Born global companies. Is this a future for economy of Latvia? A preliminary study
Abstract
A small number of export-capable sectors is a factor that renders the Latvian economy sensitive to any changes in the external environment, at the same time it is an incentive to look for growth patterns. Internationalisation is a factor that brings growth. International operations can have various advantages for enterprises, particularly for high-growing companies. The born global companies will experience stronger performance in markets that are more attractive and more internationalised. For this research purposes term ‘born global’ author understands as a ‘truly global’ company as well as domestically based company with overseas operations. The novelty of the research manifests as seeking of novel information and novel solutions based on the experience of different countries. Born global companies are the research object of an investigation. The aim of the article is an analysis of external environment perspective that is necessary to predict long-term survival for every company in conjunction with economic dimensions of globalization. The research methodology is based on the overview of literature sources that attempts to describe the key drivers for early internationalization, statistics of high-growth enterprises and survival rates of newly born enterprises, success factors of high-growth enterprises. As the result framework for the future research is created.
Keyword : born-global company, business environment, entrepreneur, globalization, internationalization, national economy
How to Cite
Vaivode, I. (2018). Born global companies. Is this a future for economy of Latvia? A preliminary study. Business: Theory and Practice, 19, 288-299. https://doi.org/10.3846/btp.2018.29
This work is licensed under a Creative Commons Attribution 4.0 International License.
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Johanson J, Vahlne JE (1992) Management of foreign market entry. Scandinavian International Business Review 1 (3): 9-27. https://doi.org/10.1016/0962-9262(92)90008-T
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Ketels K (2012) Sweden position in the global economy. Entre- prenörskapsforum.
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Knight GA, Liesch PW (2016) Internationalization: from incre- mental to born global. Journal of World Business 51: 93-102. https://doi.org/10.1016/j.jwb.2015.08.011
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Nemkova E (2017) The impact of agility on the market performan- ce of born-global firms: an exploratory study of the ‘Tech City’ innovation cluster. Journal of Business Research 80: 257-265. https://doi.org/10.1016/j.jbusres.2017.04.017
Øyna S, Almor T, Elango B, Tarba SY (2018) Maturing born global and their acquisitive behavior. International Business Review 27: 714-725. https://doi.org/10.1016/j.ibusrev.2017.12.002
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Oviatt BM, McDougall PP (1997) Challenges for internationalization process: the case of international new venture. Management International Review 37 (2): 85-99.
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Vonortas NS, Aridi A (2012) Innovation policy handbook. Center for International science and technology policy.
World Bank Group (2014) Sweden’s business climate. A microe- conomic assessment http://www.enterprisesurveys.org
Zahra SA, George G (2002) International entrepreneurship: the current status of the field and future research agenda. strategic entrepreneurship: creating a new mindset. Blackwell Publisher, Oxford, 255-288.
Zander I, McDougall P, Rose EL (2015) Born global and inter- national business: Evolution of a field of research. Journal of International Business Studies 46: 27-35. https://doi.org/10.1057/jibs.2014.60
Zimmermann V (2017) KfW research focus on economics success factors of high-growth enterprises https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-englische-Dateien/ Fokus-2017-EN
Zhu JQ (2010) Research on the driving forces of new ventures internationalization from the entrepreneur perspective. Shanghai Management Science 32: 13-17.
Zucchella A, Palamara G, Denicolai S (2007) The drivers of the early internationalization of the firm. Journal of World Business 42: 268-280. https://doi.org/10.1016/j.jwb.2007.04.008
Andersson S (2000) The Internationalization of the firm from an entrepreneurial perspective. International Studies of Mana- gement and Organization 30: 63-92. https://doi.org/10.1080/00208825.2000.11656783
Andersson S (2004) Internationalization in different industrial contexts. Journal of Business Venturing 19: 851-875. https://doi.org/10.1080/00208825.2000.11656783
Andersson S, Danilovic M, Huang H (2015) Success factors in Western and Chinese born global companies http://www. scirp.org/journal/ib
Andersson S, Wictor I (2003) Innovative internationalization in new firms: born global – the Swedish case. Journal of International Entrepreneurship 1: 249-275. https://doi.org/10.1023/A:1024110806241
Autio E, Sapienza HJ, Almeida JG (2000) Effects of age at entry, knowledge intensity, and limitability on international growth. Academy of Management Journal 43: 909-924.
Bangs DH (2002) The business planning guide https://www.amazon.com/Business-Planning-Guide-David-Bangs/
Baltic Business Outlook (2018) SEB Bank.
Baltic CEO Survey (2016) https://www.pwc.com/lv/en/news/pwc-baltic-ceo-survey.html
Bew R (2015) Governing the global company oversight of com- plexity authors. Marsh & McLennan Companies.
