Weitere Artikel dieser Ausgabe durch Wischen aufrufen
To date, there has been little research about the corporate growth of born-global companies and relatively little data exist about their maturation, survival as independent companies (or failure to do so) and their international strategies. The present paper is based on an empirical study of Israeli technology-based companies that were identified in the late 1990s as born global. We collected data about the continuing development of these firms for the decade spanning 2000–2009. Our findings show that maturing technology-based, born-global companies can increase their chances of survival by acquiring other firms. Although such acquisitions do not increase profits, they allow born-global firms to continue increasing their sales and to expand and upgrade their product line, which in turn increases their chances of remaining independent. The data also show that if the firms prefer to merge with another company, they are in a better position if they do not acquire any other firms beforehand. Finally, our data show that although the majority of born-global companies can continue operations if they survived the first decade, they are not highly successful on the measures of growth and shareholder wealth. One of the recommendations of this study is that for maturing, technology-based, born-global companies to remain successful, they must be more aggressive in their M&A strategy than they are at the moment.
Bitte loggen Sie sich ein, um Zugang zu diesem Inhalt zu erhalten
Sie möchten Zugang zu diesem Inhalt erhalten? Dann informieren Sie sich jetzt über unsere Produkte:
Acs, Z. J., Morck, R., Shaver, J. M., & Yeung, B. (1997). The internationalization of small and medium sized enterprises: a policy perspective. Small Business Economics, 9(1), 7–20.
Agarwal, R. C., & Helfat, E. (2009). Strategic renewal of organizations. Organization Science, 20(2), 281–293.
Ahammad, F. M., Glaister, K. W., Weber, Y., & Tarba, S. Y. (2012). Top management retention in cross-border acquisitions: the roles of financial incentives, acquirer’s commitment and autonomy. European Journal of International Management, 6(4), 458–480.
Almor, T. (2011). Dancing as fast as they can: Israeli high-tech firms and the great recession of 2008. Thunderbird International Business Review, 53(2), 109–276.
Almor, T. (2013). Conceptualizing paths of growth for the technology-based, born-global firm originating in a small population, advanced economy. International Studies of Management and Organization, 43(2), 56–78.
Almor, T., & Hashai, N. (2004). Competitive advantage and strategic configuration of knowledge-intensive small and medium sized multinationals: a modified resource based view. Journal of International Management, 10(4), 479–500.
Almor, T., & Hirsch, S. (1995). Outsiders’ response to Europe 1992: theoretical considerations and empirical evidence. Journal of International Business Studies, 26(2), 223–238.
Almor, T., Tarba, S. Y., & Benjamini, H. (2009). Unmasking integration challenges: the case of Biogal’s acquisition by Teva Pharmaceutical Industries. International Studies of Management and Organization, 39(3), 33–53.
Amin, A., & Thrift, N. (1994). Living in the global. In A. Amin & N. Thrift (Eds.), Globalization, institutions and regional development in Europe (pp. 1–22). Oxford: Oxford University Press.
Ansoff, H. I. (1957). Strategies for diversification. Harvard Business Review, 35(5), 113–124.
Aspelund, A., & Moen, O. (2001). A generation perspective on small firms: internationalization: from traditional exporters and flexible specialists to born globals. In C. N. Axinn & P. Matthyssens (Eds.), Reassessing the internationalization of the firm (pp. 197–226). Amsterdam: JAI/Elsevier.
Autio, E., Sapienza, H. J., & Almedia, J. G. (2000). Effects of age at entry, knowledge intensity, and imitiability on international growth. Academy of Management Journal, 43(5), 9090–9924.
Avnimelech, G., & Teubal, M. (2006). Creating venture capital (VC) industries that co-evolve with high tech clusters: insights from an extended industry life cycle perspective of the Israeli experience. Research Policy, 35(10), 1477–1498.
Bank, D., & Almor, T. (2014). Business education in a young, entrepreneurial country. In V. Jones, J. McIntyre & I. Alon (Eds.), Innovation in business education in emerging markets.
Barkema, H.G., & Vermeulen, F. (1998). International expansion through start-up or acquisition: a learning perspective. Academy of Management Journal, 41(1), 7–26.
