Global Strategy Journal – DOI: https://doi.org/10.1002/gsj.1368

Born globals from emerging economies: Reconciling early exporting with theories of internationalization

Marleen McCormick, Deepak Somaya

What explains born global firms who internationalize very early through exports, when theories of internationalization recommend they focus on domestic markets first? While prior research suggests a number of factors that enable exporting by new ventures, empirical tests of these theories have not evaluated if these factors uniquely explain new venture exporting. We propose and empirically test hypotheses that exporting by young (relative to established) emerging?economy firms increases when they tap into the drivers of modern globalization (Internet technologies, global talent flows) and overcome home?country institutional constraints (government inefficiencies, location), all of which have bigger impacts on exporting by young firms than established ones. Understanding these unique drivers of born global emerging?economy firms is critical for reconciling this phenomenon with traditional theories of firm internationalization.

Check out a cool video abstract here!

Small Business Economics—DOI: https://doi.org/10.1007/s11187-019-00183-4

Effectuation and internationalisation: a review and agenda for future research. 

Karami, M., Wooliscroft, B. & McNeill, L.

Effectuation theory has been increasingly applied in research examining the internationalisation of small- and medium-sized enterprises (SMEs). This study systematically reviews the SME internationalisation literature to clarify the ways effectuation theory helps international entrepreneurship (IE) scholarship respond to key questions of how international opportunities are developed. The review identified central topics of limited resources, networking, and an unplanned approach, which connect effectuation with extant internationalisation research. In so doing, the study offers two contributions. The first is an articulation of effectual mechanisms at work in IE opportunity development. The second offers insights back to effectuation theory regarding the context of IE and potential areas for improving the application of effectuation to IE research. We close with implications and an agenda for future research.

 

Small Business Economics – DOI: https://doi.org/10.1007/s11187-019-00216-y

Getting the facts right on born globals

Ferguson, S., Henrekson, M., & Johannesson, L.

Policymakers in several countries have recently taken steps to promote the rapid export expansion of small- and medium-sized enterprises (SMEs). The goal of these policies has been to create successful export-intensive startups, which are often referred to as born globals. These measures are motivated by studies claiming that born global firms are disproportionately important for job creation and economic growth. Using detailed register data on the universe of Swedish manufacturing startups founded 1998–2014, we find that born globals are a very small group of firms whose long-run size and growth do not outperform other exporting firms. We also show that removing continuing firms and spinouts from the analysis is crucial for obtaining correct results. Thus, the notion that born globals are superior to firms that follow a more gradual internationalization process, a conclusion largely based on case studies and surveys, does not withstand scrutiny. Policymakers must therefore be aware that encouraging more born globals need not necessarily lead to large benefits for the overall economy, especially in terms of employment.

Journal of World Business

Journal of Family Business Management – DOI: https://doi.org/10.1108/JFBM-03-2019-0016

Embeddedness and entrepreneurial traditions: Entrepreneurship of Bukharian Jews in diaspora

Elo, M. and Dana, L.-P. 

A qualitative multiple case study examining the role of diaspora embeddedness, extended family, ethno-religious-, cultural- and social ties and relevant structures shaping diaspora entrepreneurship. The authors found that social ties and diaspora embeddedness create dynamism fostering entrepreneurial identity as a part of the Bukharian culture, and as a preferred career option in the context of Bukharian Jews in diaspora. Diasporic family businesses are products of culture and tradition that migrate to new locations with families and communities, not as disconnected business entities.

European Journal of International Management – DOI: https://doi.org/10.1504/EJIM.2019.10017015

Diaspora networks in international marketing: How do ethnic products diffuse to foreign markets?

Elo, M., Minto-Coy, I., Costa e Silva, S., & Zhang , X.

While diaspora networks can be instrumental for diffusion, their allin- one role has remained underexplored in international marketing management literature. Diaspora actors function as part of the channel system, diffusing ethnic products and creating the highway to new markets. Globalisation has increased geographic dispersion and plurality, fostering their participation in international business as connectors. To this end, exporting firms benefit from diaspora resources while co-creating participant distribution. This mechanism the invisible diaspora hand shapes the internationalisation processes of products and ethnic value creation on behalf of the firm. This study examines how ethnic products diffuse across borders, and how diaspora networks participate in the international diffusion and ethnic crossover process by orchestrating resources across contexts and networks. The findings contribute to advancing our understanding of product diffusion and mainstreaming, and theorising on the role of transnational diaspora in international market entry, product diffusion and international marketing.