  
pp. 649-661 ◽  
Author(s):  
Michael W. Lawless ◽  
Donald D. Bergh ◽  
William D. Wilsted
Keyword(s):  
Explanatory Power ◽  
Group Analysis ◽  
Performance Model ◽  
Strategic Groups ◽  
Strategic Group ◽  
Common Strategy ◽  
Firm Capability ◽  
Group Members ◽  
And Performance ◽  
Performance Variations

Because of inconsistent empirical evidence, the membership-performance model pervasive in strategic group analysis is re-examined. We propose that individualfirm capabilities, which reflect capacity to implement or change strategy, moderate the effect of members' shared strategy characteristics on performance. Controlling for market structure, we defined two strategic groups based on common strategy characteristics among 55 manufacturing firms. We found significant differences in performance and capabilities within each group. There was also evidence of a significant correlation between capabilities and performance within each group. We conclude that effects offirms' capabilities should be accountedfor to increase the explanatory power of strategic groups in competitive performance.

Competitive capabilities in knowledge-intensive services firms: strategic advantages of born globals in a peripheral region

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marta Muñoz Guarasa ◽  
Bruno Brandão Fischer
Keyword(s):  
Service Sector ◽  
Ordinary Least Squares ◽  
Peripheral Region ◽  
Quality Of Services ◽  
Service Firms ◽  
Born Global ◽  
Specific Domain ◽  
Content Type ◽  
Knowledge Intensive

Purpose While the born global (BG) phenomenon has been well established in the literature, studies on accelerated internationalization of firms in the service sector have been scarce, particularly for the specific case of knowledge-intensive services (KIS). The purpose of this paper is to explore which competitive characteristics differentiate KIS BGs from other KIS firms in the context of a peripheral region. Design/methodology/approach The empirical focus of this study comprehends primary survey data from 250 Spanish KIS firms (Andalusia) that have been internationalized and analyzed through ordinal and ordinary least squares regressions. The authors address the “born-global effect” on five features of interest, namely, entry mode, technological capabilities, qualification of staff, external resources and quality of services. Findings Results suggest that KIS BGs in Andalusia perceive exports as a more relevant form of internationalization than its non-BG peers. Also, KIS BGs in Andalusia present higher levels of technological intensity. Differences in terms of staff qualification, access to extramural R&D resources and the quality of services could not be identified. Research limitations/implications The main limitation of this research concerns its cross-sectional character, thus hindering the evaluation of developmental trajectories taking place in the cohort under scrutiny. Such an approach would allow a better comprehension of the competitiveness dynamics in internationalized KIS firms. Also, because this assessment is geographically restricted to Andalusia, Spain, the authors recommend caution in establishing direct comparisons and appropriation of results for other regional/national contexts. Practical implications Recommendations for public policy include establishing the necessary infrastructures to encourage the technological development of KIS companies and provide support – through export promotion agencies, for instance – for early approximation with foreign markets. Taking into account the contributions of KIS firms for the development of a peripheral economy, this involves the need to establish instruments that provide strategic information to internationalize, as well as lines of funding for these companies. Originality/value Empirical evidence on KIS BGs is needed to fully grasp its differences to other internationalized service firms. The analysis within this specific domain represents an advance in the literature on this subject. Also, the context of peripheral regions – considering their economic differences to core areas – has been understudied. The elaboration and application of the survey have allowed the authors to have access to primary in-depth data and, therefore, to build a better understanding of KIS BGs in Andalusia, Spain.

scholarly journals Strategic capabilities, competitive strategy, and performance among retailers in Argentina, Peru and the United States

2011 ◽  
Vol 49 (1) ◽  
pp. 139-155 ◽  
Author(s):  
John A. Parnell
Keyword(s):  
Competitive Strategy ◽  
The United States ◽  
Retail Trade ◽  
Superior Performance ◽  
Business Strategies ◽  
Strategic Group ◽  
Content Type ◽  
The Usa ◽  
Strategic Capabilities ◽  
And Performance

