Role of Business Incubators in the Internationalization of Born Global Firms

International Business
Management
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CASE STUDY
From years the internationalisation is consider to be a evolutionary process which is
attracting huge number of business, researchers as well as governments. From the scenario of
internationalisation, the concept of Born global has been emerged. The born companies are
defined as those organisations which starts up their international activities within two year of
inception. These organisations are mainly consider as micro, small or medium sized enterprise.
But despite of this the born global firms also consists with certain kind of characteristics such as
these organisations are highly innovative and mainly uses the technology based services within
their every day business (Kuryan, Khan and Gustafsson, 2018). Those these are mainly operated
by the entrepreneurs with having a global mindset, who are having a capability to identify about
the opportunities that are available within the global market and be able to exploit them with
their innovative ideas. The organisational culture of the born global help in acquisition of the
knowledge which can be further used to create unique resources configuration.
The born global firms are determine to have a strong potential for the growth which
proves to hold the significant impact over the national growth rate. The born global firm are
consider to be a great sources of job creation as compare to other kind of small as well as
medium sized enterprise. These firms are consider to be more sophisticated in term of knowledge
and technology which is the main source of competitive advantage and these firms are also
consider to be very much essential in brining innovation within country. So, from the
investigation it has bene suggested that for promoting the economic growth of a country,
policymakers must focuses toward encouraging as well as facilitating the creating of high growth
for such kind of firms.
Despite of this the busines incubation are also a part of global market where these are
those organisations which creates favourable environment toward the development of enterprise.
The start up businesses usually found difficulties in term of arranging the resources as well as
managerial experiences that may cause failure sometimes. But on the other side the business
incubators are eh one which provide entrepreneurs with all of the essential facilities as well as
expertise which in turn help them in converting their business creative ides into practice
(Sepulveda and Gabrielsson, 2013). Thus the business incubator are consider to be those
instruments that promote the innovation, transfer of technology as well as commercialisation to
raise up the success rate within start ups. In this manner the business incubator mainly contribute
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toward the economic growth as well as employment of the country. Hence, it can be said that the
business incubator are one of the effective tool which facilitates the emergence as well as
development of the born firm by helping them in getting appropriate chance to get established
internationally. The business incubators mainly provide the born global firms an access to
physical resources that it require to perform operations and at the same time help in creating a
favourable environment for entrepreneurs in order to accelerate the growth as well as
development of start-up and fledging companies.
Mainly the business incubators provide range of services which aims toward success of
entrepreneurs by supporting them in transforming their idea into business. The management team
of a incubator develop as well as coordinate the range of services which are provided in
accordance with the specific goal as well as priority of incubator. These kind of services are
offered with the help of incubator as well as network (Struwig and Meru, 2011). All the business
incubator services are mainly divided within three big groups such as business support,
infrastructure as well as networking.
Infrastructure: While establishing or starting up a business the provision of physical
infrastructure is always remains to one of the basic function within all type of business incubator
and this is consider to be an integral part of their value proposition. For this incubated company
can offered with a shared office space at favourable rental condition. This in turn help the small
businesses to survive within the market place by getting themselves safe from higher rental
charges combined with limited access to financial resources. Other kind of shared physical
resources consist of administrative facilities which mainly includes reception, meeting room,
conferences, fax, car parking, internet lines, phone etc. Other than this sometimes the busines
incubators also provide an access to research equipment’s as well as laboratories. Despite of all
this the direct financial support to the internal sources of business incubator is also consider as a
part of infrastructure proposition (Moraru and Rusei, 2012). Hence it can be said that by
providing infrastructure to tenants the business incubator support them within rapid
internationalisation within several ways. As it bring up a positive influences of internal business
environment of start up by providing them with tangible resources which also support them in
achieving economies of scale sue to resources sharing which in turn reduce the overhead costs.
Thus, incubators help in overcoming the major constraints toward rapid internationalisation i.e.
lack of resources connected with liability of smallness and newness. Then if the business
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