How are born globals different from non-born global firms? Evidence from korean small-and medium-sized enterprises

Byoungho Jin, Hongjoo Woo, Jae Eun Chung

Research output: Contribution to journalArticle

2 Citations (Scopus)

Abstract

Born global (BG) firms internationalize rapidly at or near their inception to the world’s multiple lead markets such as the US and Europe,which contrasts with the classic internationalization theory (i.e.,Stage model) that views internationalization as a gradual process. Most BG studies focus on describing BGs and why firms choose rapid internationalization has yet to be sufficiently addressed. This study was designed to understand what factors are related to BG among Korean small- and medium-sized enterprises (SMEs). Bounded by the liability of smallness,SMEs are deficient in financial and human resources,which are typically known as inhibitors of internationalization. Nonetheless,some SMEs internationalize rapidly at or near founding beyond the home continent and become BGs. In order to clearly identify factors related to BGs,two groups (BGs versus Non-BGs) were predicted by eight potential BG related factors. Analyses of 480 survey data collected from Korean SMEs nationwide revealed that among the eight BG related factors,five are found to be significant. That is,Korean SMEs with high entrepreneurial proclivity,highly unique product development,high R&D investment,less foreign network and export consumer products were discovered to be BGs. The findings of this study contribute to advancing BG theories in that,it provides empirical evidence that clearly articulates the “why rapid” aspect of BGs.

Original languageEnglish
Pages (from-to)1-20
Number of pages20
JournalJournal of Korea Trade
Volume19
Issue number3
Publication statusPublished - 2015 Jan 1

Fingerprint

Small and medium-sized enterprises
Born global
Internationalization
Factors
Inhibitor
Human resources
Liability
Empirical evidence
Product development
Born global firms
Stage model
Consumer products
Financial resources
Survey data

All Science Journal Classification (ASJC) codes

  • Business and International Management
  • Industrial relations
  • Economics, Econometrics and Finance(all)

Cite this

@article{2d5c17d664cc492ba111a50ad91d5293,
title = "How are born globals different from non-born global firms?: Evidence from korean small-and medium-sized enterprises",
abstract = "Born global (BG) firms internationalize rapidly at or near their inception to the world’s multiple lead markets such as the US and Europe,which contrasts with the classic internationalization theory (i.e.,Stage model) that views internationalization as a gradual process. Most BG studies focus on describing BGs and why firms choose rapid internationalization has yet to be sufficiently addressed. This study was designed to understand what factors are related to BG among Korean small- and medium-sized enterprises (SMEs). Bounded by the liability of smallness,SMEs are deficient in financial and human resources,which are typically known as inhibitors of internationalization. Nonetheless,some SMEs internationalize rapidly at or near founding beyond the home continent and become BGs. In order to clearly identify factors related to BGs,two groups (BGs versus Non-BGs) were predicted by eight potential BG related factors. Analyses of 480 survey data collected from Korean SMEs nationwide revealed that among the eight BG related factors,five are found to be significant. That is,Korean SMEs with high entrepreneurial proclivity,highly unique product development,high R&D investment,less foreign network and export consumer products were discovered to be BGs. The findings of this study contribute to advancing BG theories in that,it provides empirical evidence that clearly articulates the “why rapid” aspect of BGs.",
author = "Byoungho Jin and Hongjoo Woo and Chung, {Jae Eun}",
year = "2015",
month = "1",
day = "1",
language = "English",
volume = "19",
pages = "1--20",
journal = "Journal of Korea Trade",
issn = "1229-828X",
publisher = "Emerald Group Publishing Ltd.",
number = "3",

}

How are born globals different from non-born global firms? Evidence from korean small-and medium-sized enterprises. / Jin, Byoungho; Woo, Hongjoo; Chung, Jae Eun.

In: Journal of Korea Trade, Vol. 19, No. 3, 01.01.2015, p. 1-20.

Research output: Contribution to journalArticle

TY - JOUR

T1 - How are born globals different from non-born global firms?

T2 - Evidence from korean small-and medium-sized enterprises

AU - Jin, Byoungho

AU - Woo, Hongjoo

AU - Chung, Jae Eun

PY - 2015/1/1

Y1 - 2015/1/1

N2 - Born global (BG) firms internationalize rapidly at or near their inception to the world’s multiple lead markets such as the US and Europe,which contrasts with the classic internationalization theory (i.e.,Stage model) that views internationalization as a gradual process. Most BG studies focus on describing BGs and why firms choose rapid internationalization has yet to be sufficiently addressed. This study was designed to understand what factors are related to BG among Korean small- and medium-sized enterprises (SMEs). Bounded by the liability of smallness,SMEs are deficient in financial and human resources,which are typically known as inhibitors of internationalization. Nonetheless,some SMEs internationalize rapidly at or near founding beyond the home continent and become BGs. In order to clearly identify factors related to BGs,two groups (BGs versus Non-BGs) were predicted by eight potential BG related factors. Analyses of 480 survey data collected from Korean SMEs nationwide revealed that among the eight BG related factors,five are found to be significant. That is,Korean SMEs with high entrepreneurial proclivity,highly unique product development,high R&D investment,less foreign network and export consumer products were discovered to be BGs. The findings of this study contribute to advancing BG theories in that,it provides empirical evidence that clearly articulates the “why rapid” aspect of BGs.

AB - Born global (BG) firms internationalize rapidly at or near their inception to the world’s multiple lead markets such as the US and Europe,which contrasts with the classic internationalization theory (i.e.,Stage model) that views internationalization as a gradual process. Most BG studies focus on describing BGs and why firms choose rapid internationalization has yet to be sufficiently addressed. This study was designed to understand what factors are related to BG among Korean small- and medium-sized enterprises (SMEs). Bounded by the liability of smallness,SMEs are deficient in financial and human resources,which are typically known as inhibitors of internationalization. Nonetheless,some SMEs internationalize rapidly at or near founding beyond the home continent and become BGs. In order to clearly identify factors related to BGs,two groups (BGs versus Non-BGs) were predicted by eight potential BG related factors. Analyses of 480 survey data collected from Korean SMEs nationwide revealed that among the eight BG related factors,five are found to be significant. That is,Korean SMEs with high entrepreneurial proclivity,highly unique product development,high R&D investment,less foreign network and export consumer products were discovered to be BGs. The findings of this study contribute to advancing BG theories in that,it provides empirical evidence that clearly articulates the “why rapid” aspect of BGs.

UR - http://www.scopus.com/inward/record.url?scp=84996587393&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84996587393&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:84996587393

VL - 19

SP - 1

EP - 20

JO - Journal of Korea Trade

JF - Journal of Korea Trade

SN - 1229-828X

IS - 3

ER -