Barrow, C., Burke, G., Molian, D., & Brown, R. (2005). The challenges of starting, growing and selling businesses: Enterprise development. London: Thomson.
Bell, J. D. (1995). The internationalisation of small computer software firms. European Journal of Marketing, 29(8), 60–75.
Bell, J. D., McNaughton, R. B., Young, S., & Crick, D. (2003). Towards an integrative model of small firm internationalization. Journal of International Entrepreneurship, 1(4), 339–362.
Benson, D., & Ziedonis, R. H. (2009). Corporate venture capital as a window on new technologies: implications for the performance of corporate investors when acquiring startups. Organization Science, 20(2), 329–351.
Blass, A., & Yafeh, Y, (1998). Vagabond shoes longing to stray: why Israeli firms list in New York: causes and implications. Discussion paper no. 98.02 Bank of Israel, Research dept.
Bloodgood, J. M., Sapienza, H. J., & Almeida, J. G. (1996). The Internationalization of new high potential US new ventures. Entrepreneurship Theory and Practice, 20(4), 61–76.
Brouthers, K. D., & Brouthers, L. E. (2000). Acquisition or greenfield start-up? institutional, cultural and transaction cost influences. Strategic Management Journal, 21(1), 89–97.
Capron, L. (1999). The long-term performance of horizontal acquisitions. Strategic Management Journal, 20(11), 987–1018.
Chaudhuri, S., & Tabrizi, B. (1999). Capturing the real value in high-tech acquisitions. Harvard Business Review, 77(5), 123–130.
Chorev, S., & Anderson, A. R. (2006). Success in Israeli high-tech start-ups: critical factors and process. Technovation, 26(2), 162–174.
Christensen, M. (1997). The innovator’s dilemma. Boston: Harvard Business School Press.
Cording, M., Christmann, P., & King, D. R. (2008). Reducing causal ambiguity in acquisition integration: intermediate goals as mediators of integration decisions and acquisition performance. Academy of Management Journal, 51(4), 744–767.
Coviello, N. E., & Munro, H. J. (1995). Growing the entrepreneurial firm: networking for international market development. European Journal of Marketing, 29(7), 49–61.
Coviello, N. E., & Munro, H. J. (1997). Network relationships and the internationalization process of small software firms. International Business Review, 6(4), 114–135.
Cusumano, M., & Yoffie, D. (1998). Competing on internet time: lessons from Netscape and its battle with Microsoft. New York: Free Press/Simon & Schuster.
Dana, L. P., Eternad, H., & Wright, R. W. (1999). Theoretical foundations of international entrepreneurship. In A. M. Rugman & R. W. Wright (Eds.), Research in global strategic management. International entrepreneurship: globalization of emerging businesses. Stamford: JAI Press.
Delios, A., & Beamish, P. W. (1999). Geographic scope, product diversification, and the corporate performance of Japanese firms. Strategic Management Journal, 20(8), 711–727.
Economist. (2008). Land of milk and start-ups. Silicon Wadi vs. Silicon Valley. www.economist.com, March 19.
Efrat, K., & Shoham, A. (2012). Born-global firms: the differences between their short- and long-term performance drivers. Journal of World Business, 47(4), 675–685.
Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121.
Ellis, K. M., Reus, T. H., & Lamont, B. T. (2009). The effects of procedural and informational justice in the integration of related acquisitions. Strategic Management Journal, 30(2), 137–161.
Ellis, K. M., Weber, Y., Raveh, A., & Tarba, S. Y. (2012). Integration in large, related M&As: linkages between contextual factors, integration approaches and process dimensions. European Journal of International Management, 6(4), 368–394.
Engel, J. S., & del-Palacio, I. (2011). Global clusters of innovation: the case of Israel and Silicon Valley. California Management Review, 53(2), 27–49.
Foster, R. N. (1986). Innovation: the attackers advantage. New York: Summit Books.
Freeman, S., & Cavusgil, T. (2007). Towards a typology of commitment states among managers of born-global firms: a study of accelerated internationalization. Journal of International Marketing, 15(4), 1–40.