PurposeThis paper aims to assess the influence of strategic capabilities on the business strategy‐performance relationship among retail businesses in Argentina, Peru, and the USA.Design/methodology/approachZahra and Covin's self‐reported scale was amended and utilized to categorize businesses along Porter's typology. Strategic capability scales were adopted from DeSarbo and associates. Self‐reporting scales to assess relative competitive and objective performance in the present study were adopted from Ramanujam and Venkatraman. A survey containing these scales was administered to 277 attendees at a retail trade show in the USA. The survey – translated into Spanish – was distributed by mail and completed by 136 retailers in Peru and 163 retailers in Argentina.FindingsLinks were assessed among strategic capabilities, generic business strategies, and performance in retail businesses in Argentina, Peru and the USA. Support was found for links between the focus strategy and both marketing and linking capabilities, between the differentiation strategy and technology capabilities, and between the cost leadership strategy and management capabilities. The low cost‐differentiation combination strategy was associated with high performance in strategic groups whose businesses possess strong management and technology capabilities. These findings highlight the importance of developing strategy‐specific capabilities as a foundation for superior performance.Research limitations/implicationsThis study relied on self‐reported assessments of competitive strategy, organizational capabilities, and performance. It utilized cluster analysis, assessed only retailers, and considered only three nations.Originality/valueExtant strategic group research highlights the link between group membership and firm performance. The present study reinforces previous research. In addition, the presence of organization‐specific strategic capabilities helps to explain why some businesses outperform others in the same strategic group.

Internationalization and performance of Indian born globals

2017 ◽  
Vol 12 (1) ◽  
pp. 108-124 ◽  
Author(s):  
Manish B. Ganvir ◽  
Neeraj Dwivedi
Keyword(s):  
Financial Performance ◽  
International Markets ◽  
Curvilinear Relationship ◽  
Born Global ◽  
Content Type ◽  
Exporting Firms ◽  
Post Entry ◽  
And Performance ◽  
Relationship Of ◽  
Practical Implications

Purpose The purpose of this paper is threefold: first, to study internationalization-performance relationship of Indian born global (IBG) firms from multi-theoretical lens and establish the nature of this relationship; second, to highlight the role of foreign equity in moderating this relationship; and third, to establish the relevance of export intensity (EI) in determining these firms’ financial performance. Design/methodology/approach In total, 411 IBG firms were identified based on born global (BG) definition and post-entry internationalization age requirement of this study. A balanced panel comprising of three years from 2010 to 2012 was analyzed using pooled panel and moderated multiple regression techniques. Findings The authors empirically prove that though EI and financial performance are positively related at overall level, this relationship is curvilinear in nature. In presence of foreign equity this positive curvilinear relationship is moderated to inverted-U shape. Research limitations/implications The data sample is restricted to 411 private limited IBGs between the years 2009 and 2012. Implications of the findings are for policy makers and managers to sharpen their strategic foresight for exporting firms in its post-entry period. Also, investors can take level of internationalization into cognizance when investing in BG firms. Practical implications The authors believe the results have practical implications for numerous parties, such as shareholders, institutional investors, scholars, policymakers and managers. It emboldens modern day managers to make further foray into internationalization due to its positive benefits on both productivity as well as profitability. Also, firms that look for foreign equity participation have to balance their strategies for greater scale and scope into international markets. Originality/value This is the first study that brings out the vital relationship aspect of EI with financial performance of IBG firms in their post-entry internationalization period, adding to international business literature in area of BG firms in their post-entry internationalization period.

scholarly journals Advancing the entrepreneurial orientation construct: the role of passion and perseverance

