Inherently International Enterprise Formation Mechanism

Studies on the process of internationalization always take the forward position among the researches about international marketing. The traditional Stage Model has focused on large, mature multinational enterprise and considered the internationalization as an incremental process. But researchers have found many cases that differ from the stage method since 1980s. They found some new ventures with limited resources seeking to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries from inception. The scholars named the firms Born Globals. This phenomenon was highlighted since the midder of 1990s,and then the researchers got many achievements. Most studies about the phenomenon focus on firms in high-tech industries in developed countries. The main thing I want to discuss is the reasons for the appirence of Born Globals. Then I created a model to find out which factors play important roles in the emergence of Born Globals. After reviewing and summarizing literatures, I found that the existing theories of internationa -lization can't be applicable for Born Globals. So I developed a explanatory model to why Born Globals emerge and presented 10 hypotheses out of the model. Then I took four labor-intensive small and medium sized firms in Hunan province to do a case study research to examine the value of the model. According to this analysis, I found some factors in the given model are not fit for explaning the emergence of Born Globals, then I made some modifications to this model.