The emergence of born global firms : a least-developed country perspective
Citation:
Farhad Uddin. Ahmed, 'The emergence of born global firms : a least-developed country perspective', [thesis], Trinity College (Dublin, Ireland). Trinity Business School, 2016Download Item:
Abstract:
This empirical study addresses the impact of the principal founder’s human capital (HC) factors and their level of entrepreneurial orientation (EO) along with the national export promotion policies (EPPS), on born global firms (BGF) originating from a relatively low-tech and buyer-driven industry in a least-developed country (LDC). Given the widespread prevalence and economic significance of BGF, to date a large number of studies have been directed towards examining the antecedents, business strategies and performance of BGF with a focus on high-tech or knowledge-intensive small and medium-sized enterprises in developed and advanced-emerging countries. Notwithstanding that, a review of the literature suggests that findings concerning BGF are not yet comprehensive since there is limited consideration of how such firms emerge and develop from countries that are at different levels of economic maturity. In particular, evidence suggests that our knowledge on BGF theory is not yet comprehensive since the existing theory is confined to findings from developed and advanced-emerging countries. This implies that the literature around BGF originating from LDCs is almost non-existent. This shortfall is significant because evidence suggests that many low-tech and labour-intensive firms in LDCs are engaged in international business from inception or shortly thereafter, although their international growth aspirations are often hampered by several socio-economic and institutional constraints. Therefore, given the lack of studies in the context of LDCs, it can be argued that addressing this theoretical and empirical shortcoming by incorporating an LDC context can enrich the domain of international entrepreneurship (IE) in an important way. In order to address the identified knowledge gap, this study engages in quantitative analysis using data drawn from the Bangladeshi apparel industry. Drawing on the human capital theory, the resource-based view, and the institutional-based view, this study develops and tests a BGF emergence model that incorporates the principal founder’s general (education and prior international experience) and specific (prior start-up and previous industry-specific working experiences) HC factors, founders’ level of EO (innovativeness, proactiveness and risk-taking propensity), and national EPPS (finance and guarantee-related and market-development related EPPS) constructs. The model also includes a number of control variables (founder’s age, founding team composition and firm size). The findings of this study confirm that BGF originating from a low-tech and buyer-driven industry in an LDC are influenced by their principal founder’s specific HC factors, founders’ risk-taking propensity, and the exploitation of market-development related EPPS. Additionally, this study confirms that the principal founder’s age has a significant and positive impact, whereas the founding team size has a significant but negative impact on BGF. However, contrary to the extant findings for developed and advanced-emerging economies, the founder’s general HC factors, and their level of innovativeness and proactiveness are not found to be significant determinants. Moreover, the results do not confirm the significant effect of finance and guarantee-related export promotion programmes. The findings are evaluated in the light of the extant literature and several explanations are derived as to why some findings diverge from the established literature on developed and advanced-emerging countries. The contributions of this study are manifold. Theoretically this study contributes to IE literature by developing and testing a BGF emergence model in the context of an LDC. This study also contributes to the literature by providing support that specific HC factors, particularly prior start-up and industry-specific working experiences are significant determinants of BGF. Moreover, the findings pertain to EO construct contribute to IE literature by demonstrating that risk-taking propensity is one of the key capabilities of a founder that is required for adopting a BGF strategy. This study also makes a notable contribution to the literature by providing support that pursuing a BGF internationalisation trajectory is influenced by the regulatory mechanisms (export promotion incentives) of institutions. The choice of population from an under-represented context and drawing sample firms from a relatively low-tech and buyer-driven industry should be considered as a key methodological contribution. This study also makes a methodological contribution through the development and testing of a BGF emergence model that is applicable to all firms irrespective of their age and size. The findings of this study also have policy implications for understanding the significance of HC factors, EO dimensions and national EPPS in promoting exports at a faster pace, generating foreign revenue, and reducing the unemployment rate. For entrepreneurs and managers, the findings confirm the importance of prior entrepreneurial and industry-specific working experiences, and risk-taking propensity, and the usage of market development-related EPPS in the establishment of BGF.
