World Applied Sciences Journal 30 (10): 1250-1258, 2014
ISSN 1818-4952
© IDOSI Publications, 2014
DOI: 10.5829/idosi.wasj.2014.30.10.161
Corresponding Author: Kamariah Ismail, Management Department, Faculty of Management
and Human Resource Management, Universiti Teknologi Malaysia.
1250
Sustained Competitive Advantage of Born
Global Ventures: A Conceptual Framework
Wafa Khurram, Kamariah Ismail and Syed Khurram Ali Jafri
Management Department, Faculty of Management and Human Resource Management,
Universiti Teknologi Malaysia
Submitted: Dec 04, 2013; Accepted: Feb 12, 2014; Published: Feb 26, 2014
Abstract: Born global internationalization has emerged as the most promising field of the international
entrepreneurship literature in developed countries. Recently, it has gained attention of some researchers from
emerging economies too, though still at its infancy stage. The purpose of this paper is to propose a conceptual
framework for development and sustained competitive advantage of born global SMEs in Malaysia to pursue
recurring calls for appending born global research in emerging countries and integrating multi-disciplinary
theories for appeasing the inconclusiveness and complexity of this global phenomenon. The key assumption
guiding this effort is mandatory role of entrepreneur’s, being heart and soul of the small firms, in determining
speedy internationalization of born global SMEs. Extant review explicates direct and significant relationship of
international entrepreneurial capabilities in creation as well as sustained competitiveness of born global firms,
yet the role of entrepreneur’s psychosomatic resources in is largely unknown. Arguing in the favor of
determining role of positive psychological capital in new venture creation and competitiveness and depicting
it as a missing link in born global literature, an integrated framework is established. Future research
recommendations for empirical investigation of this conceptual framework are given. Limitations and practical
implications are also discussed.
Key words: Born Global Ventures International Entrepreneurship International Entrepreneurial
Capabilities Positive Psychological Capital Sustained Competitive Advantage Small and
Medium Enterprises
INTRODUCTION According to their distinct nature [11], however, the
Born global firms are illustrated as novice enterprises, greatly considered as a factor of unique blend of
with exclusive intentions to seek and grasp opportunities capabilities and resources [4] vis-à-vis entrepreneurs’ role
for creating value and competitive advantage in cross- in seeking, enacting and exploiting opportunities into
border countries [1, 2] at the time of inception or very firms’ competitive advantage [9, 10]. The born global
early stage of development [3, 4]. The growing literature in general [12] and specifically in emerging
significance of born global ventures in leveraging countries [8] illustrates deficiency regarding identification
SMEs internationalization in developed nations [5, 6] is and investigation of the most important entrepreneur
also drifting this phenomenological transformation in related factors of seeking, exploiting and enacting
internationalization process of developing as well as international market opportunities [13]. Moreover, where
emerging economies [7, 8]. Characterized with paucity of traditionally the emphasis has been laid on theoretical and
resources and generally among the small and medium empirical linking of entrepreneurs’ abilities, motivations,
sized group of enterprises, these firms are significantly education, entrepreneurial skills and social networking
innovative and audacious to opt for early on international with success and sustained competitiveness of
business [4, 9] to seek sustained competitiveness in international firms [4, 7, 10, 14], role of the most emerging
international markets as their prime objective [10]. and potentially viable positive psychological capital has
existence and subsistence of these born-global firms is