Social Capital in the Performance on Born Global: Systematic Literature Review

Overview of Selected Articles

An overview of year distribution in this article (see Apendix 1). Ninety-four journals were identified on the subject of “Born Global” and “Social Capital” from 2003 to 2020. The geographical distribution of the research is presented in Table 2, which shows that this topic has been explored in more than 30 countries, and most of which (79%) were industrialized countries rather than developing countries (21%). This result reveals that most BG research requires further exploration in developing countries.

In terms of region, many studies have been conducted in Asia (18%), Northern Europe (17%), Southern Europe (12%), and Oceania (12%). Most of the papers have used cross-national data from different country or region without any comparison between them, and small portion have explored the concepts in more than two regions. We argue that previous research has tight limitation about research area, number of countries in their research quite small, it should be improving more area and comparison case to create various research. Previous research has discussed BG, which involves building an international BG market through SC and product innovation simultaneously (Presutti et al., 2020) but authors did not break down SC as a levelling and discusses BG and new organizational level conceptual (Nguyen et al., 2020). Previous articles not focus yet with role of SC on individual level as owner, founder and manager. Several other studies have expressed disagreement among researchers about the importance of certain SC configurations (structural, relational, and cognitive) for foreign innovation activity of BG firms (Freeman et al., 2006). Moreover, different configurations of SC required different types of effort and resources in the evolution of BG (Starkey & Tempest, 2010; Zahra et al., 2009). Following other studies, this research focuses on the evolution of the relationship between BG and key foreign customers (Pirolo & Presutti, 2010; Yli-Renko et al., 2002).

Theory

Fifty-one qualitative journals discussed how internationalization theory aided in building BG theory (Evers et al., 2019; Jiang, 2020; Kahiya, 2020), 67% on international entrepreneurship (Aspelund et al., 2018); 11% talk about network (Ryan et al., 2019; Sepulveda & Gabrielsson, 2013); SC topic is 15% (Gittins et al., 2015; Ryan et al., 2019); about knowledge 3% (Hughes et al., 2019; Kumar, 2012); resource-based view topic is 2% (Freeman et al., 2006) and 1% talk about institutional complexity(Liu, 2017) (1%). Forty-three quantitative journals, 65% discuss internationalization theory (Shrader et al., 2000), 21% about cognitive theory and internationalization (Sharma & Blomstermo, 2003; Manolova and Yan, 2002); 5% talk about the dynamic capability as a theoretical starting point of BG (Eisenhard & Graebner, 2007; Teece, 2000), social networks topics is 7%, and 2% about global start-ups (Nahapiet & Ghosal, 1998; Moran, 2005). Our highlight is their theories follow the internationalization topic but still used cross-theory or diverse theories to enrich knowledge and theoretical perspectives.

Methodology

The sample of this study included 19 theoretical papers and 74 empirical papers. 51 qualitative studies that have conceptual output to be tested in empiric research in further quantitative studies and 43 quantitative studies that tested models by antecedents, moderators, mediators and outcome variables. Much of the empirical research include case studies, both single and multiple. Single case studies are research conducted on one sample study (Aspelund et al., 2018), and multiple case studies involved four wireless technology entrepreneurs in Finland (Laanti et al., 2007), and seven Hongkong entrepreneurs Lundberg & Rehnfors (2011). The literature reviews included a critical review of a single Cavusgil paper (Coviello, 2015) to the bibliometrics analysis of 453 WoS paper (Dzikowski, 2018). Quantitative research has mostly used regression and the Structural Equation Model (SEM) method. Regression sample range started from surveys of 16 incubators in Sweden (Aaboen & Löfsten, 2015) to 88,628 entrepreneurs across 61 societies (Cheraghi & Schøtt, 2016), as well as a Structural Equation Model (SEM) method on 102 Spanish born-global SMEs (Rodríguez-Serrano & Martín-Velicia, 2015) to 2,000 firms from 1,000 New Zealand and 1,000 Australian firms (Gerschewski et al., 2015). In terms of data, most research has focused on industrial-level firms (n = 65); only 29% of papers discuss the SME Born Global (n = 27). This phenomenon shows that SME discussion, as a Born Global firm, is more limited than any discussion on an industrial level. In this study, we cluster SC on individual and organizational levels although some articles not mention of this clustering.of SLR. We think that previous articles use single level only, there are no multilevel approach. Authors should use multi-levels approach to able to find out in more detail the influence or relationship across variables and across levels to be developed further.

