Are born global firms really a “new breed” of exporters? Empirical evidence from an emerging market

Abstract

This study investigates and compares born global (BG) firms and non-BG firms in Malaysia. We employed the multigroup analysis technique with structural equation models to test six hypotheses to determine the differences and similarities between two proposed models of BG and non-BG firms across a wide range of industries. The study reveals differences between the antecedents of marketing capabilities for BGs versus non-BGs, indicating that the performance enabling mechanisms differ between the groups. More precisely, the ability of BG firms to convert digital and entrepreneurial orientations into marketing capabilities is found to be a distinguishing characteristic of these firms. Moreover, non-BGs utilize government support to build marketing capabilities and obtain superior performance in the international market. This result suggests that governmental export promotion initiatives in Malaysia should be adjusted to increase relevance for BGs. The findings indicate that marketing capabilities play an essential role in the international market performance of both BGs and non-BGs. An important implication is that managerial focus and actions need to be adjusted depending on the type of firm. The two types of firms are not equal; if they are managed similarly, misjudgment will arise.