Gabrielsson, M., & Kirpalani, V. H. M. (2004). Born globals: how to reach new business space rapidly. International Business Review, 13(5), 555–571.
Geringer, J. M., Beamish, P. W., & DaCosta, R. C. (1989). Diversification strategy and internationalization: implications for MNE performance. Strategic Management Journal, 10(2), 109–119.
Geringer, J. M., Tallman, S., & Olsen, D. M. (2000). Product and international diversification among Japanese multinational firms. Strategic Management Journal, 21(1), 51–80.
Gomes, E., Angwin, D., Weber, Y., & Tarba, S. Y. (2013). Critical success factors through the mergers and acquisitions process: revealing pre- and post- M&A connections for improved performance. Thunderbird International Business Review, 55(1), 13–35.
Gomes, E., Weber, Y., Brown, C., & Tarba, S. Y. (2011). Mergers, acquisitions and strategic alliances: understanding the process. New York: Palgrave MacMillan.
Graebner, M. E. (2004). Momentum and serendipity: how acquired leaders create value in the integration of technology firms. Strategic Management Journal, 25(8–9), 751–777.
Graebner, M. E., & Eisenhardt, K. M. (2004). The other side of the story: acquisition as courtship and governance as syndicate in entrepreneurial firms. Administrative Science Quarterly, 49(3), 366–403.
Graebner, M. E., Eisenhardt, K. M., & Roundy, P. T. (2010). Success and failure in technology acquisitions: lessons for buyers and sellers. Academy of Management Perspectives, 24(3), 73–92.
Graebner, M. E., & Sjolander, S. (1990). The acquisition of technology and small firms by large firms. Journal of Economic Behavior, 13(4), 72–91.
Grant, R. M., Jammine, A. P., & Thomas, H. (1988). Diversity, diversification, and profitability among British manufacturing companies, 1972–84. Academy of Management Journal, 31(4), 771–801.
Haleblian, J., Devers, C. E., McNamara, G., Carpenter, M. E., & Davison, R. B. (2009). Taking stock of what we know about acquisitions and acquisitions: a review and research agenda. Journal of Management, 35(3), 469–502.
Hashai, N. (2011). Sequencing the expansion of geographic scope and foreign operations by “born-global” firms”. Journal of International Business Studies, 42(8), 995–1015.
Hashai, N., & Almor, T. (2004). Gradually internationalization ‘born-global’ firms: an oxymoron? International Business Review, 13(4), 465–483.
Hayward, M. L. A. (2002). When do firms learn from their acquisition experience? evidence from 1990–1995. Strategic Management Journal, 23(1), 21–40.
Hennart, J. F., & Park, Y. R. (1993). Greenfield vs. acquisition: the strategy of Japanese investors in the United States. Management Science, 39(9), 1054–1070.
Hewerdine, L., & Welch, C. (2013). Are international new ventures really new? a process study of organizational emergence and internationalization. Journal of World Business, 48(4), 466–477.
Hill, C. W. L., & Jones, G. R. (2004). Strategic management. Boston: Houghton Mifflin Comp.
Hirsch, S. (1989). Services and service intensity in international trade. Review of World Economics, 125(1), 45–60.
Hitt, M., Harrison, J., Ireland, R. D., & Best, A. (1998). Attributes of successful and unsuccessful acquisition of U.S firms. British Journal of Management, 9(2), 91–114.
Hitt, M. A., Hoskisson, R. E., & Ireland, R. D. (1994). A mid-range theory of the interactive effects of international and product diversification on innovation and performance. Journal of Management, 20(2), 297–326.
Hitt, M. A., Hoskisson, R. E., & Kim, H. (1997). International diversification: effects on innovation and firm performance in product-diversified firms. Academy of Management Journal, 40(4), 767–798.
Hitt, M., King, D., Krishnan, H., Makri, M., Schijven, M., Shimizu, K., & Zhu, H. (2009). Mergers and acquisitions: overcoming pitfalls, building synergy, and creating value. Business Horizons, 52(6), 523–529.
