Success Indicators Influencing Choice Between Born Global and Born Regional Approach

Abstract: This paper explores the differences between born global firms and born regional firms. It compares performance between born regional firms and born global firms within the same industry. This paper would investigate three independent variables which are: firm performance, firm size, and model on a company’s strategy. I argue that despite key success indicators being almost similar in both born global firms and born regional firms, there exist some unique commonality in born global firms that are not evident in born regional firms, and vise-versa. This uniqueness motivates them to internationalize quicker than born regional firms. This paper would contribute to IB research by explaining the motivations behind behaviors of international venture firms Keywords: Born global firms, Born regional firms, international venture firms, Internationalization, resource based theory, stakeholder theory, shareholder theory

Download Full-text

The Financial Characteristics of Born Global Firms in Korea

Journal of Industrial Economics and Business ◽

10.22558/jieb.2020.2.33.1.103 ◽

2020 ◽

Vol 33 (1) ◽

pp. 103-119

Author(s):

Minho Kim ◽

Sangno Lee ◽

Cheyung Kang

Keyword(s):

Born Global ◽

Financial Characteristics ◽

Born Global Firms

Download Full-text

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

International Marketing Review ◽

10.1108/imr-05-2015-0130 ◽

2017 ◽

Vol 34 (1) ◽

pp. 46-67 ◽

Cited By ~ 27

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.

Download Full-text

Rapid Internationalization of SMEs: Evidence from Born Global Firms in Chile

Innovar ◽

10.15446/innovar.v24n1spe.47614 ◽

2014 ◽

Vol 24 (1Spe) ◽

pp. 141-151 ◽

Cited By ~ 4

Author(s):

Christian A. Cancino

Keyword(s):

Latin American ◽

Small And Medium Enterprises ◽

Developed Countries ◽

Principal Characteristic ◽

Born Global ◽

Contact Networks ◽

International Contact ◽

Geographical Distances ◽

Medium Enterprises ◽

Born Global Firms

The literature on born global firms in developed countries has revealed some factors that influence the rapid internationalization of Small and Medium Enterprises (SMEs), such as the technological level of the sector in which the firm participates, psychological and geographical distances from the target markets, and the existence of contact networks. To date, little research has been carried out on this topic for Latin American countries. This paper explores how certain determinants influence Chilean born global firms. A logistic regression model is used to analyze 112 SMEs with regular export activities. The results show that Chilean born global firms are influenced by national and international contact networks that their founders are able to generate. The psychological distance between Chilean SMEs and developed countries in Asia, North America and Europe also influences the internationalization of Chilean SMEs. The principal characteristic of Chilean born global firms is their lack of participation in highly technological sectors, with these SMEs instead being involved in sectors that actively exploit natural resources. The results of this study permit certain public policy recommendations to be made that might boost the development of export SMEs.

Download Full-text

Institutional effect on born global firms in China: the role of Sun Tzu’s The Art of War strategies

Journal of Asia Business Studies ◽

10.1108/jabs-11-2014-0084 ◽

2016 ◽

Vol 10 (1) ◽

pp. 1-19 ◽

Cited By ~ 4

Author(s):

Man Zhang ◽

Qian Gao ◽

Jane V. Wheeler ◽

Jungsook Kwon

Keyword(s):

Emerging Markets ◽

Institutional Environment ◽

Critical Role ◽

Born Global ◽

Internationalization Process ◽

Content Type ◽

International Performance ◽

The Relationship ◽

Born Global Firms

Purpose – This paper aims to investigate the role of Sun Tzu’s significant strategies on the relationship between the institutional environment and international performance of Chinese born global firms, a type of small- and medium-sized enterprise (SME) characterized by the company’s limited resources and its early efforts to internationalize. Design/methodology/approach – The methodology is based on a multi-case analysis of interviews conducted with four chosen born global firms, coupled with public database and Web site searches. Through the use of qualitative methods, propositions were developed. Findings – This paper provides insights regarding how the institutional environment, both formal and informal, has a strong positive relationship with born global firm’s international performance. Moreover, Sun Tzu’s significant strategies play a critical role in the internationalization process of born global firms in emerging markets. Originality/value – Although existing studies discuss the application of Eastern philosophical strategies adopted by firms in emerging markets, to the best of our knowledge, this is one of the earliest studies which evaluates the moderation effect of Sun Tzu’s significant strategies on the relationship between institutional environment and business performance. The paper contributes to scholarly discourse on the influencing factors of born global firm’s internationalization process. It also has practical relevance to international entrepreneurs and SMEs from emerging markets.

