Accelerated Internationalization in Emerging Markets: Empirical Evidence from Brazilian Technology-Based Firms
AbstractThis paper offers an analysis into the external factors influencing the accelerated internationalization of technology-based firms (TBFs) in the context of an emerging country, Brazil. This type of firm is typically called born global and has been reported mainly in high technology sectors and from developed countries. A survey was applied to small and medium Brazilian TBFs. Logistic regression was used to test the research hypotheses. The results suggest that new and small Brazilian technology-based firms, which followed an accelerated internationalization process, are most likely to be integrated into a global production chain. Results also show that TBFs which take more than five years to enter the international market, benefit more from the location in an innovation habitat, the partnerships in the home country, and the pro-internationalization government policies. Therefore, this research contributes to a better understanding of the phenomenon and points to new perspectives of studies.
Alvarez, E.R., 2004. Sources of export success in small and medium sized enterprises: the impact of public programs. International Business Review 13 (3),383–400.
Apex- Brazil (2012). Brazilian Federal Export and Investment Promotion Agency. Projects for High Technology and Health. Available at: http://www.apexbrasil.com.br/portal/.
Anprotec (2011). Associação Nacional de Entidades Promotoras de Empreendimentos Inovadores. Retrieved from: http://www.anprotec.org.br
Autio, E., Sapienza, H., Almeida, J. (2000). Effects of age at entry, knowledge intensity, and imitability on international growth. Academy of Management Journal, 43, (5), 909-924.
Becchetti, L.; Rossi, S. P. (2000). The positive effect of industrial district on the export performance of Italian firms. Review of Industrial Organization, 16(1), 53-68.
Bell, J., McNaughton, R. (2000). Born global firms: a challenge to public policy in support of internationalization. Marketing in a Global Economy, 176-185.
Bloodgood, J. M., Sapienza, H. J., Almeida, J. G. (1996). The internationalization of new high-potential US ventures: Antecedents and outcomes. Entrepreneurship Theory and Practice, 20, 61-76.
Bruton, G. D., Ahlstrom, D., Obloj, K. (2008). Entrepreneurship in emerging economies: Where are we today and where should the research go in the future. Entrepreneurship theory and practice, 32(1), 1-14.
Chaminade, C., Vang, J. (2008). Globalisation of knowledge production and regional innovation policy: Supporting specialized hubs in the Bangalore software industry. Research Policy, 37(10), 1684-1696.
Coviello, N. E. (2006). The network dynamics of international new ventures. Journal of International Business Studies, 37(5), 713-731.
Dib, L. A., Rocha, A., Silva, J. F. (2010). The internationalization process of Brazilian software firms and the born global phenomenon: Examining firm, network, and entrepreneur variables. Journal of International Entrepreneurship, 8 (3), 233-253.
Dunning, J. H. (1980). Toward an eclectic theory of international production: Some empirical tests. Journal of International Business Studies, 11(1), 9-31.
Etzkowitz, H., de Mello, J. M. C., Almeida, M. (2005). Towards “meta-innovation” in Brazil: The evolution of the incubator and the emergence of a triple helix. Research Policy, 34(4), 411-424.
Fabian, A. P. F., Molina, H. (2009). Understanding decisions to internationalize by small and medium-sized firms located in an emerging market. Management International Review, 49(5), 537-563.
Fahy, J. (2002) ‘A Resource-based Analysis of Sustainable Competitive Advantage in a Global Environment’, International Business Review 11(1): 57–77.
Fernhaber, S. A., Gilbert, B. A., McDougall, P. P. (2008). International entrepreneurship and geographic location: an empirical examination of new venture internationalization. Journal of International Business Studies, 39(2), 267-290.
Fernhaber, S. A., McDougall, P. P., Oviatt, B. M. (2007). Exploring the role of industry structure in new venture internationalization. Entrepreneurship Theory and Practice, 31(4), 517-542.
Gabrielsson, M.; Sasi, V.; Darling, J. (2004). Finance strategies of rapidly-growing finnish SMEs: born internationals and born globals. European Business Review, 16, 590-604.
Giuliani, E., Pietrobelli, C., Rabellotti, R. (2005). Upgrading in global value chains: lessons from Latin American clusters. World development, 33(4), 549-573.
Goldstein, A. (2001). From national champion to global player: explaining the success of Embraer. Centre for Brazilian Studies, University of Oxford.
