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BORN GLOBAL STANDARD ESTABLISHERS
IDENTIFICATION OF A NEW RESEARCH FIELD AND
CONTRIBUTION TO NETWORK THEORY
Dr. Simone Wurster 1
Dr. Knut Blind 1, 2, 3
Sebastian Fischer 1, 4
1Chair
of Innovation Economics, University of Technology Berlin
Chair of Standardization, Rotterdam School of Management
Born
Global
3FraunhoferStandard
InstituteEstablishers
for Open Communication Systems (FOKUS), Berlin
Identification of a new Research Field and Contribution
4Deutsche
to NetworkTelekom
Theory AG, Telekom Innovation Laboratories, Berlin
2Endowed
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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TELEKOM INNOVATION
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Agenda
1)
2)
3)
4)
5)
6)
7)
8)
9)
Introduction - Definitions and Relevance
Literature Review and Research Gap
Research Questions
Scientific Approach and Research Framework
Data Sources
General Framework – Success Factors
General Framework – Dynamization
Clusters and Specific Success Factors
Recommendations
(Literature)
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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2
Introduction – Definitions and Relevance
Born Globals
• „company which, from or near its founding, seeks to derive a substantial proportion of its
revenue from the sale of its products in international markets” (Knight, 1997)
• strong and growing academic interest since the emergence of the research stream in year
2000 (see Oviatt/McDougall, 2004)
Standards
• „sets of technical specifications adhered to buy a producer, either tacitly or by formal
agreement“ (David/Greenstein, 1990)
• „accepted by many/all market participants“ (Backhaus, 1999)
De facto standards
• „synonymous with best practices, often result from the practices of specific vendors who
dominate a given market” (Stephens, 2000, Prember, 2006)
• market share ≥50% for several years (see Christensen et al., 1998, Suarez, 2004),
• rising market share and indicators of enduring success (see Suarez, 2004)
• important topic in business for two decades, significant topic in today‘s economy (see
Shapiro/Varian, 1999, Suarez, 2004)
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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3
Literature Review and Research Gap
•
•
•
•
No interface between Born
Global research and de facto
standards
Different opinions concerning
success factors
Dynamic
success factor
models for standardization
processes: Suarez (2004), Lee
et al. (1995)
Literature about success
factors for the establishment
of standards by Born Global
firms: not available so far
Success Factors in Standardization Reserach and Born Global Research
Success Factor
Standardization Research
Born Global Research
Financial strength
Brande name / Credibility
Market power
Alliance formation
Diversity of alliances
Penetration pricing
Collaboration with SSO*
Internationalization
Key persons
IP protection
Early market entry
Niche markets
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
*Standardization Organisations
Legend
Important
Problem
Variation
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Research gap
4
Research Questions
Appropriate
preconditions?
Appropriate
environment?
Factors to maintain
the standard /
remain successful?
Characteristics of the
standardization processes?
How can Born Globals establish
their solutions as international
de facto standards and which
factors facilitate lasting success?
Possibility to identify
specific clusters?
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
Attributes of
successful firms?
Resulting advantages
for the companies?
What theoretical
conclusions can
be derived?
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Scientific Approach and Research Framework
Basis: paradigmatic framework of the Grounded Theory
Source: own graphic based on Strauß/Corbin (1990)
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
LABORATORIES
6
Data Sources (1)
•
Following Holtbrügge/Wessely (2007) three criteria were used to identify a Born
Global:
first international
activities within 3
years after the
foundation of the
company
•
•
entry into a second
international
market less than 3
years later
activities in at least
5 countries and 2
cultural/global
clusters
Focus on Born Globals who established a de facto standard before the age of 18.
Operationalized by a market share of at least 50% for at least 3 years.
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
LABORATORIES
7
Data Sources (2)
Company
Country
Industry
1
USA
S
2
USA
3
4
USA
AUS / USA
5
Company
Industry
12
Country
USA
S
13
USA
S
S
14
USA
S
B
15
D
B
D
B
16
USA
6
IL
I
17
D
S
B
7
USA
CH
18
D
B
8
D
B
19
USA
I
9
USA
I
20
FIN
I
10
D
B
21
USA
11
CH
CH, S
I
F/USA
B
22
Industries: B = biotechnology, I = internet, CH = computer hardware, S = software
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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S
8
All
case
s
N=22
Total
Standardizability
High Added Value
International Product/ Solution
21 20
19 17
17
17 16 16 16 16 15 12 12 12 12 11 11 22
22
22
Ratio
95%
86%
77%
77% 73% 73% 73% 73% 68%
100% 100%
91%
77%
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
55%
55%
55%
Large Partners
Penetration Orientation
Intensive Sales Activities
Growth Management
Price
Specific Management Know-how BML+*
IPO
Financial Resources
Market Leader
Market Sensibility
Economic Assets Founders
Area
Entry Time
Intensive Communication & Market
Education
Outstanding Technical Assets Founders
Sales & Marketing Cooperation
Early in Lead Market
Early Internationalisation
General Framework – Success factors (1)
Company in General
Prod./Tech.
