Search
  • Tausif Mulla

What is a Born Global company?

Background

The ‘Born Global’ internationalization phenomenon is the tendency of certain firms to internationalize from their very inception. These firms are often characterized by their innovative business models, use of technology, and focus on global markets.

Born global companies are often considered the fastest-growing segment of the global business industry. Born global companies are considered to be the new wave of internationalization that is distinct from the traditional internationalization path. Born global companies are able to expand internationally through their internal resources and capabilities.

Examples of Born Global companies

Photo by Iyus sugiharto on Unsplash


Examples of Born Global companies

  1. Zoho Corporation is a multinational technology company that makes some of the best computer software in the world. It is best known for its online office suite, which makes it super easy to get your work done.

  2. Logitech International is a multinational manufacturer of computer peripherals and software headquartered in Lausanne, Switzerland, and Newark, California. The company is perhaps one of the earliest examples of a successful born-global firm.

The born global concept is relevant to your studies in the following ways:

  1. Born global companies are often regarded as the most profitable and fastest-growing segment of the global business industry. They are considered the new wave of internationalization that is distinct from the traditional internationalization path.

  2. Born global companies are able to expand internationally through their internal resources and capabilities.

  3. Born global companies are able to go international from the beginning and are able to do so through internal means and resources.

  4. Born global companies are able to adapt to different cultural, political, and economic environments and are able to operate in those environments with little or no need for external support.

There are a number of factors that have contributed to the rise of born global firms, including the increasing interconnectedness of the world economy and advances in technology that have made communication and transportation easier and cheaper than ever before.


There are a number of advantages that born global firms have over their more-traditional counterparts. Perhaps the most important is that they are able to tap into global markets from day one. This gives them a significant competitive advantage in terms of both cost and time. They can also benefit from a more diverse customer base, as well as a greater pool of talent to draw from.


There are some challenges that come along with being a born global firm, however. One is that these companies can sometimes find it difficult to establish a strong brand identity in such a large and competitive marketplace. Another is that they can be spread too thin, with operations in too many different countries and regions. This can make it difficult to maintain quality control and keep track of all the different moving parts. Despite these challenges, there are many reasons to believe that the born global phenomenon is here to stay. Companies that are able to successfully navigate the challenges will be well-positioned to take advantage of the many opportunities that come with being a truly global business.


Globalization Forces

There are three globalization forces that have influenced the concept of born global companies. They are market, political, and cultural forces. The following are descriptions of the three forces:

  1. Market forces refer to the economic conditions that determine the level of demand for a product or service. Market forces are the main driver of the born global concept.

  2. Political forces refer to the political conditions of a country, such as the political environment and political stability. Political forces also refer to the political and legal environment of a company.

  3. Cultural forces refer to the cultural norms, values, and beliefs of a society. They also refer to the cultural norms, values, and beliefs of a company.

The Globalization Process

There are two types of globalization: (1) internal and (2) external. Internal globalization refers to the globalization of a company through its internal resources and capabilities. External globalization refers to the globalization of a company through its external resources and capabilities.


Internal Globalization

Internal globalization refers to the globalization of a company through its internal resources and capabilities. Internal globalization can be further divided into three categories: (1) product globalization, (2) human capital globalization, and (3) company globalization.

1) Product Globalization

Product globalization refers to the globalization of a company’s product through its internal resources and capabilities. The main objective of product globalization is to be able to provide products that are consistent across all markets. For example, a globalized product is a product that is produced in one country and marketed in other countries. Product globalization allows companies to expand their business across different countries without the need to build or acquire factories or plants in other countries.

2) Human Capital Globalization

Human capital globalization refers to the globalization of a company’s human resources through its internal resources and capabilities. Human capital globalization allows companies to recruit and retain employees from different countries. This is especially important for companies that are interested in hiring employees with specific skills and expertise.

3) Company Globalization

Company globalization refers to the globalization of a company’s organizational structure through its internal resources and capabilities. Company globalization allows companies to organize their operations in a way that is consistent across all markets.

External Globalization

External globalization refers to the globalization of a company through its external resources and capabilities. External globalization can be further divided into three categories: (1) market-oriented, (2) government-oriented, and (3) network-oriented.

1) Market-Oriented

Market-oriented external globalization refers to the globalization of a company through the market forces that exist between the company and the target market. Market-oriented external globalization involves acquiring other companies and integrating them into the company’s operations. Market-oriented external globalization is often the most expensive and risky type of external globalization.

2) Government-Oriented

Government-oriented external globalization refers to the globalization of a company through the government-owned and controlled companies that exist in the target market. Government-oriented external globalization involves acquiring or partnering with government-owned and controlled companies in the target market.

3) Network-Oriented

Network-oriented external globalization refers to the globalization of a company through the business networks that exist in the target market. Network-oriented external globalization involves partnering with business networks in the target market. Network-oriented external globalization is less expensive and less risky than market-oriented external globalization.


3 key drivers of born global internationalization:

1. Technological advances have made it possible for companies to operate globally from day one.

2. The growth of global markets has created opportunities for companies to sell their products and services around the world.

3. The rise of the Internet has allowed companies to reach customers and suppliers anywhere in the world at a low cost.


4 types of Born Global companies

There are four main types of born global companies. The following are descriptions of the four types of born global companies:

  1. Pure-born global companies are those that are fully integrated and operated in the same manner across all markets. Pure-born global companies are often regarded as the fastest-growing segment of the global business industry.

  2. Hybrid-born global companies are those that are integrated and operated in the same manner across most markets but are different in a few markets. Hybrid-born global companies are often regarded as the fastest-growing segment of the global business industry.

  3. Semi-global companies are those that are operated in the same manner across all markets but are not integrated across all markets. Semi-global companies are often regarded as the fastest-growing segment of the global business industry.

  4. Semi-born global companies are those that are integrated across most markets but are operated differently across some markets. Semi-born global companies are often regarded as the fastest-growing segment of the global business industry.

3 Stages of the Born Global Concept

The following are descriptions of the three stages:

  1. Birth refers to the period when a company goes international from the beginning and is able to do so through internal means and resources.

  2. Growth refers to the period when a company expands its operations across different countries.

  3. Transformation refers to the period when a company adapts to the different cultural, political, and economic environments and is able to operate in those environments with little or no need for external support.

Conclusion

The globalization of business is an unstoppable force that is constantly changing the way we do business. The born global concept is one of the latest changes to the globalization of business. The born global concept is a new way of thinking about globalization that is based on the idea that companies can be born global. The "Born global" firms are more likely to engage in international activities from the outset, to have a more global orientation, and to use more internationalized marketing and organizational structures. These firms are also more likely to be innovative and take risks. The born global concept is a new way of thinking about globalization.

Related Posts

See All