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Gradually internationalizing 'born global' firms: an oxymoron?

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  • Hashai, Niron
  • Almor, Tamar

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.

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  • Hashai, Niron & Almor, Tamar, 2004. "Gradually internationalizing 'born global' firms: an oxymoron?," International Business Review, Elsevier, vol. 13(4), pages 465-483, August.
    • Handle: RePEc:eee:iburev:v:13:y:2004:i:4:p:465-483
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