How does the knowledge transformation process accelerate the internationalization of born global firms: a qualitative case study of Franz Collection Inc.
Date Issued
2011
Date
2011
Author(s)
Huang, Hsiu-Ying
Abstract
The acceleration internationalization of born global firms has drawn substantial research attention for recent decades. Unlike conventional global firms, few born global firms possess abundant resources before significant international involvement, and this makes their immediate international involvement after the establishment even more salient. The purpose of the research is to explore how born global firms accelerate their internationalization from a knowledge-based capability perspective.
Using an in-depth case study to examine the knowledge transformation process of a Taiwanese born global firm, FRANZ Collection Inc., in the context of global branding and product strategy development, this research found that though the “indigenous” knowledge resource, ie, founder experience, plays an important role in the internationalization process of such firms, the transformation process of international knowledge may more adequately account for the difference in internationalization at conventional global firms and born global firms.
Evidence demonstrates that born global firms accelerate their internationalization process by rapidly acquiring international knowledge and transforming it into concrete company strategies and working procedures through a three-stage transformation process: knowledge acquisition and dissemination, knowledge integration, and knowledge institutionalization. In addition, two knowledge mechanisms underlying the knowledge transformation process are identified as the sources of acceleration: vertical and horizontal knowledge thrust.
The center of internationalization strategy is brand positioning and product strategy. Evidence shows that generation of global brand positioning is a process of harmonization. Through the process a time enduring universal appeal, nature and humanity, for the products across generations and borders is developed. There are at least three pairs of seemingly contrasting elements need to be harmonized to generate a unique brand positioning. The three fusions are: western and eastern cultures; historical heritage and modern innovation; hand-craftsmanship and mass-production. The harmonizing process occurs through four important sequential stages: learning and absorbing, extracting and engendering, inventing, and institutionalizing.
Furthermore, four capabilities are identified from the process of product development strategy. They are: a global information collecting and disseminating process (capability exploration), a disciplined creativity generation process (capability exploitation), a congruent market-oriented consensus (capability exploitation), and a cross-border product preview process (capability exploration). These four capabilities complement and interact to create a successful new global product development process.
The findings of the research fill out the research gap on how internationalization knowledge facilitates the speed of internationalization in born global phenomenon. They complement the explanation of the accelerated internationalization of born global firms by shifting the focus from the “indigenous” knowledge resource to the knowledge transformation process. The identified knowledge process and mechanisms, as well as brand positioning and product strategy, have managerial implications for resource-scarce born global firms as well as resource-endowed international firms. For those global managers that are seeking control methods to influence their knowledge process and superior global marketing strategies, this study provides them with practical knowledge strategy.
Subjects
Born Global Firms
Accelerated Internationalization
Knowledge Transformation
Knowledge Mechanism
Global Positioning
Global Product Development
Type
thesis
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