2016 ◽  
Vol 26 (4) ◽  
pp. 446-471 ◽  
Author(s):  
Stephan Gerschewski ◽  
Valerie J. Lindsay ◽  
Elizabeth Rose
Keyword(s):  
Risk Taking ◽  
Entrepreneurial Orientation ◽  
Empirical Support ◽  
Research Approach ◽  
Born Global ◽  
Born Globals ◽  
Content Type ◽  
Depth Interviews ◽  
Born Global Firms

Purpose The purpose of this paper is to examine how entrepreneurial orientation (EO) is manifested in the context of born global firms. Specifically, the authors investigate the extent to which the EO dimensions of the influential Miller/Covin & Slevin scale are demonstrated in born globals. In addition, following calls in the literature, some as-yet unrecognised dimensions of EO in born globals are examined. Design/methodology/approach The authors use a qualitative research approach by conducting semi-structured, in-depth interviews with eight born global firms from New Zealand and Australia. Findings The authors find that the EO dimensions of proactiveness and innovativeness are strongly prevalent in these firms. In contrast to the extant literature, the results also indicate that these born global firms generally display a relatively low level of risk-taking. The authors find strong empirical support for two additional emerging dimensions of EO: passion and perseverance. Originality/value The study provides two key contributions to the area of international entrepreneurship by investigating how EO is prevalent in the context of born globals and by proposing the new dimensions of passion and perseverance.

The positioning and competitive strategies of higher education institutions in the United Arab Emirates

2020 ◽  
Vol 34 (1) ◽  
pp. 139-153 ◽  
Author(s):  
Stephen Wilkins
Keyword(s):  
Higher Education ◽  
United Arab Emirates ◽  
Higher Education Institutions ◽  
Group Analysis ◽  
Competitive Strategies ◽  
Strategic Group ◽  
Content Type ◽  
Education Hub ◽  
Education Market ◽  
Higher Education Market

Purpose The purpose of this paper is to discover how higher education institutions may segment the market in a competitive higher education hub and to assess the usefulness of strategic group analysis as an analytical technique for market and competitor analysis. As a case example of a competitive higher education market, this research investigates how higher education institutions in the United Arab Emirates (UAE) position themselves and compete with one another. Design/methodology/approach The research relied mainly on secondary data, which were obtained from the websites of institutions and regulatory bodies. Then, hierarchical cluster analysis was used to identify strategic groups and institutional competitive strategies in the UAE higher education market. A panel of experts helped interpret and explain the cluster results. Findings Eight distinct institutional clusters were identified, which include public- and privately-owned institutions, as well as elite and specialist institutions. Institution and programme accreditation were found to be particularly important in the UAE market. The institutions in each group appear to operate in a particular market segment, targeting students who have similar needs and wants, and who often share similar demographic features. Practical implications It is concluded that strategic group analysis may help institutions to evaluate potential markets, select target segments and develop competitive strategies. In the UAE market context, the results demonstrate how institutions may position themselves to create strong and distinctive identities. The results of the research may be of interest to higher education institutions that operate in competitive markets, and particularly those that want to evaluate foreign markets. Originality/value This is believed to be the first study to use a strategic group approach for analysing competitors in a higher education hub.

Innovation strategy and performance of international technology services ventures

2015 ◽  
Vol 26 (4) ◽  
pp. 548-564 ◽  
Author(s):  
Nelson Oly Ndubisi ◽  
Celine Marie Capel ◽  
Gibson C Ndubisi
Keyword(s):  
Standard Procedure ◽  
Process Innovation ◽  
Innovation Strategy ◽  
Service Firms ◽  
Trade Off ◽  
Content Type ◽  
New Knowledge ◽  
Technology Services ◽  
And Performance ◽  
The Relationship

