Erik S. Rasmussan, Tage Koed Madsen and Felicitas Evangelista
Attempts to consider how a founder has reduced equivocality in relation to support networks and reducing risks, especially in an international environment. Presents the case…
Abstract
Attempts to consider how a founder has reduced equivocality in relation to support networks and reducing risks, especially in an international environment. Presents the case studies of five Danish and Australian born global companies. Considers different global models and their limitations. Presents the findings of recent surveys in this area. Concludes that internationalization has not been the primary objective in the founding process and gives direction for further research.
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Tage Koed Madsen, Erik Rasmussen and Per Servais
This paper examines the characteristics of the so called Born Globals and compares them with other types of exporting companies. Born Globals are defined as firms that were…
Abstract
This paper examines the characteristics of the so called Born Globals and compares them with other types of exporting companies. Born Globals are defined as firms that were established after 1976 and have reached a share of foreign sales of at least 25% after having started export activities within three years after their birth. A total of 272 Danish exporting, manufacturing companies are analyzed out of which 47 can be categorized as Born Globals according to these criteria. The contribution of the paper is empirical and descriptive; the literature has not yet shown a large scale study with similar comparisons. As shown below, Born Globals have a distinctive profile: they have a high share of foreign sales (almost 70%) and resemble the most internationally oriented exporters with respect to internal capabilities and competitive platform (specialized production) as well as their geographical scope. However, because of their small size and limited resources they often operate at arm's length in foreign markets, sometimes even more so than very inexperienced exporters.
Erik Rasmussen, Jan Møller Jensen and Per Servais
The primary focus of this paper is to examine the international (import and export) activities of the firm and the impact on the firms' criteria for choice of location and the…
Abstract
Purpose
The primary focus of this paper is to examine the international (import and export) activities of the firm and the impact on the firms' criteria for choice of location and the propensity for relocation.
Design/methodology/approach
A web survey was carried out among small and medium‐sized Danish firms. Data used in the present study are based on responses from 622 firms. The analysis is conducted in two sub‐sections. The first section focuses on how export/import intensity is related to the location motives of the firm and the propensity to relocate the firm to another national location or abroad. Pearson's correlation with corresponding test of significance is used to explore the possible relationships between the international engagement and the firm's criteria for choice of location. In the second section the responding firms are classified into one of four categories, as suggested in a local/global typology. Analysis of variance (ANOVA) is conducted in order to assess whether there exist any significant differences between the four types of firms with regard to the location motives and relocation propensity for the firms.
Findings
The study shows that the international engagement of the firm influences the need for better location with regard to infrastructure (especially airport and highways) and to a lesser degree other types of infrastructure (railways and harbours). Interestingly, firms put less emphasis on the direct economic factors (infrastructure) compared with access to customers/suppliers, local network and, above all, access to research institutions. The study shows that international firms put significantly more emphasis on the relationship with research institutions than more local firms. The study also indicates that a higher international engagement increases the firm's intention to relocate abroad, which could be one of the unwanted sides of firms' internationalisation.
Originality/value
Guided by insights from location and relocation theory and international entrepreneurship theory, the connection between firms' export and import engagement and the reasons for location and propensity for relocation are explored. The paper also suggests an internationalisation typology of firms that can be used in future research on the internationalisation of the firm.
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Per Servais, Tage Koed Madsen and Erik S. Rasmussen
E-business is an important business tool, and the increasing presence on the internet reflects this fact. For small- and medium-sized firms (SMEs) interested in…
Abstract
E-business is an important business tool, and the increasing presence on the internet reflects this fact. For small- and medium-sized firms (SMEs) interested in internationalizing, their internet offers some advantages, because, with e-business, borders between countries are becoming less relevant, and more direct interaction between business entities is made possible. In this article, we unravel the use of internet usage of different types of firms. First, we present a categorization of different local and international firms, and, second, we focus on the internet usage by born global firms compared to the other types of firms. We conclude that born global firms use the internet to convey their market presence, but only to a limited extent do they sell their products via the internet. Instead, they use the internet to support the already existing relationships by describing their products on web pages, offering services related to their products via the internet, facilitating product development via the internet, and building and maintaining relations to foreign customers. We also stress the importance of further research on how born global firms adapt to the internet in practice.
Helle Andersen and Erik S. Rasmussen
The international firms' management of subsidiaries abroad necessarily implies the question of how to manage language problems. Even if this is obvious, only a few researchers…
Abstract
The international firms' management of subsidiaries abroad necessarily implies the question of how to manage language problems. Even if this is obvious, only a few researchers have dealt with the problem of language skills in corporate communications as this paper will show. This paper will furthermore discuss how Danish firms with subsidiaries in France solve their language problems. The paper points out different kinds of solutions to the language problems and shows the consequences of these solutions. Typically the firms have no language strategy, which results in a muddling‐through the day‐to‐day problems of how to communicate.