Born internationals: Market expansion and businessoperation mode strategies in the digital media field
Springer Science + Business Media, LLC 2008
This paper examines leading Swedish and Finnish Internet consultanciesoperating in the digital media service field. These are
firms that internationalise their business at an exceptionally rapid pace. The paper focuses onwhy and to what extent the market expansion and business operation mode strategiesof these companies deviate from the traditional pattern depicted by the Scandinavian process school. The empirical data consisted of interviews with the founder andsenior management and secondary data from company and public archives. Theresearch findings show that in fact both the international new venture research andthe Scandinavian internationalisation model appear to be valid. The former modelwas evidenced by the fact that the born internationals indeed deviated from the behaviour of the traditional firms. The latter was exemplified by the fact that thefinal internationalisation profile, after the withdrawals of firms from unsuccessfulmarkets, was close to what the Scandinavian internationalisation model would call
expansion. Hence, if the investigation period is long enough to account for unsuccessful endeavours and withdrawals, we may then find empirical support for the traditional model as well. To be reliable, the investigation period should cover at least one economic slow down.
After Rennie (1993) brought the born globals phenomena to light, research is still far from any final conclusion on many aspects. The reasons for the existence andincreased number of born globals have been explained thoroughly (Oviatt and
J Int Entrepr DOI 10.1007/s10843-008-0020-zM. Gabrielsson (
T. PelkonenHelsinki School of Economics, P.O. BOX 1210, 00101 Helsinki, Finlande-mail: Mika.Gabrielsson@hse.fi