The influence of network transitions within the life cycle stages of born global companies

Abstract

This research had the objective to analyze the influence of network transitions within the life cycle stages of Born Globals (BGs). By developing a framework that consisted of a pre‐inception phase, start‐up phase, and growth phase, the study proposed to identify which networks were used and which knowledge was acquired within the development of the BGs, in order to analyze the network transitions that influenced its international expansion. By conducting in‐depth interviews, the data was collected for the analysis of a comparative case study. Our empirical findings indicate that in the pre‐inception phase, technological knowledge from institutional and business networks was pivotal to acquiring internal development making it possible for the companies to progress to the inception phase. Furthermore, international marketing knowledge acquired through business networks contributed to the transition from the inception phase to the growth phase as well as its internationalization. The results imply that high‐tech entrepreneurs should consider developing business and institutional networks as an efficient mean for firm development and rapid internationalization.