Homberg, F., Rost, K., & Osterloh, M. (2009). Do synergies exist in related acquisitions? a meta- analysis of acquisition studies. Review of Managerial Science, 3(2), 75–116.
Israeli Venture Capital (IVC) Association Research Center’s report on exits. (2012). http://www.ivc-online.com.
Jones, M. V. (1999). The internationalisation of small UK high technology firms. Journal of International Marketing, 7(4), 15–41.
Jones, M. V., & Coviello, N. E. (2005). Internationalisation: conceptualizing an entrepreneurial process of behaviour in time. Journal of International Business Studies, 36(3), 284–303.
Junni, P., & Sarala, R. S. (2011). Cultural ambiguity, cultural integration, and partner attractiveness as determinants of knowledge transfer: evidence from Finnish acquisitions. European Journal of International Management, 5(4), 346–372.
Junni, P., & Sarala, R. S. (2013a). The roles of cultural learning and collective teaching initiatives in M&A knowledge transfer. European Journal of Cross-Cultural Competence and Management, 2(3), 275–298.
Junni, P., & Sarala, R. S. (2013b). The role of absorptive capacity in acquisition knowledge transfer. Thunderbird International Business Review, 55(4), 419–438.
Keeble, D., Lawson, C., Lawton Smith, H., Moore, B., & Wilkinson, F. (1998). Internationalisation processes, networking and local embeddedness in technology-intensive small firms. Small Business Economics, 11(4), 327–342.
King, D., Dalton, D., Daily, C., & Covin, J. (2004). Meta-analyses of post-acquisition performance: indications of unidentified moderators. Strategic Management Journal, 25(2), 187–200.
King, D., Slotegraaf, R., & Kesner, I. (2008). Performance implications of firm resources interactions in the acquisition of R&D intensive firms. Organization Science, 19(2), 327–340.
Knight, G., & Cavusgil, S. T. (2004). Innovation, organizational capabilities, and the born-global firm. Journal of International Business Studies, 35(2), 124–141.
Laamanen, T., & Keil, T. (2008). Performance of serial acquirers: toward an acquisition program perspective. Strategic Management Journal, 29(6), 633–672.
Levi, O. (2005). Three of Cisco’s four Israeli acquisitions fail. Globes, January 12, 2005.
Lewin, A. Y., & Massini, S. (2003). Knowledge creating and organizational capabilities of innovating and imitating firms. Paper presented at the DRUID summer conference on creating, sharing, and transferring knowledge. Copenhagen, June 12–14.
Makri, M., Hitt, M. A., & Lane, P. J. (2010). Complementary technologies, knowledge relatedness, and invention outcomes in high technology mergers and acquisitions. Strategic Management Journal, 31(6), 602–628.
Manigart, S., & Sapienza, H. (1999). Venture capital and growth. In D. L. Sexton & H. Lanström (Eds.), International state of the art in entrepreneurship research (pp. 240–258). Oxford: Blackwell Pubs.
McNaughton, R. B. (2000). Determinants of time-span to foreign market entry. Journal of Euromarketing, 9(2), 99–112.
Melen, S., & Nordman, E. R. (2009). The internationalisation modes of born globals: a longitudinal study. European Management Journal, 27(4), 243–254.
Moen, Ø., & Servais, P. (2002). Born global or gradual global? examining the export behavior of small and medium-sized enterprises. Journal of International Marketing, 10(3), 49–72.
Montgomery, C. A., & Wernerfelt, B. (1988). Diversification, Ricardian rents, and Tobin-Q. Rand Journal of Economics, 19(4), 623–632.
Mowery D. C., Oxley J. E., & Silverman B. S. (1996). Strategic alliances and interfere knowledge transfer. Strategic Management Journal, 17(special winter issue), 77–91.
Nordman, E. R., & Melen, S. (2008). The impact of different kinds of knowledge for the internationalization process of born globals in the biotech business. Journal of World Business, 43(2), 171–185.
Oviatt, B. M., & McDougall, P. P. (1994). Toward a theory of international new ventures. Journal of International Business Studies, 25(1), 45–64.
Oviatt, B. M., & McDougall, P. P. (1997). Challenges for internationalization process theory: the case of international new ventures. Management International Review, 37(2), 85–99.
