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What’s so special about born globals, their entrepreneurs or their business model?
Source: ideas.repec.org
Article summary:
1. Born global firms (BGs) are those that make large foreign sales at birth or shortly afterwards, which is considered an anomaly in international business.
2. While previous research has focused on the exceptional resources and international orientation of BG entrepreneurs, the role of their business model (BM) has been overlooked.
3. The study found that a firm's focus on a niche BM and the international work experience of its founders were statistically significant factors in reaching BG status within a three-year time span, while technological intensity and domestic networks were not significant.
Article analysis:
The article "What’s so special about born globals, their entrepreneurs or their business model?" by Antonio Majocchi and Birgit Hagen explores the factors that contribute to the success of born global firms. The authors argue that while previous research has focused on the exceptional resources and international orientation of born global entrepreneurs, the role of the firm's business model has been overlooked.
The study analyzes a sample of Italian SMEs to determine how long it took them to reach born global status (25% foreign sales over total sales) within a three-year time span. The authors find that among the variables related to international entrepreneurship, a firm's technological intensity, founders' foreign language fluency and international work experience, and use of domestic networks are statistically insignificant. However, variables measuring a firm's focus on a niche business model are statistically significant in explaining variance with greater accuracy.
Overall, the article provides valuable insights into the importance of a niche business model for born global firms. However, there are some potential biases and limitations in this study. Firstly, the sample size is limited to Italian SMEs, which may not be representative of other countries or industries. Secondly, while the authors acknowledge that other factors such as cultural distance and institutional barriers may also play a role in born global success, these are not explored in depth.
Additionally, there is some one-sided reporting in this article as it focuses solely on the positive aspects of niche business models for born global firms without considering any potential drawbacks or risks associated with this approach. Furthermore, there is no exploration of counterarguments or alternative perspectives on what contributes to born global success.
In terms of promotional content or partiality, there is no evidence to suggest that the authors have any conflicts of interest or biases towards certain types of businesses or industries. However, it should be noted that this study was conducted in collaboration with LUISS Guido Carli University and Università di Pavia which may have influenced the research design and findings.
Overall, while this article provides valuable insights into the importance of a niche business model for born global firms, there are some potential biases and limitations that should be taken into consideration when interpreting the results. Further research is needed to explore the role of other factors such as cultural distance and institutional barriers in born global success.
Topics for further research:
Cultural distance and born global success
Institutional barriers and born global firms
Risks and drawbacks of niche business models for born global firms
Alternative perspectives on born global success factors
Born global success in industries other than Italian SMEs
Born global success in different countries and regions