Gradually Internationalizing ‘Born Global’ Firms: An Oxymoron?

International Business Review, 13(4), pp. 465-483, 2004

19 Pages Posted: 26 Aug 2013

See all articles by Niron Hashai

Niron Hashai

Reichman University - Interdisciplinary Center (IDC) Herzliyah; Hebrew University of Jerusalem - Jerusalem School of Business Administration

Tamar Almor

College of Management (Israel) - School of Business Administration

Date Written: August 24, 2004

Abstract

Recent studies view the phenomenon of ‘born global’ firms as a contradiction to the stages theory. This paper shows that the internationalization process of ‘born global’ firms may be characterized by gradual increased commitment to foreign markets, albeit not necessarily according to the predictions of the classic stages theory.

We present and test a conceptual framework that allows analysis of the internationalization process of Israel based, knowledge-intensive ‘born global’ firms (KI-BGs) that have matured.

Results show that the KI-BGs in the sample pursue the following internationalization sequence over time: (1) exports are employed initially in order to serve customers in psychically close foreign markets; (2) subsequently, greenfield marketing subsidiaries are established in these markets; (3) finally, firms engage in mergers and acquisitions, create subsidiaries that incorporate several value-adding activities and penetrate psychically distant foreign markets.

Keywords: Born global, Small and medium sized enterprises, Knowledge-intensive firms, Internationalization process, Stages theory, International new ventures

Suggested Citation

Hashai, Niron and Almor, Tamar, Gradually Internationalizing ‘Born Global’ Firms: An Oxymoron? (August 24, 2004). International Business Review, 13(4), pp. 465-483, 2004, Available at SSRN: https://ssrn.com/abstract=2315545

Niron Hashai (Contact Author)

Reichman University - Interdisciplinary Center (IDC) Herzliyah ( email )

P.O. Box 167
Herzliya, 4610101
Israel

Hebrew University of Jerusalem - Jerusalem School of Business Administration ( email )

Mount Scopus
Jerusalem, 91905
Israel

Tamar Almor

College of Management (Israel) - School of Business Administration ( email )

7 Yitzhak Rabin Blvd.
P.O. Box 25072
Rishon LeZion, 75190
Israel

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