International Business: Born Global and Incubators Case Study

This case study delves into the concept of born global firms, which initiate international activities early in their lifecycle, often leveraging technology and entrepreneurial mindsets. It highlights the importance of these firms for economic growth, job creation, and innovation. The study then examines business incubators as crucial support systems, providing infrastructure, business support services like coaching and training, and networking opportunities. These incubators help startups overcome resource constraints and accelerate their internationalization. The case study emphasizes the benefits of incubator environments, including a nurturing entrepreneurial atmosphere, institutional mediation, and an innovative culture, which collectively enhance the competitiveness and survival rates of incubated firms. The analysis underscores the critical role of incubators in facilitating the rapid internationalization of born global firms by providing essential resources, expertise, and networking capabilities, ultimately contributing to their success in the global market.

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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incubator get access to advanced technologies then it stimulates the innovation as well as
encourage the development of knowledge-based products that provide with the positive influence
over speed as well as scale of internationalization.
Business support: The business incubators also provide knowledge-based services to
new start-ups which is known as business support services that are usually associated with the
coaching and training. In this coaching means providing expert advice to mentoring their actions
and providing professional advices over the range of issues faced by start ups in term of business
development. On the other side training mainly includes the education seminars as well as
workforce devoted to a particular area of study. These activities are mainly organised by the
business incubators as well as entrepreneurs themselves on regular basis to develop better
understating of operations business. Other than this the financial help is also accelerated in the
form of business support (Naqshbandi, Kaur and Ma, 2015). It consists of several kind of area of
expertise such as incubators advices the newly establish businesses with the range of business
development matters which mainly includes product development, business planning, marketing,
sales, PR and distribution policies as well as provision of market specific information that
includes buying preferences. Additionally, they also assist in several kind of general business
matters which includes financial management, business, accounting, legal issues such as
protection to intellectual right, risk management and human resource management. Sometimes
the incubators also offer the range of scientific as well as technological support. The star ups
mainly are less experienced and lack of business experience where they likely to develop the
necessary skills within the process of learning by doing. The business support services offered by
the business incubator plays a significant role in acceleration of the incubates learning process as
well as it found to be having positive influence over the performance as well as timely
graduation. The coaching and training over business matters related with the internationalisation
positively influence the entrepreneurs related and organisational factors that remain favourable to
the emergence of born global. The main focus of such activities aims toward the development of
firm’s capability within the technology as well as innovation which stimulates the formation of
innovative organisational behaviour and culture.
Networking: The business incubator plays a significant role as a mediator among the
incubated organisations as well as environment. In context to this the business incubator doesn’t
seems to be separate from various kind of internal as well as external networks that actually get
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established. Internal network mainly includes the incubator managers as well as other staff,
incubator advisory board, their employees as well as incubated firms. On the other side the
external network is consider to be very much broader as well as consist of public institutions,
business association, venue capitalists, business angels, firms outside the business incubator,
universities and research institutions and professional services providers such as lawyer ,
accountant, business development and marketing, intellectual property expert, insurance and tax
consultant (Struwig and Meru, 2011). Along with this, the participation within the international
fairs, symposium and conferences also contributed toward the expansion of incubates’ network
which provide a direct financial help to the business incubators for such purpose which can also
be consider as a part of networking services.
The small businesses or start ups mainly uses the incubator’s network as a tool for
overcoming the scarcity of the critical resources which mainly includes the human capital,
finance, technology and knowledge which in turn further help in accelerating the growth. The
informal person to person contact is consider to be an important source of information for the
start ups. This is so because with the help of external networks the incubates get access to the
resources as well as competencies which can not be offered to the business incubator itself. This
is so because the national as well as international venture capitalist as well as business angels
that are within the incubator’s network help the newly established business with financial
resources and in return they provide appropriate support and guidance to perform firm activities
with an aim to safeguard their investment which provide a small firm with the professional
business support. In case when the incubates required certain kind of advices over highly specific
topics then they get it down directly through the incubator links with the professional
consultants, lawyers and research centres who are holding year of experience and provide with
right direction toward accelerating eth growth of business (Kuryan, Khan and Gustafsson, 2018).