55% 50% 50% 100%
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General Framework – Success factors (2)
Exit Competitors
Long Lead Time
Innovator's Dilemma
50%
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
Technical Disadvantage
55%
Growing Market
68% 59% 50% 50% 91% 86% 64% 55% 55% 55% 50% 77%
Niche Market
68%
73% 68%
International Market Pull
77% 77%
New
Ratio
Trust & Loyalty
11
Strong Need
12
International
15 13 11 11 20 19 14 12 12 12 11 17 12
Optimisation IP Strategy
15
Balanced IP Strategy
17 17 16 15
Advancement
Total
Self-preservation & Lock in
All
case
s
N=22
Quality
Competition
Complementary products, Features
Demand
Openness, Open Elements
Technical Leading Environment/Platform
Product/Technology
Technical Superiority/ Leadership
Area
55%
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General Framework – Dynamization (1)
Company
SF/Area
Price
IPO
Specific Management Know how BML+
Financial Resources
Intensive Sales Activities
Entry Time
Growth Management
Large Partners
Penetration Orientation
1
0
2
2
0
4
0
0
0
4
2
3
5
0
2
3
International Product/Solution
Early Internationalisation
2
High Added Value
Sales & Marketing Cooperation
2
Standardizability
Intens. Communication & Market Edu.
2
0 22
8
1
5
Market Leader
Early in Lead Market
15 15 12 10
Market Sensibility
CC
Economic Assets Founders
Outstanding Technical Assets Founders
17 16 16 20 17 19 21 12 15 12 16 12 17 12 11 11 16 22 22 22
Co-occurrence**,***
OG*
Prod./Tech.
R&D
5
4
5
2
1
5
0
1
0
0
0 11
BML
4
3
6
8 21 19 16 11 11 10 10 10
9
9
7
7
0
0 19 16
EST
2
0
1
0
6
6
4
5
3
3
0
2
2
4
1
3 13
0
8
1
CONS
0
0
0
0
1
1
0
0
0
0
0
0
0
0
0
0
3
0
2
0
PSRS
0
0
0
0
3
2
1
1
1
0
0
1
0
1
0
0
5
0
1
0
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
LABORATORIES
11
General Framework – Dynamization (2)
SF/Area
Product/Technology
Demand
Competition
Complementary Products, Features
Quality
Technical Leading Environment/Platform
Balanced IP Strategy
Optimisation IP Strategy
Self-preservation & Lock in
Niche Market
International Market
International Market Pull
New Market
Growing Market
Trust & Loyalty
Technical Disadvantages
Long Lead Time
Innovator's Dilemma
Exit Competitors
3
2
1
0
2
0
0
0
0 14 12
1
1
4
4
0
3
0
2
2
R&D
6
3
1
2
3
1
1
1
0
0
2
1
1
0
1
1
3
1
13 11
9
8
8
5
3
6
2 12 11 12 11
7
7
4 11 10
8
5
BML
Strong Need
Openness, Open Elements
CC
Advancement
Technical Superiority, Leadership
17 15 15 15 13 11 11 17 16 19 12 20 12 12 11 14 17 12 11 12
Co-occurrence**,***
OG*
7
2
EST
6
6
6
7
1
4 10 10
4
4
4
0
1
3
0
4
6
5
3
4
CONS
0
0
3
1
0
1
1
0
0
0
0
0
0
6
0
0
0
0
3 10
PSRS
4 1 3 3 1 0 0 3 7 2 3 1 2 1 1 2 1 1 1 1
* Occurrence in general independent of links to specific process stages
** Co-occurrence of a success factor and different stages of the process possible
*** Sometimes success factors were mentioned without describing links to specific stages
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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12
Identified Clusters
Platform
Leaders
Platform
Servants
Cross
Platform
Solutions
Platform
Autarkics
B
A
A
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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13
B
Internet
Reputation Before
Standard
Establishment
Know-how
Leadership
Innovative Sales
Modes
A
A
Area
Cross
Platform
Solutions
(w ithout
eco
system s)
N=7
Digital Product
System
Leaders
N=8
Total
8
Ratio
100%
7
5
5
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
5
5
88% 63% 63% 63% 63%
63%
5
5
4
Total
6
5
5
5
4
Ratio
86%
71%
71%
71%
57%
4
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Comp.
