Determinants of Rapid Internationalisation in the Technological Industry: Lessons from South African born global firms.

Abstract

Over the past two decades the world has witnessed the emergence of a new type of internationalising firm, formally known as a Born Global. Such a phenomenon has infiltrated the study of internationalisation, where a Born Global commonly refers to a firm that internationalises since inception, or within 2-3 years after and reaches a significant degree of internationalisation in a short period of time. Not only have these firms challenged the traditional method of internationalisation but also stretched previous local technological firms to the international level through the rapid internationalisation of operations from inception. Various perspectives have been researched to enrich this new area of business, however little research has been conducted in the context of type of industries from where these firms emerge. The purpose of this study is to gain a deeper understanding of the phenomenon from the technological industry perspective by investigating the various determinants that influence these Born Global firms from developed markets to thrive in their international markets. To achieve the purpose of this study a multiple case-study of two firms both within the technological industry was conducted. The two Born Global firms selected as part of the sample were Sproxil and Uber. This study adopted a qualitative approach for the literature review, data collection and analysis throughout the course of the study. The multiple case-study approach collected secondary data, which enabled the development of an in-depth understanding of multiple cases of Born Global firms. This study utilised several theoretical concepts to build an underlying framework to guide the study. The findings of this study identified six main determinants influencing Born Global firms to rapidly internationalise from the technological industry within the developed market context. These determinants are as follows; superior human capital, technology, innovation and product differentiation, market characteristics and orientation, networks and lastly timing: speed of internationalisation. This study aims to contribute to the existing body of knowledge by providing lessons learnt for the developing market context, like South African Born Global firms operating within the technological industry.