BORN GLOBAL FIRMS
The concept of Born Global Firms can be defined as various characteristics or various criteria since it was first introduced into business theory. It has been suggested that a Born Global Firms is a new firm which make at least one international sale to any new market within two years (Australian and New Zealand Academy of Management, 2009). While there is another theory stated that Born Global Firms can be considered as early adopters of internationalization. Cavusgil and Knight (2004) describes Born Global Firms as companies that have superior performance and capabilities of international business skills which expand into foreign markets within short period since they starting the companies.
There are some distinctive characteristics shown by Born Global Firms. One view, expressed by Laura, Toni and Antti (2009), Born Global Firms usually tend to be small and young in age, but it provides the flexibility that help Born Global Firms to grow in international market faster. Like what the above definition described, Born Global Firms begin to develop in international business within short period after being founded. This is supported by Stoyan Tanev (2012), high activity such as exporting their products to foreign markets within couple of years from or near the founding. Stoyan Tanev (2012) also believes the management team in Born Global Firms is more intelligent in aspect of international entrepreneurial orientation. It is really crucial and important to have strong international outlook management team as Born Global Firms are early adopters of internationalization. According to Arun Kottolli (2006), Born Global Firms tend to raised their capital through foreign capital markets at a lower cost. They have good corporate network established by their top management which allow and help them to raise capital around the world.
Besides, high productive and superior product qualities are also the characteristics for Born Global Firms....
Please join StudyMode to read the full document