Susan Freeman

How smaller born-global firms use networks and alliances to overcome constraints to rapid internationalization

The authors identify the following key constraints that smaller born-global firms face: lack of economies of scale, lack of resources (financial and knowledge), and aversion to risk taking. The authors explore how such firms overcome these constraints by using technology to achieve competitive advantage and by networking competencies to develop a range of alliances and collaborative partnerships. Thus, the article focuses on a particular aspect of business-to-business marketing, namely, how small firms achieve rapid growth internationally through alliances with suppliers, distributors, and joint-venture partners and how these relationships change over time to meet the changing needs of the partners.

Toward a Typology of Commitment States Among Managers of Born-Global Firms: A Study of Accelerated Internationalization

Substantial scholarly work has shed much light on the development of a contemporary global environment—namely, the phenomenon of born-global firms. These young entrepreneurial firms, which take on internationalization early in their evolution, are now found in large numbers in most economies, especially in smaller, saturated, developed markets. In this article, the authors advance some theoretical explanations regarding the behavior of these firms. In the current Australian case-based study, rather than engaging in a firm-level analysis, the authors focus on the attitudinal orientations of senior management in this new breed of internationally active firms. In contrast to an incremental approach, the authors offer a theoretical explanation that integrates the network perspective and resource-based view with international entrepreneurship. Their exploration of the managerial mind-set of these smaller born-global firms leads to the identification of four states of commitment to accelerated internationalization by top management. Delineating these states should assist managers in achieving their accelerated internationalization objectives. Any of the four attitudinal mind-sets facilitates internationalization, but the strategist state adopts a more benevolent, collaborative behavioral stance designed to preserve key relationships. The strategist also avoids the short-term orientation, competitiveness, and self-interest of the responder, the opportunist, and the experimentalist.

Professional service firms entering emerging markets: the role of network relationships

Purpose – The purpose of this paper is to identify key barriers to internationalisation in emerging markets (EMs) for professional service firms (PSFs) from developed markets and to explain how PSFs use social networks to participate within EMs of Asia and overcome these barriers. The paper aims to provide a framework of this process.Design/methodology/approach – A case‐based research design is used to explore key professional service industries (legal, media consulting and financial), providing three case studies, in a developed market (Australia) that are expanding rapidly into EMs (Thailand, Malaysia, and Vietnam) of Asia.Findings – The elements of orientating, positioning and timing were identified as critical in the context of foreign entry, with the network perspective providing a useful theoretical explanation of this process and underpinning the conceptual framework. Key barriers to internationalisation in EMs for PSFs from developed markets are identified: face‐to‐face communication, language, cu...

The influence of national culture on dissolution communication strategies in Western versus Asian business relationships: a theoretical model

Identifies the communication strategies available to companies when dissolving cross‐cultural inter‐organisational relationships to achieve effective (cooperative) outcomes. First, addresses the importance of communication dissolution, and proposes a typology of available communication strategies. Second, emphasises the importance of understanding cultural diversity in business relationships in general and dissolution in particular. Third, proposes two related theoretical frameworks. The first addresses different conflict management styles that bridge the gap between dissolution communication strategies and the cultural context in which the actors are embedded. The second is a theoretical model for analysing dissolution process in a cross‐cultural business relationship context. Proposes the independent variable, culture, as providing a frame of reference by which meaning and intent are assigned by the foreign company to the communications of the terminating company (disengager), thus affecting the choice of dissolution strategy.

Strategic re‐structuring by born‐globals using outward and inward‐oriented activity

Purpose – Current conceptualizations of born‐globals lack a full theoretical explanation of strategic re‐structuring through the use of outward and inward‐oriented activity and the processes of de‐internationalization and re‐internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born‐globals by addressing two questions. How do managers move through the de‐internationalization (exit) to re‐internationalization (re‐entry) process? How do they choose their patterns of internationalization?Design/methodology/approach – To address these research gaps, this study draws on 26 in‐depth interviews with senior managers across nine Australian born‐globals.Findings – Moving between outward and inward‐oriented activity as they de‐internationalize and re...

