Born Globals in China : The Reasons of Their Emergence

Problem - A new kind of companies was identified twenty years ago, the BornGlobals (BGs).Those companies tend to go abroad in a very early stage, sometimesright after their inception. Although the Western literature has showed much progressin studying this phenomenon and developing many theories, its Chinese counterparthas not been developed in the same degree. Meanwhile, due to the limitation ofliterature translation and different process of knowledge accumulation, the emergenceof the Chinese BGs raises many questions about its reasons, drive factors andformation mechanism. Purpose - The purpose of this paper is to explore the new phenomenon of BGs inChinese firms, increase a better understanding of relevant theories, and investigate thekey factors of Chinese BGs' emergence. Design - The paper draws on previous studies on Western perspective of BGs. Inorder to be less influenced by Western theories, an inductive approach is used formultiple case study of two Chinese companies. Semi structured interviews wereconducted with the representative from each company through telephone and CMCinterviews. Findings - The main reason of Chinese BGs internationalize very early is to becomedeveloped and strong, so that they can re-enter their domestic market. Their truevision is to go abroad and begin to operate in a less hostile environment than the onein China. Education, prior knowledge, technology and networks were found to be ofsimilar great importance as in the western literature. On the other hand, their growth isalso facilitated by the low costs that exist in China. In the global market, they haveaccess to materials and human resources to allow them to have a competitiveadvantage. At the end, the model representing our findings is developed. Practical implications - This study provides the information on how the founders ofBGs think and act, and which traits characterize them and give a better view on whythese firms became BGs and how they will continue their expansion. As well as, helpmanagers to understand how Chinese BGs will proceed and let them be able to actproactively. Originality/value - The findings of study may develop the BG literature, especially inthe area of China, and confirm or challenge other existing theories. The paperconfirmed the western literature in many points, but also provided new informationabout the vision of these companies in China