63%
Demand
Comp.
Other
Promotors
no additional success
factors
Company
50%
no additional dominant factor
63% 50% 50%
no additional dominant factor
4
Positive Impact of
the Development of
Mass Markets
System Empowering
Demand
no additional dominant factor
Company
Innovative Sales Modes
Lock in Partners
Area
Developer Tools &
APIs
Alliances,
Standardisation
Organisations
Licensing
Profit
M&A
Partner Support,
Program
Market Creation &
Development
Clusters and Success Factors (1)
Other
5
14
Clusters and Success Factors (2)
3
3
3
Ratio
80%
60%
60%
Platform
Servants
N=2
Platform
Expansion
Innovative Sales
Mode
Company
Platform Choice
Area
Total
2
2
2
Ratio
100%
100%
100%
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
no additional dominant
success factor
3
Demand
Comp.
Other
no additional dominant
success factor
3
no additional dominant
success factor
Early Adopters
4
no additional dominant
success factor
Cross-linked
Total
Other
no additional dominant
success factor
Platform
Autarkics
N=5
Word of Mouth
Comp.
Automation
Demand
General Intangible
Advantages
Company
Protection, Patent
Area
60% 60% 60%
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Recommendations (cluster specific)
Cluster
Features
 Ecosystems with own and
external solutions
 Partner-side lock-in effects,
customer lock-ins possible
Benefits, rewards
 Strong partnersided lock-in
effects
Risks and threats
 Mainly radical
innovations
Recommendations
 Offer incentives to invest in the
ecosystem through developers
programs and APIs
 Two-side independence
concerning external
technology
 Customer lock-ins
 Rather low lock-in effects
 Internet solutions often
 Interoperability tends to
have high importance
 Independence of
external
platforms
 Partner-side lock-in
effects can hardly be
used
 Low dependence
on the success of
external
technologies
 Few partner- side lockin effects
 Develop an ecosystem
 Communicate a previously
realized leadership for attracting
partners
 Develop an ecosystem
 Maintain competitive advantage
through knowledge leadership
 Establish interoperability
alliances
 Use of a common /
promising external platform
 Customer lock-in effects
 Support through
platform success
 Compared to the
platform life, can
last longer
 Few partner-side lock-in
effects
 Dependence on the
success of platform
 Potential for competition
from better positioned
platform providers
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
 Select a suitable platform early
 Develop special offers for new
platforms
 Lead through innovation
 Obtain platform independence
and communicate this
advantage over competing
products
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Recommendations (managerial)
1. Take standardization aspects into account in the R&D phase
2. Hire managers with experience in standardization
3. Seek an early positioning in key markets
4. Be penetration oriented from the outset to use network effects later
5. Select an appropriate technology environment
6. Use communication opportunities for market manipulation
7. Gain promoters and opinion leaders
8. Use sales collaborations
9. Implement an appropriate IP strategy
10. Promote the development of lock-in effects
11. Ensure a suitable growth management
12. Practice intentional innovation
Born Global Standard Establishers
Identification of a new Research Field and Contribution
to Network Theory
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
TELEKOM INNOVATION
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17
BORN GLOBAL STANDARD ESTABLISHERS
IDENTIFICATION OF A NEW RESEARCH FIELD AND
CONTRIBUTION TO NETWORK THEORY
Dr. Simone Wurster 1
Dr. Knut Blind 1, 2, 3
Sebastian Fischer 1, 4
Questions
&
Answers
1Chair
of Innovation Economics, University of Technology Berlin
Chair of Standardization, Rotterdam School of Management
Born
Global
3FraunhoferStandard
InstituteEstablishers
for Open Communication Systems (FOKUS), Berlin
Identification of a new Research Field and Contribution
4Deutsche
to NetworkTelekom
Theory AG, Telekom Innovation Laboratories, Berlin
2Endowed
Dr. Simone Wurster, Dr. Knut Blind, Sebastian Fischer
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