31/08/2012
Scandinavian Insights on
International
entrepreneurship Svante Andersson
Halmstad
University
Galway
August 2012
For the Development of Organisations, Products and Quality of Life.
Traditional View on Firms’
International development
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Internationalization as a process of increasing experiantal
knowledge (E. g Uppsala Internationalization model)
Start with ”psychic close” countries
• Nordic countries
• UK, Geramany
• US
• France, South Europe
Start with resource lean establishment modes
• Direct export
• Intermidiaries (agents, distributors)
• Sales subsidiaries
• Production subsidiaries
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Largest firms in Sweden
(turnover)
1. Volvo
2. Vattenfall
3. Ericsson
4. Skanska
5. Svenska
cellulosa
6. H&M
7. Telia Sonera
8. Electrolux
9. Volvo
personvagnar
10. Ica
11. Nordea
bank
12. Sandvik
13. Scania
14. Preem
15. Atlas copco
For the Development of Organisations, Products and Quality of Life.
Entrepreneurs’ interpretation of
environment influence
internationalization decisions
Internationalisation doesn't suit our company. We should
concentrate on our home market where we know our
customers and their requirements. The increased competition
and internationalisation in the environment we should meet by
concentrating all our resources on defending our position in the
home market.
The increased internationalisation presents opportunities for
us. Certainly the competition at home is increasing but at the
same time our opportunities to compete abroad will increase.
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Internationalization from an
entrepreneurial perspective
Structure
Process
Macro
Meso
Strategy
Firm
Entrepreneurs
Internationalization
For the Development of Organisations, Products and Quality of Life.
The marketing entrepreneur
Structure
Process
Macro
New growing industry
Firm
Marketing entrepreneur
Marketing
knowledge
Active marketing
strategy
Push
Internationalization
For the Development of Organisations, Products and Quality of Life.
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The technical entrepreneur
Structure
Process
Macro
New growing industry
Firm
Technical entrepreneur
Technical
knowledge
Product and production
developPull
ment
Internationalization
For the Development of Organisations, Products and Quality of Life.
Definition - Born Global
A Born Global is a company, which have reached a share of
foreign sales of at least 25 % within three years after their
birth and from inception, seeks to derive significant
competitive advantage from the use of resources and the sales
of outputs in multiple countries.
Combination of Oviatt & McDougall (1994) and Knight (1997)
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Born Globals – the Swedish case
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Database just gave one useful company
Still uncommon in Sweden
Important to adapt definition to different markets (Sweden, US,
Denmark)
Extreme cases
For the Development of Organisations, Products and Quality of Life.
Factors explaining the occurence
of born globals
Entrepreneurs
Networks
Born
Global
Industry
Globalization
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Roxtec
For the Development of Organisations, Products and Quality of Life.
Roxtec’s growth
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Founded in 1990 and and entered 10 new markets/year and 1998 was
represented on 70 markets. 2011 subsidiaries in Brazil, China,
Finland, Germany, India, Italy, Japan, South Korea, Spain, Sweden,
United Arab Emirates, United Kingdom, and the US.
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Who is the entrepreneur in the
Born Global Firm?
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Global Mindset – International growth is a natural strategy
International experience (professional experience, studies)
• I was not motivated in school. My best subject was drawing. What I like
with business is to create something new, see opportunities and act. (The
founder and first CEO of Roxtec)
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However, also individuals with no international experience
and low language skills can succeed – motivation/urge –
revenge – hard work
Networks, both local and global - You need to be able to
focus on your personal core competencies and work together
with others
The entrepreneur is not enough to create continued growth –
strategic management/leadership skills
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For the Development of Organisations, Products and Quality of Life.