Purpose – The purpose of this paper is to investigate the moderating role of structural autonomy in the relationship between innovation strategy and performance of international technology services ventures (ITVs). Design/methodology/approach – Data were collected from 200 ITVs serving markets outside their country of origin. Instrumentation followed standard procedure by adapting validated and parsimonious items from existing literature. Factor and hierarchical multiple regression analyses were applied to examine the hypothesised relationships. Findings – The results indicate a significant relationship between innovation strategy (namely service products innovation, process innovation and administrative innovation) and performance of ITVs. Structural autonomy moderates the relationship between process innovation, administrative innovation and performance. There is no moderating effect of autonomy in the association of service products innovation and performance. Research limitations/implications – The study corroborates the argument that service firms have more to gain by granting autonomy. In the context of ITVs, such gains are directly linked to performance through enhanced innovation in service products, processes and administration. It adds to the growing suggestions and rebuttals in the literature of a trade-off between innovation and communication; and between exploration of new knowledge and exploitation of existing knowledge in organisations when there is autonomy. Practical implications – Management can increase innovation and performance by granting greater autonomy to employees. Managers who are concerned that autonomy’s capacity to increase innovation capability may come at the expense of intra-organisational communication can be assured that intra-organisation communications can exist in the face of autonomy, and there is no real trade-off after all. Similarly, there is no basis for any concern for potential trade-off between exploration of new knowledge and exploitation of existing knowledge in organisations. Originality/value – Research suggests that autonomy of subsidiaries, units, groups or individuals encourages innovation, and that innovation strategy can enhance organisational performance. However, there is a counter-argument that same autonomy potentially hinders exploitation and performance of innovations. The study sheds more light on these anecdotal views based on data from ITVs.

scholarly journals Is more always better? Risk trade-offs among internationalizing new ventures

2014 ◽  
Vol 26 (5) ◽  
pp. 406-420 ◽  
Author(s):  
Stephanie A. Fernhaber ◽  
Patricia P. McDougall-Covin
Keyword(s):  
Product Innovation ◽  
New Ventures ◽  
Future Research ◽  
Content Type ◽  
Trade Offs ◽  
And Performance ◽  
Technology Industries ◽  
Gain Access ◽  
Heckman Selection

Purpose – The purpose of this paper is to investigate how ventures manage the negative returns associated with higher levels of internationalization. Many new ventures are internationalizing to fully exploit new innovations and/or gain access to larger markets. Yet at some point the rising costs associated with internationalization outweigh any benefits, resulting in an inverted U-shaped relationship between internationalization and performance. Design/methodology/approach – New ventures are theorized to better manage high levels of internationalization by limiting exposure to other sources of risk. This can be achieved by leveraging greater size and/or limiting simultaneous diversification efforts on product innovation. To test the hypotheses, a regression using Heckman selection was run using a sample of 210 US-based, publicly held ventures in high-technology industries. Findings – The results confirm that when higher levels of internationalization are coupled with either a low emphasis on product innovation or larger size, the negative returns are mitigated and actually become positive. Research limitations/implications – A key implication lies in recognizing the role of risk management for internationalizing ventures. Future research could benefit by testing for generalizability in other countries as well as among privately held ventures. Practical implications – To manage the trade-offs associated at higher levels of internationalization, ventures need to maintain a low emphasis on product innovation or meet a threshold in terms of size. Originality/value – The value of this research lies in better understanding how ventures are able to overcome rising costs at higher levels of internationalization.

Trading places: innovation and performance go head-to-head

2014 ◽  
Vol 30 (6) ◽  
pp. 14-16
Keyword(s):  
Product Innovation ◽  
Business Performance ◽  
Innovation Performance ◽  
Data Set ◽  
Content Type ◽  
Technology Firms ◽  
Trade Offs ◽  
Pertinent Information ◽  
And Performance ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds his own impartial comments and places the articles in context. Findings – This briefing examines the trade-offs that take place between product innovation performance and business performance. It leverages a data set of 99 medium-sized technology firms in Sweden and considers the variables that affect these trade-offs. The paper suggests that while product innovation performance is positively related to the sales of the firm, the links with profitability are rather less proven. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and an easy-to-digest format.

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