An integrated framework of de-internationalization strategies for smaller born-globals

Abstract

A review of the literature emerging from a number of areas on smaller born-globals reveals that it is fragmented with no coherent theoretical framework. In particular, current conceptualizations of the born-global fail adequately to consider the use of outward-inward strategic partnerships and deinternationalization. This paper draws on in-depth interviews with senior managers in smaller bornglobals, to address this research gap and reveals the movement between outward and inward relational entry modes used as a proactive de-internationalization strategy by these firms, during periods of economic decline such as that experienced globally after the dot com crash of 2000. Building on existing theories of network perspective and Dunning’s OLI paradigm, a framework provides explanation of the use of multiple entry modes and ‘switching’ from outward to inward strategies, such as strategic alliance to exclusive reseller, to allow smaller-born globals to continue to expand their commitment to international markets through business relationships.