Capítulo 4. Born global versus gradual internationalisation strategies: a multiple case study of knowledge-intensive services
| Autor | Clara Martos Martínez y Marta Muñoz Guarasa |
| Cargo del Autor | Universidad de Jaén |
| Páginas | 79-106 |
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CAPÍTULO 4
BORN GLOBAL VERSUS GRADUAL
INTERNATIONALISATION STRATEGIES: A MULTIPLE
CASE STUDY OF KNOWLEDGE-INTENSIVE SERVICES
CLARA MARTOS MARTÍNEZ
Universidad de Jaén
MARTA MUÑOZ GUARASA
Universidad de Jaén
1. INTRODUCTION
La Globalisation, technological development and new prospects for
global growth beyond national borders have forced many companies to
diversify internationally. Services have been among the fastest growing
sectors in recent years.
In this paper we focus on knowledge-intensive services (KIS). Their im-
portance lies in the fact that they are one of the most dynamic activities
in the service sector in most industrialised countries, mainly due to the
major changes occurring in the structures of production and organisation
and the expanding ties and interconnections between economic activi-
ties (Strambach, 2001). Moreover, they play an important role in inno-
vation systems and have become a category of special interest due to the
positive externalities they generate, their global competitive nature and
their role in driving productivity growth, as they are considered as being
among the most innovative in the economy (Desmarchelier et al., 2013).
Specifically, we focus on KIS firms in Southern Spain (Andalusia), as it
is the region with the greatest number of such firms operating after Ma-
drid and Catalonia (García-Manjón, 2008). In particular, we study re-
newable energy and consultancy firms, as these have the largest pres-
ence in the region of study according to Muñoz-Guarasa (dir.) et al.
(2013).
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Internationalisation allows these types of companies to increase produc-
tion, take advantage of economies of scale, reduce labour costs and
product prices, and improve market position, among other advantages.
Therefore, the more that firms embrace internationalisation, the higher
the level of exports and the greater the positive effects for both the en-
trepreneur and the economy. Companies tend to internationalise through
either a gradual (Johanson & Vahlne, 1977) or an accelerated process.
Those that achieve the latter are known as Born Globals and are charac-
terised by starting their international expansion immediately or within
three years of their founding (Knight et al., 2004) and by generating at
least 10% of total sales in foreign countries (Crick, 2009). In particular,
KIS firms tend to have accelerated internationalisation behaviour (Mar-
tos-Martínez & Muñoz-Guarasa, 2020); however, many of them inter-
nationalise gradually. Therefore, we ask: how can KIS firms internation-
alise and why do some KIS firms internationalise gradually and others
in an accelerated way?.
The main objective of this paper is to learn "how" KIS can become in-
ternational and "why" some KIS internationalise gradually and others in
an accelerated manner, as there is no previous research that sheds light
on the conversion of KIS into Born Globals. This work will contribute
to the literature by adding a set of propositions that will serve as a guide
for those KIS that want to become Born Global and for those that have
been going through a gradual internationalisation process and wish to
accelerate it. Therefore, the main contribution of this paper is to provide
the keys for KIS firms to internationalise, which has not been studied so
far. Thus, this paper adds new knowledge to the existing literature.
In this work we have conducted a case study analysis that focuses on
four KIS companies (two Born Globals and two non-Born Globals). We
began by conducting personal, semi-structured and recorded interviews
at the offices of the companies with the founders or those responsible
for internationalisation. We then coded the data and analysed the cases
individually and comparatively, which led us to obtain the results and
make the propositions. This protocol has also allowed us to add rigor,
reliability and validity to the research.
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