Born Global and Social Capital

About SC leveling in BG topics, previous research has found that, among all the antecedents used to support BG internationalization, SC is the most important. According to Presutti et al. (2007), the structural dimensions of SC have a greater impact than relational and cognitive factors. Human and SC influence the level of intended export, whereas cognitive characteristics, such as self-efficacy and risk aversion, do not seem to influence export level. In other studies, human and SC, including experience and industry know-how, are found to be more accurate predictors of internationalization than a firm’s age or size (Reuber & Fischer, 1997; Westhead et al., 2001).

As stated in Table 2, it can be seen that many studies have different perspectives in defining SC. Some research has found that SC is a part of Born Global resources. In qualitative research, SC is a part of resource-based theory (Jones & Coviello, 2005) and refers to a set of resources embedded in an entrepreneur social network in Cannone et al. (2014); it is a resource for innovation and strategic renewal in BG internationalization (Prashantham, 2008) supported by the quantitative findings of Yarbrough et al. (2017) that SC requires former government officials on board of directors to prove to be valuable to firms. From a different perspective, quantitative research has found that social capital emerges from networks. Krau et al. (2017) states that SC develops through network relationships and task outcomes such as intercultural skills. SC involves recognizing intangible implications that arise from inter-firm relationships within a network (Nahapiet & Ghoshal, 1998).

This finding is supported by Coviello (2015) in his qualitative research, which found that the greater the range or size of the INV network, the greater the potential access to information and other resources, thus increased SC (Borgatti et al., 1998; Greve & Salaff, 2003). Few studies have argued that SC is a source of knowledge (Presutti et al., 2007); when BG firms develop business relationships, the more likely they are to acquire new knowledge and exploit it as a basis for reinforcing foreign growth (Doz et al., 2001; Yli-Renko et al., 2002; Pressuti et al., 2007). We conclude from the review above that the presence of SC in BG is an important mechanism tool as a means of accelerating the company to become a born global company through the knowledge and network owned by both the founder and the company. We think that many perspectives about SC to create a network but the authors do not mention detail about where the networks come from individual or organizational level (within level). In further we need SC levelling in BG topics with leveling and show which the most impact that affect BG performance (between level).

Born Global Variables

This section describes the research antecedents used in BG database articles. The coding antecedent results are formulated in Figure 1. In systematic reviews, articles on quantitative research produced more valid, significant antecedents. Figure 1 illustrates that quantitative research has fewer moderator variables (learning, capability and capacity, and strategy) than others variables. This result may be because a number of studies have used moderating variables, which would have modified relationship between independent to dependent variables. Most of research have a direct and indirect relationship within mediator variable (capability and capacity, innovation, performance, network, etc.) and control variables (age, size, experience, etc.).

OPEN IN VIEWER

Figure 1.

Literature search and process.

Based on data coding results from 94 articles, the researcher formulated that network is an important factor of BG firms. Based on the findings of Coviello (2006), the structural characteristics of INV (International New Ventures) networks may be similar, but the process-based relationships underlying them are not. To create international markets and network, entrepreneurs in membership of a local horizontal network share collective market knowledge and communal global customer information within networks for mutual benefits (Ryan et al., 2019) to support BG entrepreneurs’ knowledge in internationalization. Sharma and Blomstermo (2003) argue that BG firms possess international market knowledge before their first foreign market entry, foreign market entry mode is based on their existing knowledge and that supplied by their network ties and foreign market by motivational (Campos, 2017). In creating networks, entrepreneurs should maintain domestic markets, as stated by Sigfusson and Harris (2013). International entrepreneurs should not ignore strong domestic markets that they can easily address, and IEs in global technological fields should be aware of the risks of over-attention to their strong relationships with domestic customers. The same also occurs in Born Global firms in SME sectors; Weerawardena et al. (2019) found that small start-up firms develop these knowledge-based capabilities very early in the careers of founders and that the knowledge becomes the congenital knowledge of nascent firm. Melén and Nordman (2009) suggest that integrating the knowledge-based internationalization process theory and international entrepreneurship research may enhance the understanding of BG firms’ continued internationalisation. As internationalization knowledge is growing, and while notable contributions towards theoretical and methodological integration are evident, the field is described as phenomenon-based, potentially fragmented, and suffering from theoretical paucity (Jones et al., 2009).

