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For the Development of Organisations, Products and Quality of Life.

Scandinavian Insights on International entrepreneurship -

Svante AnderssonHalmstad UniversityGalway August 2012

For the Development of Organisations, Products and Quality of Life.

Traditional View on Firms’ International development

• 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

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For the Development of Organisations, Products and Quality of Life.

Largest firms in Sweden (turnover)

1. Volvo2. Vattenfall3. Ericsson4. Skanska5. Svenska cellulosa6. H&M7. Telia Sonera8. Electrolux9. Volvo personvagnar

10. Ica11. Nordea bank12. Sandvik13. Scania14. Preem15. 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.

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For the Development of Organisations, Products and Quality of Life.

Internationalization from an entrepreneurial perspective

Macro

Meso

Firm

Entrepreneurs

Strategy

Internatio-nalization

Structure Process

For the Development of Organisations, Products and Quality of Life.

The marketing entrepreneur

Structure Process

New growing industry

Active marketingstrategy

PushInternatio-nalization

Firm

Marketingknowledge

Marketing entrepreneur

Macro

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For the Development of Organisations, Products and Quality of Life.

The technical entrepreneur

Structure Process

New growing industry

Product and productiondevelop-ment Pull

Internatio-nalization

Firm

Technicalknowledge

Technical entrepreneur

Macro

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)

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For the Development of Organisations, Products and Quality of Life.

Born Globals – the Swedish case

• 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

BornGlobal

Entrepreneurs

Networks Industry

Globalization

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For the Development of Organisations, Products and Quality of Life.

Roxtec

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Roxtec’s growth

• Founded in 1990 and and entered 10 new markets/year and 1998 wasrepresented 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.

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For the Development of Organisations, Products and Quality of Life.

Who is the entrepreneur in the Born Global Firm?

• 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 likewith business is to create something new, see opportunities and act. (Thefounder and first CEO of Roxtec)

• However, also individuals with no international experienceand low language skills can succeed – motivation/urge –revenge – hard work

• Networks, both local and global - You need to be able tofocus on your personal core competencies and work togetherwith others

• The entrepreneur is not enough to create continued growth –strategic management/leadership skills

For the Development of Organisations, Products and Quality of Life.

Born Global firms createdby different type ofentrepreneurs in differentindustrial contexts

Type of Entrepreneur/industry

New High-tech industry

Mature industry

Marketing Entrepreneur

Born Global Born Global

Technical Entrepreneur

Born Global

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For the Development of Organisations, Products and Quality of Life.

Differences in managerial behavior between small international and non-international firms

Domestic firms International firms

Average (Range) Average (Range)

Deskwork sessions

Number per day 15 (12 - 20) 12 (6-15)

Proportion of time 47% (42 – 53%) 20 (13-29%)

Telephone calls

Number per day 17 (13 - 19) 12 (8-18)

Proportion of time 15% (11 – 22%) 13% (10-15%)

Scheduled meetings Number per day 1 (0 - 2) 3 (3-4)

Proportion of time 12% (9 – 16%) 52% (40-61%)

Unscheduled meetings

Number per day 20 (11 - 25) 10 (6-13)

Proportion of time 17% (9 – 24%) 10% (9-13%)

Tours

Number per day 5 (3 - 8) 1 (0-2)

Proportion of time 8% (5 – 14%) 1% (0-1%)

For the Development of Organisations, Products and Quality of Life.

Roles shoulder by manager

Domestic firms International firms Average (Range) Average (Range)

Inte

rper

son

al r

oles

Figurehead 0 (0-0)%

10% 26%

0 (0-0)%

Leader 6 (1-10)% 21 (16-26)%

Liaison officer 4 (1-11)% 5 (0-15)%

Info

rmat

ion

al r

oles

Monitor 9 (6-12)%

14% 30%

17 (9-24)%

Disseminator 2 (1-3)% 3 (1-4)%

Spokesman 3 (2-4)% 11 (3-22)%

Dec

isio

nal r

oles

Entrepreneur 9 (3-13)%

24% 37%

26 (19-31)%

Disturbance handler

3 (1-4)% 5 (0-13)%

Resource allocator

10 (3-16)% 3 (1-6)%

Negotiator 2 (0-4)% 3 (0-6)%

Ope

rati

onal

rol

es

Specialist 46 (30-63)%48% 5%

5 (2-7)%

Substitute operator

2 (0-4)% 0 (0-0)%

Other 4 (1-6)% 4% 2% 2 (1-5)%

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For the Development of Organisations, Products and Quality of Life.

Managers in Born Globals compared with managers in domestic oriented firms

• Less operative• Delegate more• More planning• More proactive

For the Development of Organisations, Products and Quality of Life.

Management/leadership• 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

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For the Development of Organisations, Products and Quality of Life.

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

• 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

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For the Development of Organisations, Products and Quality of Life.

Thank you very much

Questions and Comments?

For the Development of Organisations, Products and Quality of Life.

References• 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)