Sequencing the expansion of geographic scope and foreign operations by “born global” firms

Niron Hashai
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Niron Hashai: Jerusalem School of Business Administration, The Hebrew University, Jerusalem, Israel

Journal of International Business Studies, 2011, vol. 42, issue 8, 995-1015

Abstract: “Born global” firms are not actually “born” global, but rather internationalize rapidly from their inception by expanding their geographic scope and extent of foreign operations. However, it remains unclear whether such firms: (1) simultaneously expand along both dimensions; (2) focus on expanding along a single dimension at a given time, and switch interchangeably between expanding geographic scope and extent of foreign operations in subsequent periods; or (3) stick solely to a specific internationalization path over several subsequent periods. This study theorizes and empirically demonstrates that born global firms stick to a dominant internationalization path over subsequent periods. Arguably, this phenomenon reflects managerial efforts to reduce the perceived risk of internationalization, and their preference to develop and leverage capabilities that are specific to either of the internationalization paths until the economies of further expanding this path are exhausted.

Date: 2011
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