Born Global Firm

Topics: Marketing, International trade, Knowledge management Pages: 25 (7172 words) Published: July 22, 2013
Innovation, Organizational Capabilities, and the Born-Global Firm Author(s): Gary A. Knight and S. Tamar Cavusgil Source: Journal of International Business Studies, Vol. 35, No. 2 (Mar., 2004), pp. 124-141 Published by: Palgrave Macmillan Journals Stable URL: . Accessed: 24/06/2013 13:59 Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at .

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Macmillan Ltd. Allrightsreserved 0047-2506 $25.00 ? 2004 Palgrave

of Business Studies journal International 35, (2004) 124-141

and Innovation, organizational capabilities, firm born-global


GaryA Knight'and S TamarCavusgil2
Florida State University, 'Collegeof Business, 2Eli Graduate School FL, Tallahassee, USA; Broad of Business, State University, East Michigan USA Lansing,

Correspondence: DrGAKnight, Florida Collegeof Business, StateUniversity, FL Tallahassee, 323061110, USA. Tel: +1 850 644 1140 Fax:+1 850 644 4098 E-mail:

Abstract We investigateborn-globalfirmsas earlyadoptersof internationalization that is, companies that expand into foreign markets and exhibit international businessprowessand superiorperformance,from or near theirfounding. Our explication highlights the critical role of innovative culture, as well as knowledge and capabilities,in this unique breed of international,entrepreneurial firm. Case studies are analyzed to better understand the early internationalization phenomenon and reveal key orientationsand strategies that engender international success among these innovative firms. Case findings are then validated in a survey-based study. Despite the scarce resourcestypical of young firms, our findings reveal that born-globalfirms leverage a distinctive mix of orientationsand strategies that allow them to succeed in diverseinternational markets.Findingshave importantimplications for the internationalization contemporary of firms. of Business Studies(2004) 35, 124-141. Journal International doi: 0.1 I I 057/palgrave.jibs.840007 of innovation capabilities; and Keywords:earlyadopters internationalization; bornfirms global

19 Received: November 2002 Revised: 19 October2003 19 2003 Accepted: November Onlinepublication date:8 January 2004

Innovation, knowledge, and capabilities have been central themes of research on the strategy and performance of the firm. Companies that operate internationally from an early stage in their development - early adopters of internationalization or 'bornglobal firms' - are emerging in substantial numbers worldwide. Despite the scarce financial, human, and tangible resources that characterize most new businesses, these early internationalizing firms leverage innovativeness, knowledge, and capabilities to achieve considerable foreign market success early in their evolution. Sometimes referred to as internationalnew venturesor global start-ups, they have come of age during the current era of globalization and advanced technologies. Consistent with other scholars (e.g., Autio et al., 2000; Knight and Cavusgil, 1996; Oviatt and McDougall, 1994; Rennie, 1993), we define born globals as business organizations that, from or near their founding, seek superior international business performance from the application of...
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