Chetty& Campbell Hunt born globals

Topics: International trade, Global, Globalization Pages: 262 (10888 words) Published: November 11, 2013
A Strategic Approach to Internationalization: A Traditional versus a "Born-Global" Approach Author(s): Sylvie Chetty and Colin Campbell-Hunt
Source: Journal of International Marketing, Vol. 12, No. 1 (2004), pp. 57-81 Published by: American Marketing Association
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A

to
Strategic
Approach
A Traditional
Internationalization:
a "Born-Global"
Versus
Approach

This article is based on a study of 16 in-depth case histories of New Zealand firms. It uses both the traditional and the "born global"

approaches

as a

to study

framework

ABSTRACT

the international

ization processes of the firms. The authors use the histories to conduct a systematic analysis of the extent to which firms that might be categorized as following a traditional or born-global internationalization path differ in the strategies they have used and in their prior motivations and capabilities. The main find ings are that many attributes of the born-global model also

characterize firms that began their internationalization
along
traditional lines but were radically transformed in the process of achieving global reach. This study identifies the conse
quences " of rapid international growth, referred to as "the gusher, among these firms and the destabilizing effects of the experience as the firm is taken in unexpected directions. The authors
mon

conclude

with

the

in com

has much

model

that the born-global
internationalization

of small

entrepreneurial

firms and that its most distinctive elements lie in the model's relevance to an increasingly globalized world economy and in the more

aggressive

that are required

strategies

learning

to fol

low this path.

as the

impact

have

been

and

economic

theories

internationalization

Current

of technological,

social,

challenged
changes

propel firms into international markets soon after the firms' 1997). Several studies
(Oviatt and McDougall
inception
and Oviatt 1994; Moen and Servais
(McDougall, Shane,
1995; Rennie 1993) confirm that
2002; Oviatt and McDougall
firms
so

Sylvie Chetty and
Colin Campbell-Hunt

are doing
and that many
internationalizing
rapidly
as
are founded.
to these
We
firms
refer
after
they
a
literature
the existing
However,
portrays
globals."

are

soon

"born

different picture; typical of this view isWelch and Luostari nen's (1988) conclusion that firms that internationalize from inception
whether

are
born

rare.
global

current

The

is a new

debate

in the

or a rehash

concept

Knight, Bell, and McNaughton
phenomenon.
lenge the born-global assumption by asserting
economies
isolated
small,
from their
nationalize

such

as New

inception.

literature

They

of an old

(2001) chal
that firms in

Zealand

aim

argue

that

to inter
because

studies on born globals have tended to focus on knowledge
intensive
however,

industries,
such firms

Strategie

Approach

born

globals
are also found

seem

to be a new

in...

References: Autio,
(2000),
(2000), "The International
Burgel, Oliver
(1980), "On the Internationalization
273-81.
(1999), "Dimensions
Firms in the Apparel
(2003), "Explosive
of Success
(1990),
Wesley
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