Differences and similarities between born globals and other types of exporters

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.

Citation

Koed Madsen, T., Rasmussen, E. and Servais, P. (2000), "Differences and similarities between born globals and other types of exporters", Yaprak, A. and Tutek, H. (Ed.) Globalization, the Multinational Firm, and Emerging Economies (Advances in International Marketing, Vol. 10), Emerald Group Publishing Limited, Leeds, pp. 247-265. https://doi.org/10.1016/S1474-7979(00)10013-4