Are born global firms really a “new breed” of exporters? Empirical evidence from an emerging market

This study investigates and compares born global (BG) firms and non-BG firms in Malaysia. We employed the multigroup analysis technique with structural equation models to test six hypotheses to determine the differences and similarities between two proposed models of BG and non-BG firms across a wide range of industries. The study reveals differences between the antecedents of marketing capabilities for BGs versus non-BGs, indicating that the performance enabling mechanisms differ between the groups. More precisely, the ability of BG firms to convert digital and entrepreneurial orientations into marketing capabilities is found to be a distinguishing characteristic of these firms. Moreover, non-BGs utilize government support to build marketing capabilities and obtain superior performance in the international market. This result suggests that governmental export promotion initiatives in Malaysia should be adjusted to increase relevance for BGs. The findings indicate that marketing capabilities play an essential role in the international market performance of both BGs and non-BGs. An important implication is that managerial focus and actions need to be adjusted depending on the type of firm. The two types of firms are not equal; if they are managed similarly, misjudgment will arise.

Do economic freedom, business experience, and firm size affect internationalization speed? Evidence from small firms in Chile, Colombia, and Peru

This paper focuses on SMEs from the Latin American region and aims to build on existing literature on the emergence of the institution-based view in combination with the resource-based view. We contribute to existing literature by extending the application of the aforementioned theories to firms in three under-researched countries in this region. Specifically, we contribute to the extant literature by providing empirical insights on how home country–specific resources and firm-specific resources can affect the internationalization speed of SMEs in Latin American region. In order to achieve our objectives, we empirically examine the role of economic freedom (EF), prior business/international experience, and firm size on speed of internationalization. We use a dataset of Latin American SMEs, employing Poisson and negative binomial (NB) regression techniques. Our data cover three main Latin American Pacific Rim economies—Chile, Colombia, and Peru—with similar economic specializations, geographical borders, and economic growth dynamics. We find that (1) some parts of Economic Freedom Index (EFI) accelerate the speed of internationalization, whereas other areas slow it down or have no effect. Specifically, the closer to full EF the home country is in terms of regulations and government, the shorter the time to internationalize. (2) More experienced management teams are more likely to translate their knowledge into faster international market entry, but this pays off only for larger sized SMEs in contrast to smaller ones due to complementarities between managerial resources and physical, financial, and organizational resources. (3) Finally, industry, firm location, and country destination can only weakly explain the speed of internationalization. The findings add to the literature on SME internationalization in emerging markets and point towards potential policies to stimulate growth by SMEs in these markets.

Does international patent collaboration have an effect on entrepreneurship?

Entrepreneurship is one of the main pillars of growth in any economy. Achieving a high rate of entrepreneurship in a region has become the priority objective of governments and firms. However, in many cases, new firm creation is conditioned by relations or collaboration in innovation with agents from other countries. Previous literature has analyzed the mechanisms that foster entrepreneurship. This paper attempts to shed light on the influence of international patent collaboration (IPC) on entrepreneurial activity at country level taking into account the timing of this relationship. An empirical study is proposed to verify whether IPC leads to greater entrepreneurship and to analyze the gestation period between international patenting actions and firm creation. Using the Generalized Method of Moments, the two hypotheses proposed were tested in a data panel of 30 countries for the period 2005–2017. Results show the influence of IPC in promoting entrepreneurship in the same year, but especially in the following year. The study offers implications for entrepreneurs and public agents. IPC affects the integration and interaction of international agents in a country, favors the production of new knowledge, and increases positive externalities in a territory. All this facilitates the creation of new companies with a high innovative component.