Palich, L. E., Cardinal, L. B., & Miller, C. C. (2000). Curvelinearity in the diversification-performance linkage: an examination of over three decades of research. Strategic Management Journal, 21(2), 155–174.
Papadakis, V. M., & Thanos, I. C. (2010). Measuring the performance of acquisitions: an empirical investigation using multiple criteria. British Journal of Management, 21(4), 859–873.
Paruchuri, S., Nerkar, A., & Hambrick, D. C. (2006). Acquisition integration and productivity losses in the technical core: disruption of inventors in acquired companies. Organization Science, 17(5), 545–562.
Penrose, E. T. (1956). Foreign investment and the growth of the firm. Economic Journal, 66(262), 230–235.
PriceWaterhouse Coopers Israel Hi-Tech Exit Report (2012). Kesselman & Kesselman.
Puranam, P., Singh, H., & Chaudhuri, S. (2009). Integrating acquired capabilities: when structural integration is (un)necessary. Organization Science, 20(2), 313–328.
Puranam, P., Singh, H., & Zollo, M. (2003). A bird in the hand or two in the bush? integration trade-offs in technology-grafting acquisitions. European Management Journal, 21(2), 179–184.
Puranam, P., Singh, H., & Zollo, M. (2006). Organizing for innovation: managing the coordination-autonomy dilemma in technology acquisitions. Academy of Management Journal, 49(2), 263–281.
Puranam, P., & Srikanth, K. (2007). What they know vs. what they do: how acquirers leverage technology acquisitions. Strategic Management Journal, 28(8), 805–825.
Ranft, A. (2006). Knowledge preservation and transfer during post-acquisition integration. Advances in Mergers and Acquisitions, 5, 51–67.
Ranft, A. L., & Lord, M. D. (2000). Acquiring new knowledge: the role of retaining human capital in acquisitions of high-tech firms. Journal of High Technology Management Research, 11(2), 295–319.
Ranft, A., & Lord, M. D. (2002). Acquiring new technologies and capabilities: a grounded model of acquisition implementation. Organization Science, 13(4), 420–441.
Rasmussen, E. S., & Madsen, T. K. (2002). The born-global concept. Paper presented at 28th EIBA conference, Athens, Greece.
Rennie, M. (1993). Born global. McKinsey Quarterly, 4(2), 45–52.
Rialp-Criado, A., Galvan-Sanchez, I., & Suarez-Ortega, S. M. (2010). A configuration-holistic approach to born-global firms’ strategy formation process. European Management Journal, 28(2), 108–123.
Rialp-Criado A., Rialp-Criado J., & Knight G. A. (2002). The phenomenon of international new ventures, global start-ups and born globals: what do we know after a decade (1993–2002) of exhaustive scientific inquiry? Universitat Autonoma de Barcelona, Departament d’economia de l’empresa Document de treball num. 2002/11. http://hdl.handle.net/2072/156.
Rugman, A. M., & Wright, R. W. (1999). Research in global strategic management. International entrepreneurship: globalization of emerging businesses. Stamford: JAI Press.
Schoenberg, R. (2004). Dimensions of management style compatability and cross-border acquisition outcome. Advances in Mergers and Acquisitions, 3, 149–175.
Schoenberg, R. (2006). Measuring the performance of corporate acquisitions: an empirical comparison of alternative metrics. British Journal of Management, 17(4), 361–370.
Senor, D., & Singer, S. (2009). Start-up Nation: the story of Israel’s economic miracle. A Council on Foreign Relations Book (pp. 240–241).
Shelah, S. (2006). The year of exits. Globes, December 26, 2006.
Slangen, A. (2013). Greenfield or acquisition entry? the roles of policy uncertainty and MNE legitimacy in host countries. Global Strategy Journal, 3(3), 262–280.
Slangen, A., & Hennart, J.-F. (2007). Greenfield or acquisition entry: a review of the empirical foreign establishment mode literature. Journal of International Management, 13(4), 403–429.
Slangen, A., & Hennart, J.-F. (2008). Do multinationals really prefer to enter culturally-distant countries through greenfields than through acquisitions? the role of parent experience and subsidiary autonomy. Journal of International Business Studies, 39(3), 472–490.