These kind of cooperation’s are mainly required and remain advantageous wen the technological
expertise is required which is often remain the case for the born global. Thus it can be said that
the networking brings up a positive influence over the born global within internal as well as
external environment and can be consider as one of the powerful tool in order to overcome the
constraints for the rapid internationalisation which is related with the liabilities of smallness,
newness as well as foreignness.
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From this it can be presented that the start ups experiences some of the essential
advantages from the incubators. In this first of all they get benefited with the nurturing
entrepreneurial environment to which they get access (Sepulveda and Gabrielsson, 2013). The
environmental conditions are consider to be very much crucial at the initial stage of the
development of firm. Mainly the business incubator can not change the external environment in
which business operates but they can create a protected as well as controlled environment which
in turn support in protecting the company from changes as well as negative influence from the
external environmental pressure. Despite of this the incubators also act as a intermediary among
the public institutions as well as incubates which is known as institutional mediation. This
implies that the incubators also assist within the tenants in understanding as well as interpreting
the institutional regulations, norms, laws and values that can influence them.
Despite of this the incubator’s environment is also consider to be innovative by nature
that brings up positive influence over the internal environment of organisation. The innovative
organisational culture stimulates the rapid internationalisation as well as also help in increasing
the survival rate (Sepulveda and Gabrielsson, 2013). Additionally if the incubator environment
also act favourable in term of ex[port as well as internationalisation then it also finds the
reflection over the incubates’ organisational culture. In this the conditions for the entrepreneurial
development as well as growth of the business incubator remains more favourable as compared
to those who stay outside the incubator. This in turn help them in getting a significant
competitive edge at the national and international level.
The acceptance within the business incubator means that the start up is get passed the
initial screening which in turn has a potential for the sustainability. This in turn further increases
the credibility of the firm in front of the potential international client, investors as well as
partners, hence the positive institutional image of a business support them in becoming a born
global companies which in further contribute toward overcoming the liabilities foreignness and
newness. Therefore it can be said that incubator act as a crucial link between the start up s as
well as their pathway to approach global market. This is so because the incubators provide them
with the set of services which mainly includes access to physical as well as financial resources,
access to professional learning support with eth help of coaching, mentoring and training,
additionally it also help them with building up a network with several professionals which in turn
help them in getting investors to attract over their busines idea. This is so because the network of
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experts, mentors as well as other business incubators support organisations in getting their
contact established with the venture capitalist, business angels as well as other possible sources
of getting fund (Struwig and Meru, 2011). These all help a start up business in its initiative to
become a born global company by providing them support with the professional advices and
mentoring in business practices. This in turn further support them with getting an access to
global market with a back end support from the experts and professional which get possible due
to business incubators who provide them with a network. This help them in getting proper
guidance over the actions to be taken and strategies that are required to be followed in order to
deal with the challenges available at international market.
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REFERENCES
Books & Journals
Kuryan, N., Khan, M. S., & Gustafsson, V. (2018). Born globals and business incubators: a case
analysis. International Journal of Organizational Analysis.
Moraru, C., & Rusei, A. (2012). Business incubators–favorable environment for small and
medium enterprises development. Theoretical and Applied Economics, 5(5), 169.
Naqshbandi, M. M., Kaur, S., & Ma, P. (2015). What organizational culture types enable and
retard open innovation?. Quality & Quantity, 49(5), 2123-2144.
Sepulveda, F., & Gabrielsson, M. (2013). Network development and firm growth: A resource-
based study of B2B Born Globals. Industrial Marketing Management, 42(5), 792-804.
Struwig, M., & Meru, A. (2011). The relationship between business environment and business
incubation. China-USA Business Review, 10(9).
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