Bibua NA, Salaa DC, Alba M (2016) Specific and common features in fast-growing companies from the Timiș County (Romania). In: Procedia – Social and Behavioral Sciences 221: 49-56. https://doi.org/10.1016/j.sbspro.2016.05.089
Burgel O, Murray C, Fier A, Licht G, Nerlinger E (1998) The Internationalization of British and German start-up compa- nies in high-technology Industries. Journal of International Marketing 8: 33-62. https://doi.org/10.1509/jimk.8.2.33.19624
Cavusgil ST, Knight G, Riesenberger JR (2014) International Business – The New Realities 3. Essex: Pearson Education.
Cavusgil ST, Knight G (2015) The born global firm: an entre- preneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies 46 (1): 3-16. https://doi.org/10.1057/jibs.2014.62
Chen VZ, Li J, Shapiro DM (2012) International reverse spillover effects on parent firms: Evidences from emerging-market MNEs in developed markets. European Management Journal 30: 204-218. https://doi.org/10.1016/j.emj.2012.03.005
Choquette E, Rask M, Sala D, Schröder P (2017) Born globals – is there fire behind the smoke? International Business Review 26: 448-460. https://doi.org/10.1016/j.ibusrev.2016.10.005
Coyle P (2017) The entrepreneurial mindset workshop desi- gned for higher education professionals https://blog.uiin.org/2017/08/professor-paul-coyle-entrepreneurial-mindset- workshop-designed-higher-education-professionals/
Covin JG, Slevin DP (1989) Strategic Management of Small Firms in Hostile and Benign Environments. Strategic Management Journal 10: 75-87. https://doi.org/10.1002/smj.4250100107
Doing Business (2014) Understanding Regulations for Small and Medium-Size Enterprises. Comparing Business Regulations for Domestic Firms in 189 Economies. A World Bank Group Corporate Flagship.
Ernst & Young (2012) Doing business in Estonia www.doingbusiness.org/~/media/WBG/DoingBusiness/
European parliament (2015) Economic, social and territorial situation of the Nether-lands. In-depth analysis. Directorate- General for internal policies.
Eurostat (2017) Globalisation patterns in EU trade and inves- tment. Luxembourg: Publications Office of the European Union http://ec.europa.eu/eurostat/about/policies/copyrig
Fernhaber SA, Oviatt PP, McDougall BM (2007) Exploring the role of industry structure in new venture internationalization. Entrepreneurship Theory and Practice 31: 517-542. https://doi.org/10.1111/j.1540-6520.2007.00186.x
Fernhaber SA, Gilbert BA, McDougall PP (2008) International entrepreneurship and geographic location: an empirical examination of new venture internationalization. Journal of International Business Studies 39: 267-290. https://doi. org/10.1057/palgrave.jibs.8400342
Frederiksa AJ, Englis BG, Ehrenhard ML, Groena AJ (2018) En- trepreneurial cognition and the quality of new venture ideas: an experimental approach to comparing future-oriented cognitive processes. Journal of Business Venturing. https://doi.org/10.1016/j.jbusvent.2018.05.007
Geoghegan N, Mirfin G (2010) Entrepreneur mapping. Trac- king Business along. The Journey from Pre-Start to Start- Up to High Growth https://www.slideshare.net/CllrMirfin/entrepreneur-mapping
Gerschewski S, Rose EL, Lindsay VJ (2015) Understanding the drivers of international performance for born global firms: an integrated perspective. Journal of World Business 50: 558-575. https://doi.org/10.1016/j.jwb.2014.09.001
Hitt MA, Li D, Xu K (2016) International strategy: from local to global and beyond. Journal of World Business 51: 58-73. https://doi.org/10.1016/j.jwb.2015.08.016
Huhta F, Huhta H (2014) The Internationalization process within born global companies. How Swedish born globals utilize resources in the internationalization process. Umeå School of Business and Economics.
Johanson J, Vahlne JE (1992) Management of foreign market entry. Scandinavian International Business Review 1 (3): 9-27. https://doi.org/10.1016/0962-9262(92)90008-T
Khana Z, Kyu Y, Lew YK (2018) Post-entry survival of developing economy international new ventures: a dynamic capability perspective. International Business Review 27: 149-160. https://doi.org/10.1016/j.ibusrev.2017.06.001
Ketels K (2012) Sweden position in the global economy. Entre- prenörskapsforum.
Knight GA, Cavusgil ST (2004) Innovation, organizational capabilities, and the born global firm. Journal of Interna- tional Business Studies 35: 124-141. https://doi.org/10.1057/palgrave.jibs.8400071
Knight GA, Liesch PW (2016) Internationalization: from incre- mental to born global. Journal of World Business 51: 93-102. https://doi.org/10.1016/j.jwb.2015.08.011
Madsen TK, Servais P (1997) The Internationalization of Born Globals: An Evolutionary Process? International Business Review 6: 561-583. https://doi.org/10.1016/S0969-5931(97)00032-2
Martina SL, Javalgi RG, Cavusgil E (2017) Marketing capabili- ties, positional advantage, and performance of born global firms: contingent effect of ambidextrous innovation. United States International Business Review 26: 527-543. https://doi.org/10.1016/j.ibusrev.2016.11.006
McDougall PP, Oviatt BM (2000) International Entrepreneurs- hip: The Intersection of Two Research Paths. Academy of Management Journal 43: 902-906.
