Running head: BORN GLOBAL FIRMS 1

Born Global Firms

Name:
Institution
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Born Global Firms

Born global firms are businesses that seek international market presence since their

inception. The prominent characteristics of these firms are heightened activities in the global

market space from the time they are started. Also, they tend to recruit a managerial team whose

calibre equal to that of business leaders with international reputations. These firms lay great

emphasis on the quality of service or product that they offer. It is considered that their dexterity

and resilience are factors that enable them to serve both the domestic and international market

(Cavusgil et al., 2014). While most of these firms cannot be compared with multinationals

regarding numbers of employees, they still rival them in profits.

Internationalization of born global firms can be attributed to drivers of globalization.

These drivers include advancement in technology, the increase in international investments, a

sophistication of cross-border transportation systems and telecommunication (Cavusgil &

Knight, 2015). The interrelations between two or more of these factors facilitate the spread of

information on products produced by born global companies. Henceforth, the youth who form

the largest segment of the target market for these firms can access those products through mobile

phones and computers. It is important to note that these firms mainly depend on technology as

the main contributor to the success of their businesses.

Businesses that are able to internationalize from inception enjoy benefits as opposed to

those that target domestic clients. They can earn high amounts of revenue which enables them to

expand rapidly to new markets (Gaur et al., 2014). They position themselves firmly against

future competitors. Those firms are also better placed to understand other needs of the global

market and come up with innovations that cater to those demands. With a better financial
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standing successful born global firms can also buy out competitors and influence policies to

favour them.

Born global firms are enterprises which internationalize their business from their start and

depend on various driving factor for globalization to succeed. They usually target younger clients

and are based on communication and entertainment as their business models. Technology is the

main platform which they use to launch their products. They prefer establishing an international

presence as soon as possible in order to have a competitive advantage over the potential

competition. Profit is also a motivation factor for internationalization of these firms.

References
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Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities

perspective on early and rapid internationalization. Journal of International Business

Studies, 46(1), 3-16.

Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.

(2014). International business. Pearson Australia.

Gaur, A. S., Kumar, V., & Singh, D. (2014). Institutions, resources, and internationalization of

emerging economy firms. Journal of World Business, 49(1), 12-20.