The Management of Value Chain Activities in Born Global Companies
2011 (English)Other (Other academic)
The purpose of this study is to investigate how Born Global companies’ value chain activities are managed and organised.
This study explores how Born Global firms’ activities are managed and organised through qualitative research using secondary data and interviews with the entrepreneurs and CEOs offour Swedish Born Global firms.
This study indicates that CEOs are active in making strategic decisions in all parts of a Born Global firm’s value chain activities. Decisions on localisation and outsourcing are influenced by the entrepreneur’s definition of his firm’s core competencies. However, factors outside the firmare also an influence: potential suppliers, outsourcing of manufacturing and potential partners indistribution, especially relating to the rise of new emerging markets (e.g. China). The importanceof coordinating value chain activities also influences the localisation of different activities. The use of value-creating networks is important for Born Global companies. These networks,especially local ones, can also be seen in connection with the ‘global factory’ concept but adjusted to the Born Global Company and its international environment.
This study provides a deeper understanding of how entrepreneurs in Born Global firms are involved in decisions regarding all parts of the value chain. A limitation is that it has focused onthe value activities within these firms. Future studies should also investigate how the relationship with other actors in the value chain (e.g. suppliers and distributors) influences the development of Born Global firms.
It is important to focus on strategic decisions in all parts of the value chain in global settings. The management team needs to create an organisation that can deal with operative matters and work without the direct supervision of top-level management.
This paper takes a holistic view of all parts of Born Global firms’ value chain activities and the role of the entrepreneur and management in the value chain, which few previous studies have investigated.
Place, publisher, year, edition, pages
Halmstad: Halmstad University , 2011.
Internationalisation, Value Chain Global, Born Global, Entrepreneurial, Outsourcing
IdentifiersURN: urn:nbn:se:hh:diva-19345OAI: oai:DiVA.org:hh-19345DiVA: diva2:547097
Unpublished article.2012-08-272012-08-272012-08-27Bibliographically approved