Born Global

Question 1

Traditional model (Uppsala model)

Answer 1

Johanson and Vahlne (1977):
Sequential and developmental process of getting knowledge about internationalization - going global is a slow progression (risk-averse)

Question 2

International new ventures

Answer 2

Oviatt and McDougall (1994) JIBS

International for the very first moment, using resources from a multicultural standpoint

Question 3

Why we didn’t know about INVs

Answer 3

• Dominance of Chandlerian industrial enterprise as a distraction
• Uppsala model supported that these types of enterprises didn’t exist

Question 4

Chandler’s 4 (70s and 80s)

Answer 4

Strategist at Harvard that studied: Standard oil, Du Pont, GM and Sears.

• large-scale modern managerial enterprise when thinking of international businesses
• tendency to study US firms as the US business schools were more prominent

Question 5

OandM model - challenge

Answer 5

• OandMC companies can develop very quickly: build international team with knowledge about global market

Question 6

Accelerated process of internationalism

Answer 6

Speed, internet, homogeneity of taste/culture (globalisation), travel, mobility, ease of communication and data transfer - make INVs possible in 20th century
- Elements of mimetic behaviour (Di Maggio & Powell) firms start copying each other because of less uncertainty and the possibility to achieve

Question 7

Four types of INVs

Answer 7

IB evolve and appear differently, the don’t develop and grown in the same pattern and manner:

1. Export/import start-up
2. Multinational trader
3. Geographically focused start-up (privileged knowledge networks, connections)
4. Global start-up

Question 8

BG vs INV

Answer 8

Born Global (JIBS) - Knight & Cavusgil, 2004
BG = Young firm active through early export sales 
INV = sophisticated version, it involves more activities