Born Global Firms

Chapter 4

Theoretical Explanations and Frameworks on Born Global Firms

Let us now consider specific theories and frameworks that have been applied to explaining born global firms. The founders of born globals are individuals who pursue international opportunities from or near the founding of the firm. They undertake international business from the time of venture formation, developing international competencies and avoiding path-dependence on domestic competencies that the firm may not be able to shift out of due to inertial forces. Scholars have argued that the formation process of born globals is not well explained by existing international business theories (e.g., Knight & Cavusgil, 1995; McDougall et al., 1994). This is partly because traditional ...