Strategic re-structuring by born-globals using outward and inward-oriented activity

Abstract

PURPOSE – Current conceptualizations of born-globals lack a full theoretical explanation of strategic re-structuring through the use of outward and inward-oriented activity and the processes of de-internationalization and re-internationalization. Strategy and internationalization processes are created by entrepreneurial behaviour. If one wants to understand various international behaviours and strategic changes in firms one needs to focus on entrepreneurs – individual managers. The purpose of this paper is to unify the theoretical framework on born-globals by addressing two questions. How do managers move through the de-internationalization (exit) to re-internationalization (re-entry) process? How do they choose their patterns of internationalization? DESIGN/METHODOLOGY/APPROACH – To address these research gaps, this study draws on 26 in-depth interviews with senior managers across nine Australian born-globals. FINDINGS – Moving between outward and inward-oriented activity as they de-internationalize and re-internationalize is used as proactive strategic re-structuring by born-global managers for survival during periods of global economic decline or changing competitive conditions. ORIGINALITY/VALUE – This study provides new theoretical insights where the entrepreneur is central to the internationalization process and provides practical implications for those involved in international business and marketing.