Naqshbandi MM, Jasimuddin SM (2018) Knowledge-oriented leadership and open innovation: role of knowledge mana- gement capability in France-based multinationals. Inter- national Business 27 (3): 701-713. https://doi.org/10.1016/j. ibusrev.2017.12.001
National Development Plan of Latvia for 2014-2020 (2014-2020) Cross-Sectoral Coordination Centre.
Nemkova E (2017) The impact of agility on the market performan- ce of born-global firms: an exploratory study of the ‘Tech City’ innovation cluster. Journal of Business Research 80: 257-265. https://doi.org/10.1016/j.jbusres.2017.04.017
Øyna S, Almor T, Elango B, Tarba SY (2018) Maturing born global and their acquisitive behavior. International Business Review 27: 714-725. https://doi.org/10.1016/j.ibusrev.2017.12.002
Oviatt B, McDougall P (1994) Toward a theory of international new ventures. Journal of International Business Studies 25 (1): 45-64. https://doi.org/10.1057/palgrave.jibs.8490193
Oviatt BM, McDougall PP (1995) Global Starts-Ups: entrepre- neurs on a worldwide stage. The Academy of Management Executive 9: 30-44.
Oviatt BM, McDougall PP (1997) Challenges for internationalization process: the case of international new venture. Management International Review 37 (2): 85-99.
Oviatt BM, McDougall PP (2005) Defining International Entre- preneurship and Modeling the Speed of Internationalization. Management International Review 37: 85-99. https://doi.org/10.1111/j.1540-6520.2005.00097.x
Persinger ES, Civi E, Vostina SW (2007) The born global entre- preneurs in emerging economies. International Business and Economics Research Journal 6: 73-82.
Picken JC (2017) From founder to CEO: An entrepreneur’s roa- dmap. Business Horizons 60: 7-14. https://doi.org/10.1016/j.bushor.2016.09.004
PwC (2016) Doing business and investing in Estonia https://www.pwc.com/ee/et/publications/DoingBusinessinEstonia
Rialp A, Rialp J, Knight G (2015) International entrepreneurship: a review and future directions. Routledge.
Roundya PT, Bradshaw M, Brockman BK (2018) The emergence of entrepreneurial ecosystems: a complex adaptive systems approach. Journal of Business Research 86: 1-10. https://doi.org/10.1016/j.jbusres.2018.01.032
Sharma D, Johanson J (1987) Technical consultancy in interna- tionalisation. International Marketing Review 4 (4): 20-29. https://doi.org/10.1108/eb008339
Shua R, Ren S, Zheng Y (2017) Building networks into discovery: the link between entrepreneur network capability and entre- preneurial opportunity discovery. Journal of Business Rese- arch 85: 197-208. https://doi.org/10.1016/j.jbusres.2017.12.048
Soetanto D (2018) Examining change in entrepreneurial networks: using visualization as an alternative approach.European Management Journal. https://doi.org/10.1016/j.emj.2018.05.001
Strategy for Latvia (2016) Document of the European Bank for Reconstruction and Development https://www.ebrd.com/docu- ments/strategy-and-policy-coordination/strategy-in-latvia.pdf
Taylor M, Jack R (2016) Born global firm internationalisation: the influence of industry factors. Contemporary Management Research Pages 12 (3): 289-308. https://doi.org/10.7903/ cmr.14892
Transparency International (2015) Corruption Perceptions Index https://www.transparency.org/cpi2015
Vonortas NS, Aridi A (2012) Innovation policy handbook. Center for International science and technology policy.
World Bank Group (2014) Sweden’s business climate. A microe- conomic assessment http://www.enterprisesurveys.org
Zahra SA, George G (2002) International entrepreneurship: the current status of the field and future research agenda. strategic entrepreneurship: creating a new mindset. Blackwell Publisher, Oxford, 255-288.
Zander I, McDougall P, Rose EL (2015) Born global and inter- national business: Evolution of a field of research. Journal of International Business Studies 46: 27-35. https://doi.org/10.1057/jibs.2014.60
Zimmermann V (2017) KfW research focus on economics success factors of high-growth enterprises https://www.kfw.de/PDF/Download-Center/Konzernthemen/Research/PDF-Dokumente-Fokus-Volkswirtschaft/Fokus-englische-Dateien/ Fokus-2017-EN
Zhu JQ (2010) Research on the driving forces of new ventures internationalization from the entrepreneur perspective. Shanghai Management Science 32: 13-17.
Zucchella A, Palamara G, Denicolai S (2007) The drivers of the early internationalization of the firm. Journal of World Business 42: 268-280. https://doi.org/10.1016/j.jwb.2007.04.008