A Born Global Company’s Way to Growth
2011 (English)Other (Other academic)
In this paper, a Born Global company is studied, with the aim of investigating how it has developed from 1990 to 2007. Which growth stages can we identify over time? Which factors influence these stages? The method used is the case study and the information was gathered through interviews and secondary data. For the theoretical approach, I have used the indicative ‘stages’ of the growth/life-cycle modelsby Churchill and Lewis (1987) and Smallbone and Wyer (2006), a framework focusing oninternational growth, international market strategy, international entrepreneurship and cultureand international organisation. The Rubber Company was studied from 1990 to 2007, which suggests that three CEOs have been in charge of the company; the founder, external CEO I and CEO II. The company’s development and expansion over the study period were followed and related to the stages of growth/life-cycle model and theoretical framework. The stages analysed are the Entrepreneurial stage (1990–1999), the Expansion stage (2000–2004) and the Industrial stage (2005– ). The three CEOs took part in different stages, which affect firm development. The Rubber Company is still growing and very entrepreneurial, over time lifting its development curve to newlevels. Market strategy has changed from distributors to subsidiaries. Unknown global segmentshave been developed. Critical incidents over time have been the founder’s way of acting during the second stage in relation to CEO I, who came from a much larger company with a strong support staff. In combination with the fact that the founder was still the owner and had the power, this did not make it easy to change the company to a new stage of development. He also did not have the experience of working in a smaller company. CEO II already had a close relationwith the founder and thus he was more quickly accepted. During the Industrial stage, the new investor supported the firm’s strong development.The ongoing Entrepreneurial stage on the business development curve indicates even faster growth for the Rubber Company. For that situation, entrepreneurship strategies must be more open, decentralised and teamwork-oriented. Another management style is later required to leadand expand the company. Since 2005, the company has been in the Industrial stage; i.e.expanding even faster in the global market. A value-added pricing concept has been developed. The company’s external focus on customers and relations is very important. CEO II suggests that traditional multinationals have too much of an internal focus. The learning process in the Rubber Company has been present from inception, but the firm hashow become more professionalised through international workshops. For the culture and vision,it is important to agree on the internal values of the company all over the world – the “CompanyWay” of doing business. Entrepreneurship strategies have changed from an entrepreneur deciding in most cases to a more coaching style of leadership. New owners have now invested inthe company and capital for expansion is available.The most interesting question is how the Rubber Company grows over time and how management continuously manages to shift the life-cycle curve to new levels. A Born Global company grows and develops in its special way according to the prevailing theory. However,when it is growing, it is more and more like a traditional company but still with an extreme entrepreneurial focus, in some cases because of the founder.
Place, publisher, year, edition, pages
Halmstad: Halmstad University , 2011.
Internationalisation, Born Global, Entrepreneurial and Expansion, and Industrial Stages, Market Strategy, Growth, Value-Added pricing
IdentifiersURN: urn:nbn:se:hh:diva-19346OAI: oai:DiVA.org:hh-19346DiVA: diva2:547101
Unpublished article.2012-08-272012-08-272012-08-27Bibliographically approved