SI Seminar with Jean-Francois Hennart

There is almost unanimity among International Business (IB) scholars that it takes more time to expand internationally than domestically. Hence the surprise with Born Globals (BGs), firms that make large foreign sales at birth or shortly afterwards. Explanations given for this anomaly have been the BGs’ exceptional resources, especially their advanced technology and the high international orientation of their entrepreneurs, as well as their reliance on cheaper internationalization strategies--the internet and networks. Almost completely overlooked has been the role played by the firm’s business model. We analyze the time it took for a sample of Italian SMEs to reach BG status (25% foreign sales over total sales within 3 years from first sales). Entering both traditional and business model variables, we find most of the former, such as a firm’s technological intensity, the number of years their founders studied abroad, and their foreign language fluency, to be statistically insignificant, while business model variables, such as the firm’s number of competitors, the transportation costs it faces, how much of its marketing mix it adapts to foreign markets, and whether it performs after-sales service there, are better predictors of the time needed to attain BG status.

The seminar takes places in Kilen, room 2.53 and is open to all.