Sorkin, A. R. (2009). More deals likely for Dell. DealBook: The New York Times.
Stahl, G. K., & Voigt, A. (2008). Do cultural differences matter in mergers and acquisitions? a tentative model and examination. Organization Science, 19(1), 160–176.
Tarba, S. Y., Almor, T., & Benyamini, H. A. (2012). Comparative anatomy of two cross-border acquisitions by Teva Pharmaceutical Industries. Advances in Mergers and Acquisitions, 10, 75–102.
Thanos, I. C., & Papadakis, V. M. (2012). The use of accounting-based measures for measuring M&A performance: a review of five decades of research. Advances in Mergers and Acquisitions, 10, 103–120.
Traston, I., Sarusi, Y., Kochavi, D., Zisapel, J., & Ayalon, E. (2002). The technology industry as a growth lever. Working Paper, The Herzeliya conference, December 2002.
Tuch, C., & O’Sullivan, N. (2007). The impact of acquisitions on firm performance: a review of evidence. International Journal of Management Reviews, 9(2), 141–170.
Uhlenbruck, K., Hitt, M., & Semadeni, M. (2006). Market value effects of acquisitions involving Internet firms: a resource-based analysis. Strategic Management Journal, 27(1), 4–26.
Vaara, E., Sarala, R., Stahl, G., & Bjorkman, I. (2012). The impact of organizational and national cultural differences on social conflict and knowledge transfer in international acquisitions. Journal of Management Studies, 49(1), 1–27.
Weber, Y., & Tarba, S. Y. (2011). Exploring integration approach in related mergers: post-merger integration in the high-tech industry. International Journal of Organizational Analysis, 19(3), 202–221.
Weber, Y., Tarba, S. Y., & Reichel, A. (2011a). International mergers and acquisitions performance: acquirer nationality and integration approaches. International Studies of Management & Organization, 41(3), 9–24.
Weber, Y., Tarba, S. Y., & Rozen-Bachar, Z. (2011b). Mergers and acquisitions performance paradox: the mediating role of integration approach. European Journal of International Management, 5(4), 373–393.
Weber, Y., Tarba, S. Y., & Rozen Bachar, Z. (2012a). The effects of culture clash on international mergers in the high tech industry. World Review of Entrepreneurship, Management and Sustainable Development, 8, 103–118.
Weber, Y., Tarba, S. Y., Stahl, G. K., & Rozen Bachar, Z. (2012b). Ingenuity in international mergers and acquisitions: A test of new integration approach paradigm. In Y. Weber (Ed.), Handbook of research on mergers and acquisitions. Cheltenham: Edward Elgar.
Yurov, K. M., Greenstein, S. M., Shanley, M. T., & Potter, R. E. (2013). The role of geographic location in the acquisition strategies of high-technology firms: evidence from computer networking equipment industry. Thunderbird International Business Review, 55(4), 371–385.
Zahra, S. A., Ireland, R. D., & Hitt, M. A. (2000). International expansion by new venture firms: international diversity, mode of market entry, technological learning, and performance. Academy of Management Journal, 43(5), 925–950.
Zilber, T. B. (2006). The work of the symbolic in institutional processes: translations of rational myths in Israeli high tech. Academy of Management Journal, 49(2), 281–303.
Zollo, M., & Meier, D. (2008). What is M&A performance? Academy of Management Perspectives, 22(3), 55–77.
Zollo, M., & Singh, H. (2004). Deliberate learning in corporate acquisitions: post-acquisition strategies and integration capability in US bank mergers. Strategic Management Journal, 25(13), 1233–1256.
- Maturing, Technology-Based, Born-Global Companies: Surviving Through Mergers and Acquisitions
Shlomo Y. Tarba
- Springer Berlin Heidelberg
Neuer Inhalt/© Stellmach, Neuer Inhalt/© BBL, Neuer Inhalt/© Maturus, Pluta Logo/© Pluta, Neuer Inhalt/© hww, digitale Transformation/© Maksym Yemelyanov | Fotolia