Furthermore, the experience of the entrepreneur also plays an important role. Tiwari and Korneliussen (2018) state that the internationalization of resource-poor SMEs relies on entrepreneurs’ experiential knowledge, which is largely acquired through prior experience, social networks, and participation in international trade fairs. Furthermore, the growth of this BG case industry has been significantly influenced by the work of a handful of ambitious and extremely technically competent international entrepreneurs and the risk-seeking behavior of their firms rather than favorable structural industry conditions (Aspelund et al., 2018). Some articles show that SC as founders are key of BG company success and make firm performance increase (Buttice, 2017; Birasnav, 2019) (Figure 2).

OPEN IN VIEWER

Figure 2.

Born global variables.

After paying attention to the results of mapping articles related to BG and SC, as well as finding leveling in SC, we propose a new definition related to BG as presented in the following figure:

The new definition of BG related to SC is (1) the founder’s approach to BG based on SC leveling. (2) is the founder’s orientation to entrepreneur and learning orientation, knowledge, and experience. (3) organizationally to achieve network capability, operational capability and capacity, organizational market orientation (4) to achieve BG performance.

Social Capital Cluster

Based on the results of the database analysis, there are clusters in SC discussion. The discussion of SC clusters itself still has no general direction. Based on the research database analysis, clusters in SC literature are divided into four groups (Figure 3): (1) SC as an individual resource in 47% of studies; (2) SC as firm resource in 17% of studies; (3) a combination of both individual and firm-level connection to support Born Global growth in 13% of studies; and (4) SC not being found as cluster in 23% of studies (Figure 4).

OPEN IN VIEWER

Figure 3.

The role of SC on BG.

OPEN IN VIEWER

Figure 4.

Cluster of SC from data base articles.

Theoretical Research Direction

The discussion of SC is a field that requires further consideration. In the early stages of discussion, Granovetter (1985) and Uzzi (1997) state that BG firms can leverage the rich SC in their home country’s horizontal network for accelerated international market entry and growth by quality of SC embedded in economic actors’ relationships, or whether actors are connected through strong or weak ties. During the years of theory developed on BG, there some deconstruction of network dynamics and relationships between networks and resources (among other areas). Jones et al. (2011) state that network research in IE appears to recognize that network ties are more than just “strong” or “weak” because they include many factors.

Methodological Research Direction

The methodology used in existing research includes qualitative and quantitative designs. The number of qualitative journals (51 studies) in this review exceeds that of quantitative journals (43 studies). In total, across the 100% qualitative database, there is a balance between literature reviews (44%) and empirical research (56%). Literature reviews (24%) make up a larger segment than systematic literature reviews (8%), bibliometrics (4%), and other literature methods (10%). In the empirical research, the majority of the studies were case studies (54%), and the rest (2%) involved in-depth interviews. This data shows that qualitative reviews on BG are still dominant as the common literature method compared to methods. In qualitative empirical research, most of them use case study even though they still did a minimum number of informant but can bring up phenomenon of BG in each fields. However, in terms of antecedent formulation, there are more complex antecedents considered in qualitative research, which is because literature reviews can be taken from numerous previous studies, whereas in-depth interviews can produce more variables during the interactions of researcher and informants in a specific field. Therefore, the formulation of antecedent seems more flexible than quantitative research.

In the cross-country discussion, database articles suggest that BG and SC have been explored in more than 30 countries, most of which (79%) are in industrialized country, with only 21% in developing countries. Research is growing in developing countries, though the number of studies conducted is low. It is hoped that BG research in developing countries would enrich the development of research and growth of the practice of BG firms’ internationalization.

Topic Research Direction

From theorical and methodological, future research direction could explain from SLR result by highest or the most rarest history. New topic that discussed before should be mention in this future research direction for improve new theory and arguments. The initial conditions for the discovery of the BG phenomenon and SC theory will certainly be different from the current conditions where the Z generation was born. This would be very interesting future research direction.