Download Full-text

Pengaruh Ukuran Perusahaan, Likuiditas, Dan Konservatisme Akuntansi Terhadap Kualitas Laba

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v2i4.319 ◽

2020 ◽

Vol 2 (4) ◽

pp. 3793-3807

Author(s):

Rahmadini Safitri ◽

Mayar Afriyenti

Keyword(s):

Firm Size ◽

Sampling Method ◽

Stock Exchange ◽

Earnings Quality ◽

Accounting Conservatism ◽

Manufacturing Companies ◽

Current Ratio ◽

Independent Variables ◽

Positive Effect ◽

Research Type

The study aims to test empirically the effect of firm size, liquidity, and accounting conservatism of earnings quality. This study uses a quantitative approach with a causal associative research type. The population used in this study are manufacturing companies listed on the Indonesia Stock Exchange in 2015-2019. By using the purposive sampling method, 155 samples were selected. Earnings quality is measured by regressing the CAR value (Narita, 2020). Company size is measured by LogSize. Liquidity is measured using the current ratio. And accounting conservatism is measured using the Givoly and Hayn (2000) model. The results indicate that firm size has no significant effect on earnings quality, in contrast to liquidity and accounting conservatism has a significant positive effect on earnings quality. For further research, it is hoped that it can expand the object and the year of research because this study only examines manufacturing companies for the 2015-2019 observation year. For other research, it is expected to add independent variables so that the results are better.

Download Full-text

The research of Born Global Firms’ transnational strategy

E3S Web of Conferences ◽

10.1051/e3sconf/202021403023 ◽

2020 ◽

Vol 214 ◽

pp. 03023

Author(s):

Li Chong

Keyword(s):

Market Integration ◽

Global Market ◽

Global Strategy ◽

International Strategy ◽

Social Responsiveness ◽

Born Global ◽

Global Business ◽

Transnational Strategy ◽

Multinational Strategy ◽

Born Global Firms

With the development of global business, Born Global Firms are always sinking into various pressures which are related to economic factors, social factors and informational factors. This situation making Born Global Firms’ strategies is supposed to achieve those requirements that including global market integration, social responsiveness, worldwide learning. There are four important strategies which are widely used in Born Global Firms internationalization process that including multinational strategy, global strategy, international strategy, and transnational strategy. This essay will introduce pursuing transnational strategy and some difficulties existing in this process. Furthermore, an example of an entrepreneurial subsidiary will be chosen to explore and conduct further research.

Download Full-text

ANALISA FAKTOR – FAKTOR YANG BERPENGARUH TERHADAP KETEPATAN WAKTU PELAPORAN KEUANGAN (STUDI EMPIRIS PADA PERUSAHAAN OTOMOTIF DAN KOMPONEN DAN TELEKOMUNIKASI YANG TERDAFTAR DI BURSA EFEK INDONESIA)

Jurnal Wahana Akuntansi ◽

10.21009/wahana.112.02 ◽

2016 ◽

Vol 11 (2) ◽

pp. 1

Author(s):

Joko Suryanto ◽

Indra Pahala

Keyword(s):

Financial Reporting ◽

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statements ◽

Public Ownership ◽

Audit Opinion ◽

Independent Variables ◽

Equity Ratio ◽

The Relationship

This research aims to examine the effect of the relationship between firm size, profitability, solvency, public ownership, and the audit opinion on the timeliness of financial reporting. The dependent variable in the form of timekeeping company deliver the financial statements to the Stock Exchange. Meanwhile for the independent variables such as firm size measured by total asets of the company, profitability is measured by profit margin ratio, solvency measured by debt-to-equity ratio, public ownership is measured by the percentage of the number of shares owned by the community, and the audit opinion is measured with an unqualified opinion and otherwise unqualified. This study uses secondary data with population automotive companies and telecommunications components and annual financial statements issued on the Stock Exchange in the period 2010-2012. From the analysis conducted in this study it can be concluded that the size of the company significantly influence the timeliness of financial reporting. While profitability, solvency, public ownership, and the audit opinion does not affect the timeliness of financial reporting. Keywords: Company Size, Profitability, Solvency, Public Shareholding, Opinion Audit and Financial Reporting Timeliness.

Download Full-text