Rapid internationalisation enabled by the Internet: The case of a knowledge intensive company

In this paper we will show how knowledge intensive firms can quicken their internationalisation by using the Internet as a sales channel. When properly applied the Internet can provide a way to decrease the effects of liability of foreignness and resource scarcity, and herewith contribute to an increased speed of internationalisation. The focus of the empirical research is on a Finnish knowledge intensive company and the development of its international operations and sales channels. The study applies the longitudinal case study method when examining in-depth the development of Futuremark Corporation for a period of five year

Essays on resource scarcity, early rapid internationalization and born global firms

This dissertation focuses on a relatively new organizational form: Born Globals, or small and medium sized firms that internationalize rapidly from the start. For Born Global firms, globalization at an early stage of business development and speed of internationalization are paramount, which is what distinguishes them from small and medium enterprises (SMEs) that internationalize in a traditional manner, i.e. in a gradual and step-by-step manner. Rapid internationalization and/ or globalization puts extremely high pressure on firms, with respect to obtaining and organizing resources that allow for faster and deeper global commitment. This issue is addressed in the dissertation’s overarching research problem of “how Born Global firms deal with resource scarcity to internationalize/ globalize rapidly from the start”. The dissertation consists of seven main chapters, in addition to an introduction and a conclusion. The absence of a suitable internationalization theory for the Born Global or international new venture (INV) firm is addressed in chapter two. In chapter three, a longitudinal process perspective on the financing strategies of Finnish Born Globals is adopted. The fourth chapter explores a relatively recent phenomenon – the Internet – and its role in decreasing resource scarcity and liability of foreignness for the INV. In the fifth chapter the focus is on the role of networks in the INV’s internationalization process, specifically formal and informal networks of the founders and the firms. Chapter six is a comparative study of INVs in two small and open economies. The aim in the article is to explore whether business and social networks vary between these countries. Chapter seven investigates critical events in the globalization process of a Born Global. The purpose in chapter eight is to identify appropriate strategic actions that can increase global growth despite the adversity created by scarce resources. The focus of this thesis is resource constraints and how they affect Born Global firms in various circumstances over time, in networks, in changing markets, and at the industry and country levels. The key themes in the chapters – financing, networks and the Internet – relate to access to resources, and the findings show that the constraints and strategies differ at different stages of internationalization and globalization. Each of the chapters containing this thesis offers specific suggestions for future research

International new ventures and social networks: Advantage or liability?

Summary This research seeks to expand our knowledge of the role of networks, particularly social networks, in the rapid internationalisation process. To deepen our understanding of this process, we review the network approach on internationalisation in light of the social network perspective and recently published empirical findings on the internationalisation of International New Ventures (INVs). We also analyse the internationalisation process of ten Information and Communication Technology (ICT) case companies from Finland. The findings in this study reveal, in line with the network theory of internationalisation that the case firms gained access to and mobilised resources through established long-term relationships [Johanson, J. and Mattsson, L. G. (1987) Interorganizational relations in industrial systems: A network approach compared with the transaction-cost approach. International Studies of Management & Organization, 17(1), 34-48, Johanson, J. and Mattsson, L. G. (1988) Internationalization in industrial systems - A network approach. In Strategies in global competition, (eds) N. Hood, and J. E. Vahlne, Croom Helm, London], but the relationships were those of the founders, not those of the firms. The relationships are characterised by a high level of trust and commitment, and particularly in the early phases of internationalisation, the INVs focus on exploiting the existing ties instead of adding new ties, a path dependent process. We find that it is useful to divide the internationalisation process into two phases: early internationalisation, which is aimed at gaining access to global business; and subsequent international/global growth. The empirical evidence shows that those firms who rely on dyadic relationships are able to complete the first phase successfully. The dyadic relationships, however, become a limitation during the phase of international growth. Only those firms that manage to complete the transition from dyadic relationships to multilateral network relationships achieve significant international growth.Internationalisation Globalisation New ventures SME ICT Social networks