This empirical study addresses the impact of the principal founder’s human capital (HC) factors and their level of entrepreneurial orientation (EO) along with the national export promotion policies (EPPS), on born global firms (BGF) originating from a relatively low-tech and buyer-driven industry in a least-developed country (LDC). Given the widespread prevalence and economic significance of BGF, to date a large number of studies have been directed towards examining the antecedents, business strategies and performance of BGF with a focus on high-tech or knowledge-intensive small and medium-sized enterprises in developed and advanced-emerging countries. Notwithstanding that, a review of the literature suggests that findings concerning BGF are not yet comprehensive since there is limited consideration of how such firms emerge and develop from countries that are at different levels of economic maturity. In particular, evidence suggests that our knowledge on BGF theory is not yet comprehensive since the existing theory is confined to findings from developed and advanced-emerging countries. This implies that the literature around BGF originating from LDCs is almost non-existent. This shortfall is significant because evidence suggests that many low-tech and labour-intensive firms in LDCs are engaged in international business from inception or shortly thereafter, although their international growth aspirations are often hampered by several socio-economic and institutional constraints. Therefore, given the lack of studies in the context of LDCs, it can be argued that addressing this theoretical and empirical shortcoming by incorporating an LDC context can enrich the domain of international entrepreneurship (IE) in an important way. In order to address the identified knowledge gap, this study engages in quantitative analysis using data drawn from the Bangladeshi apparel industry. Drawing on the human capital theory, the resource-based view, and the institutional-based view, this study develops and tests a BGF emergence model that incorporates the principal founder’s general (education and prior international experience) and specific (prior start-up and previous industry-specific working experiences) HC factors, founders’ level of EO (innovativeness, proactiveness and risk-taking propensity), and national EPPS (finance and guarantee-related and market-development related EPPS) constructs. The model also includes a number of control variables (founder’s age, founding team composition and firm size). The findings of this study confirm that BGF originating from a low-tech and buyer-driven industry in an LDC are influenced by their principal founder’s specific HC factors, founders’ risk-taking propensity, and the exploitation of market-development related EPPS. Additionally, this study confirms that the principal founder’s age has a significant and positive impact, whereas the founding team size has a significant but negative impact on BGF. However, contrary to the extant findings for developed and advanced-emerging economies, the founder’s general HC factors, and their level of innovativeness and proactiveness are not found to be significant determinants. Moreover, the results do not confirm the significant effect of finance and guarantee-related export promotion programmes. The findings are evaluated in the light of the extant literature and several explanations are derived as to why some findings diverge from the established literature on developed and advanced-emerging countries. The contributions of this study are manifold. Theoretically this study contributes to IE literature by developing and testing a BGF emergence model in the context of an LDC. This study also contributes to the literature by providing support that specific HC factors, particularly prior start-up and industry-specific working experiences are significant determinants of BGF. Moreover, the findings pertain to EO construct contribute to IE literature by demonstrating that risk-taking propensity is one of the key capabilities of a founder that is required for adopting a BGF strategy. This study also makes a notable contribution to the literature by providing support that pursuing a BGF internationalisation trajectory is influenced by the regulatory mechanisms (export promotion incentives) of institutions. The choice of population from an under-represented context and drawing sample firms from a relatively low-tech and buyer-driven industry should be considered as a key methodological contribution. This study also makes a methodological contribution through the development and testing of a BGF emergence model that is applicable to all firms irrespective of their age and size. The findings of this study also have policy implications for understanding the significance of HC factors, EO dimensions and national EPPS in promoting exports at a faster pace, generating foreign revenue, and reducing the unemployment rate. For entrepreneurs and managers, the findings confirm the importance of prior entrepreneurial and industry-specific working experiences, and risk-taking propensity, and the usage of market development-related EPPS in the establishment of BGF.