Born Global firms created
by different type of
entrepreneurs in different
industrial contexts
Type of
Entrepreneur/ind
ustry
New High-tech
industry
Mature industry
Marketing
Entrepreneur
Born Global
Born Global
Technical
Entrepreneur
Born Global
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Differences in managerial behavior
between small international and
non-international firms
Domestic firms
International firms
Average (Range)
Average (Range)
Deskwork sessions
Number per day
Proportion of time
15 (12 - 20)
47% (42 – 53%)
12 (6-15)
20 (13-29%)
Telephone calls
Number per day
Proportion of time
17 (13 - 19)
15% (11 – 22%)
12 (8-18)
13% (10-15%)
Scheduled meetings
Number per day
Proportion of time
1 (0 - 2)
12% (9 – 16%)
3 (3-4)
52% (40-61%)
Unscheduled meetings
Number per day
Proportion of time
20 (11 - 25)
17% (9 – 24%)
10 (6-13)
10% (9-13%)
Tours
Number per day
Proportion of time
5 (3 - 8)
8% (5 – 14%)
1 (0-2)
1% (0-1%)
For the Development of Organisations, Products and Quality of Life.
Operation
Decisional roles
al roles
Information Interperson
al roles
al roles
Roles shoulder by manager
Figurehead
Domestic firms
Average (Range)
0 (0-0)%
International firms
Average (Range)
0 (0-0)%
Leader
6 (1-10)%
Liaison officer
4 (1-11)%
5 (0-15)%
Monitor
9 (6-12)%
17 (9-24)%
10%
14%
26%
30%
21 (16-26)%
Disseminator
2 (1-3)%
Spokesman
3 (2-4)%
11 (3-22)%
Entrepreneur
9 (3-13)%
26 (19-31)%
Disturbance
handler
Resource
allocator
Negotiator
3 (1-4)%
5 (0-13)%
24%
37%
10 (3-16)%
3 (1-6)%
2 (0-4)%
3 (0-6)%
Specialist 46 (30-63)%
5 (2-7)%
48%
Substitute
operator
2 (0-4)%
Other
4 (1-6)%
3 (1-4)%
5%
0 (0-0)%
4%
2%
2 (1-5)%
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Managers in Born Globals
compared with managers in
domestic oriented firms
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Less operative
Delegate more
More planning
More proactive
For the Development of Organisations, Products and Quality of Life.
Management/leadership
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The entrepreneur/manager is involved in strategic decisions
regarding all value chain activities (strategic suppliers,
production, distrubution, selling) – use global resources
A clear business model (However sometimes you need to
adapt to opportunities/threats) (Camp Scandinavia,
Redsense)
Need to create a motivated ”self-going” organization (vision,
delegation, empowerment)
Trade off - acting as if you are a large MNC in some parts and
entrepreneurial in other parts
Use the time on planned strategic activities – international
travelling
Strategic recruitment – international background,
complementary competencies
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Stakeholders and Marketing Capabilities in
International New Ventures: Evidence from
Ireland, Sweden and Denmark (Evers, Andersson,
Hannibal, JIM, 2012)
For the Development of Organisations, Products and Quality of Life.
Implications
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Education – promote international exchange
Develop education with both technical innovation and
business creation
Export Promotion – tailor-made for specific target
groups
Importance of role models – best practices
See governmantal restrictions as opportunities not
threats – e.g legislation regarding environment
For the Development of Organisations, Products and Quality of Life.
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31/08/2012
Thank you very much
Questions and
Comments?
For the Development of Organisations, Products and Quality of Life.
References
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Andersson, S. 2000. Internationalization of the Firm from an
Entrepreneurial Perspective. International Studies of Management &
Organization, Vol. 30, No. 1, pp.65-94.
Andersson, S & Wictor, I . 2003. Innovative internationalisation in
new firms – Born Globals the Swedish case. Journal of International
Entrepreneurship. Vol 1, No 3. pp 249-276.
Andersson S. 2004. Internationalization in different industrial
contexts. Journal of Business Venturing. Vol 19. No. 6. pp. 851-875.
Andersson, S & Evangelista, F. 2006. The entrepreneur in the Born
Global Firm in Australia and Sweden. Journal of Small Business and
Enterprise Development. Vol 13. No. 4. Pp. 642-659.
Andersson, S & Florén, H. 2011. Differences in managerial behavior
between small international and non-international firms. Journal of
International Entrepreneurship.Vol 9. No 3. pp. 233-258.
Evers, N., Andersson, S. & Hannibal, M. 2012. Stakeholders and
Marketing Capabilities in International New Ventures: Evidence from
Ireland, Sweden and Denmark. Journal of International Marketing
(accepted for publication)
For the Development of Organisations, Products and Quality of Life.
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