Born global companies and dynamic capabilities in a rapidly changing environment

Abstract

Many companies have a vision to globalize from the founding and these companies are called born global companies. Born globals may have shortages compared to traditionally internationalizing companies but they do have also advantages. This study aims to understand how born global companies may overcome the shortages they may face. The focus is on resources and dynamic capabilities.

Dynamic capabilities framework is used to effectively cope with the change happening in the environment. There are multiple ways to utilize dynamic capabilities, and they may give a sustain competitive advantage when used right and with adequate resources. This study evaluates how dynamic capabilities are used and if they do create competitive advantage with the resources the company possess. Furthermore, the study analyses learning advantage of newness.

Empirical analysis was collected through interviews conducted to the three case companies. The companies varied by the age, industry and the size. All the case companies utilize dynamic capabilities to some extent and the older ones with better resources are able to create competitive advantage with the help of dynamic capabilities. Learning capability is emphasized as the most important dynamic capability.