This empirical study addresses the impact of the principal founder’s human capital (HC) factors and their level of entrepreneurial orientation (EO) along with the national export promotion policies (EPPS), on born global firms (BGF) originating from a relatively low-tech and buyer-driven industry in a least-developed country (LDC). Given the widespread prevalence and economic significance of BGF, to date a large number of studies have been directed towards examining the antecedents, business strategies and performance of BGF with a focus on high-tech or knowledge-intensive small and medium-sized enterprises in developed and advanced-emerging countries. Notwithstanding that, a review of the literature suggests that findings concerning BGF are not yet comprehensive since there is limited consideration of how such firms emerge and develop from countries that are at different levels of economic maturity. In particular, evidence suggests that our knowledge on BGF theory is not yet comprehensive since the existing theory is confined to findings from developed and advanced-emerging countries. This implies that the literature around BGF originating from LDCs is almost non-existent. This shortfall is significant because evidence suggests that many low-tech and labour-intensive firms in LDCs are engaged in international business from inception or shortly thereafter, although their international growth aspirations are often hampered by several socio-economic and institutional constraints. Therefore, given the lack of studies in the context of LDCs, it can be argued that addressing this theoretical and empirical shortcoming by incorporating an LDC context can enrich the domain of international entrepreneurship (IE) in an important way. In order to address the identified knowledge gap, this study engages in quantitative analysis using data drawn from the Bangladeshi apparel industry. Drawing on the human capital theory, the resource-based view, and the institutional-based view, this study develops and tests a BGF emergence model that incorporates the principal founder’s general (education and prior international experience) and specific (prior start-up and previous industry-specific working experiences) HC factors, founders’ level of EO (innovativeness, proactiveness and risk-taking propensity), and national EPPS (finance and guarantee-related and market-development related EPPS) constructs. The model also includes a number of control variables (founder’s age, founding team composition and firm size). The findings of this study confirm that BGF originating from a low-tech and buyer-driven industry in an LDC are influenced by their principal founder’s specific HC factors, founders’ risk-taking propensity, and the exploitation of market-development related EPPS. Additionally, this study confirms that the principal founder’s age has a significant and positive impact, whereas the founding team size has a significant but negative impact on BGF. However, contrary to the extant findings for developed and advanced-emerging economies, the founder’s general HC factors, and their level of innovativeness and proactiveness are not found to be significant determinants. Moreover, the results do not confirm the significant effect of finance and guarantee-related export promotion programmes. The findings are evaluated in the light of the extant literature and several explanations are derived as to why some findings diverge from the established literature on developed and advanced-emerging countries. The contributions of this study are manifold. Theoretically this study contributes to IE literature by developing and testing a BGF emergence model in the context of an LDC. This study also contributes to the literature by providing support that specific HC factors, particularly prior start-up and industry-specific working experiences are significant determinants of BGF. Moreover, the findings pertain to EO construct contribute to IE literature by demonstrating that risk-taking propensity is one of the key capabilities of a founder that is required for adopting a BGF strategy. This study also makes a notable contribution to the literature by providing support that pursuing a BGF internationalisation trajectory is influenced by the regulatory mechanisms (export promotion incentives) of institutions. The choice of population from an under-represented context and drawing sample firms from a relatively low-tech and buyer-driven industry should be considered as a key methodological contribution. This study also makes a methodological contribution through the development and testing of a BGF emergence model that is applicable to all firms irrespective of their age and size. The findings of this study also have policy implications for understanding the significance of HC factors, EO dimensions and national EPPS in promoting exports at a faster pace, generating foreign revenue, and reducing the unemployment rate. For entrepreneurs and managers, the findings confirm the importance of prior entrepreneurial and industry-specific working experiences, and risk-taking propensity, and the usage of market development-related EPPS in the establishment of BGF.
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Trinity Studentship Award
Author: Ahmed, Farhad Uddin.
Advisor:
Brennan, LouisQualification name:
Doctor of Philosophy (Ph.D.)Publisher:
Trinity College (Dublin, Ireland). Trinity Business SchoolNote:
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Business, Ph.D., Ph.D. Trinity College DublinMetadata
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