Born Global is a new phenomenon in business which numerous researchers and authors use different definition and concept to explain it. It refers to new rising small and medium sized enterprises internationalized to achieve a competitive advantage in other countries. They are mostly not famous in their country of origin. These enterprises get more revenue from selling their output using different channels. A more quantitative definition is that Born Globals includes entities that have gained at least 25% of their revenue from foreign sales within three years of company working’s starting and using resources and seeking competitive advantage in different countries.
The behavior of Born Globals is not the same as traditional activities. They emphasize on active entrepreneurs, entrepreneurship theory and using resources, it has resulted in a significant breakthrough to develop products and doing business in a new way. Emerge of Born Globals are related to recent trends in marketing and their importance to improve the business. Niche marketing, technology, information and communication improvement and global network facilities are some significant trends that derive to Born Globals. Flexibility, adaptability, responsiveness and other advantages of small companies also have an important contribution to this concept.
According to earlier research four broad categories have influence on the indication of Born Globals, they are: Globalization, Entrepreneurs, Networks and Industry. Internationalization process in traditional theory is not as rapid as in Born Globals. Although psychic distance and organization theory are important for traditional activities, globalization decreases many trade barriers and provides more opportunities for small firms to explore to internationalize their market.
Improvement in different aspect of technology, communication and transport has helped Born Globals to penetrate the foreign market and fulfill their customer’s demands. Innovative entrepreneurs, who are proactive individuals with ability to implement their own ideas, have dominance to enter into new markets. Global vision, orientation, motivation, ambition and international experience are more important characteristics of entrepreneurs associated with Born Globals. Contrary to traditional model, entrepreneurs with their specific positive attitude towards global strategy define and create new strategies and take advantage of the environment and opportunities to interact with others in Born Globals.
The network concept is different for Born Globals companies. They create their network according to their new business ideas and company’s level, which includes formal, informal and personal networks since traditional routines, process and system are not stable due to new firm’s inception. So, entrepreneurs use the network as an opportunity to develop and implement their global firm vision and strategy. However the importance of industry for their international development should not be neglected. Born Globals companies’ ability to create innovation, specialized product and niche market gives them distinction to expand in the global area. Entrepreneurs’ knowledge and experience, relying on supplementary competencies sources and collaboration and relationship with other firms, distributers and subsidiaries, give them potential to access effectively to foreign market.