Networks and Australian professional services in newly emerging markets of Asia

Purpose – To understand better how professional services firms (PSFs) use networks to gain entry into newly emerging markets (NEMs), to analyze how such firms are assisted in this process by prior networks and to provide a framework of this process.Design/methodology/approach – The methodology utilised in this study is qualitative and exploratory. Ten interviews across three large firms (legal, finance and media consulting) were used for the data gathering. Analysis incorporated open, axial and selective coding.Findings – Prior networks provide impetus to the foreign entry aspirations of PSFs and are critical to the process. The specific functions of network actors in the entry process are to influence the firm and to provide intelligence‐gathering, arising from their participatory role in the foreign market. A framework is presented, supporting network theory as a key theoretical underpinning of strategy formulation, decision‐making and implementation by PSFs entering NEMs.Research limitations/implicatio...

Psychic distance and environment: impact on increased resource commitment

Purpose – The purpose of this study is to provide a theoretical driven model, explaining the interaction between psychic distance and environment on increased (subsequent) resource commitment decisions made by firms in their internationalization process. Increasingly, contrary to the Uppsala internationalization process (IP) model, firms are engaging in direct investment, rather than exporting as an initial step into overseas markets. Yet, it remains unclear how psychic distance affects firms engaged in increased resource commitment, especially in the initial phase of their international expansion when uncertainty is higher.Design/methodology/approach – Building theory by integrating two key theories of internationalisation (IP model and eclectic paradigm), the paper explains increased resource commitment. Comparing firm types, the study also fills the research gap of recognising multinational enterprises (MNEs) as heterogeneous in their internationalization experience. Psychic distance and environment ar...

Developing service climate in local vs. foreign firms in smaller Asian emerging markets: a resource-based and social exchange perspective

Abstract While research on drivers of service climate has focused on organisational resources and human resource practices such as training, employee autonomy and inter-departmental support, how these resources interrelate and influence service climate has not been examined, especially in the context of smaller Asian emerging market. Drawing on the resource-based view and its extension on dynamic capability, and social exchange theory, this qualitative study investigates how local and foreign firms in smaller Asian emerging markets create a favourable service climate. Our findings suggest three inter-related groups of factors that influence service climate, namely firm-based, market-based and culture-based drivers. Notably, foreign service firms perform better than their local counterparts in several firm-based drivers (e.g. service-oriented human resource management practices, work facilitation resources). Our study proposes a conceptual framework that integrates inter-relationships of organisational resource-based factors and explains how internal and external factors drive service climate in firms in smaller Asian emerging markets.

Foreign Market-Entry into Central and Eastern Europe: Australian Firms in Poland and the Czech Republic

Abstract This study examines key edlements associated with Western firms entering Central and Eastern Europe (CEE): a region classified as transitional. We highlight the role of networking in the foreign market-entry (FME) process in terms of entry strategies. Following a qualitative analysis of six Western (Australian) firms entering two main (Poland and Czech Republic) transitional markets, three key themes were identified: networking strongly underpins initial market-entry; is fundamental in refining target-market decisions; and is integral to strategy-building for market participation in the post-entry phase. Based on our findings we describe a distinct market-situation for emerging markets. We then propose a typology, identifying a fifth “type” of market-situation in emerging markets, the “Transitional International,” an extension of Johnson and Mattssons (1988) typology. Our ‘Transitional International’ firm is characterised by significant pre-entry and development of post-entry business networks within a transitional market environment.

Conceptualizing Network Configurations as Dynamic Capabilities for Emerging Market Born Globals

Abstract The literature on international entrepreneurship (IE) provides insufficient understanding on network-based capabilities that born globals (BGs) undertake to maintain post-entry competitive advantages. Most organizational studies to date seem to address only network positioning, therefore providing inadequate understanding on network dynamics. More importantly, configuration of network dynamics from the perspective of the focal firm has been underexplored. This study seeks to fill this gap by asking the following question: How do emerging market (EM) BGs undertake network configuration during internationalization? We suggest network configuration as a primary construct to provide better understanding of network management based on the dynamic capabilities view (DCV). Particularly, in the face of increasing emerging market turbulence, network configuration provides an understanding of a BG’s growth despite a high degree of environmental dynamism. Propositions are developed and future research directions are offered.