Gilbert, B. A., McDougall, P. P., Audretsch, D. B. (2008). Clusters, knowledge spillovers and new venture performance: An empirical examination. Journal of Business Venturing, 23(4), 405-422.
Guillén, M., García-Canal, E. (2009) The American Model of the Multinational Firm and the “New” Multinationals from Emerging Economies. Academy of Management Perspectives, 23(2), 23-35.
Hair, J., Black, W., Babin, B., Anderson, R., Tatham, R. (2006). Análise Multivariada de dados. 6a. edição. Porto Alegre: Bookman.
Ibeh, K. I. (2003). Toward a contingency framework of export entrepreneurship: conceptualisations and empirical evidence. Small Business Economics, 20(1), 49-68.
Kanna, T, Palepu, K. (2010). Winning in Emerging Markets: A Road Map for Strategy and Execution. Harvard Business School Publishing.
Keupp, M. M., Gassmann, O. (2009). The past and the future of international entrepreneurship: a review and suggestions for developing the field. Journal of Management, 35(3), 600-633.
Kiss, A. N., Danis, W. M., Cavusgil, S., (2012). International entrepreneurship research in emerging economies: A critical review and research agenda. Journal of Business Venturing, 27 (2), 266–290.
Knight, G. A, Kim, D. (2009). International business competence and the contemporary firm. Journal of International Business Studies, 40 (2), 255-273.
Lee, C. M. (Ed.). (2000). The Silicon Valley edge: A habitat for innovation and entrepreneurship. Stanford University Press.
Loane, S., Bell, J. (2006). Rapid internationalisation among entrepreneurial firms in Australia, Canada, Ireland and New Zealand: An extension to the network approach. International Marketing Review, 23(5), 467-485.
Lopez, L. E., Kundu, S. K., Ciravegna, L. (2008). Born global or born regional? Evidence from an exploratory study in the Costa Rican software industry. Journal of International Business Studies, 40(7), 1228-1238.
Madsen, T. K., Servais, P. (1997). The internationalization of born globals – an evolutionary process? International Business Review, 6, (6), 561-583.
Moen, O., Servais, P. (2002). Born global or gradual global? Examining the export behavior of small and medium-sized enterprises. Journal of International Marketing, 10(3), 49-72.
OCDE (2003). Science, Technology and Industry Scoreboard. Paris.
Oviatt, B. M., Mcdougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25 (1), 45-64.
Persinger, E. S., Civi, E., Vostina, S. W. (2007). The Born Global Entrepreneur In Emerging Economies. International Business & Economics Research Journal, 6, (3), 73-82.
Ramamurti, R. (2012). What is really different about emerging market multinationals?. Global Strategy Journal, 2(1), 41-47.
Rialp, A. C., Rialp, J. C., Knight, G. A. (2005). The phenomenon early internationalizing firms: what do we know after a decade (1993-2003) of scientific inquiry? International Business Review, 14, 147-166.
Servais, P., Zucchella, A., Palamara, G. (2007). International entrepreneurship and sourcing: international value chain of small firms. Journal of Euromarketing, 16(1-2), 105-117.
Suzuki, K. I., Kim, S. H., Bae, Z. T. (2002). Entrepreneurship in Japan and Silicon Valley: a comparative study. Technovation, 22(10), 595-606.
Tan, J. (2006). Growth of industry clusters and innovation: Lessons from Beijing Zhongguancun Science Park. Journal of Business Venturing, 21(6), 827-850.
Vapola, T. J., Tossavainen, P., Gabrielsson, M. (2008). The battleship strategy: The complementing role of born globals in MNC’s new opportunity creation. Journal of International Entrepreneurship, 6(1), 1-21.
Varma, S. (2011). Born global acquirers from Indian IT: an exploratory case study. International Journal of Emerging Markets, 6(4), 351-368.
World Bank. (2012). World Development Indicators database, available at: http://databank.worldbank.org/databank/download/GDP.pdf (accessed 12 May 2013)
Zahra, S., George, G. (2002). International entrepreneurship: the current status of the field and future research agenda. In: Hitt, M.; Ireland, R.; Camp, M.; Sexton, D. (Eds.). Strategic leadership: creating a new mindset. London, UK: Blackwell, 255-288.
Zou, H. A., Ghauri, P. N. 2010. Internationalizing by learning: the case of Chinese high-tech new ventures. International Marketing Review, 27(2): 223-44.
Zucchella, A., Palamara, G., Denicolai, S. (2007). The drivers of the early internationalization of the firm. Journal of World Business, 42(3), 268-280
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).