Department of Economics and Business Economics

Born Globals - Is there Fire Behind the Smoke?

Publication: Research - peer-reviewJournal article

DOI

Are Born Globals really different from firms with other start-up histories? We address this question based on a unique longitudinal data set that tracks all Danish manufacturing start-ups founded between 1994 and 2008 (23,201 firms). This novel application of register data allows us to provide the first detailed account of Born Globals compared to proper control groups of other start-ups. Chiefly we investigate firm performance, which in turn permits interference on socioeconomic impact. We find that the occurrence of BGs is not specific to certain sectors, nor does their frequency change in light of rapid ICT progress. However, we find that Born Globals have significantly higher turnover and employment levels as well as job growth rates. Moreover, they show a considerably wider market reach, but little to no productivity advantage compared to firms with less or later internationalization. Thus, Born Globals are special in some but not all aspects.
Original languageEnglish
JournalInternational Business Review
Volume26
Issue number3
Pages (from-to)448-460
ISSN0969-5931
DOIs
StatePublished - 1 Jun 2017

    Keywords

  • Global start-up; International entrepreneurship; Export; Longitudinal; Secondary data source; Econometrics; Register data; Born global

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