The Role of Absorptive Capability on Born-Global Performance

Abstract

We analyze the superior performance of born-global firms through the dynamic capabilities approach. The performance of these firms is shaped by a capability to garner valuable knowledge, with a view to its assimilation, its combination with existing knowledge and its exploitation. Absorptive capability is the key to the success of born-global firms. The impact of market orientation culture on this dynamic capability is also analyzed. Our research provides empirical evidence that companies are better equipped to promote the launch of new products and services, and new management processes and improvements when they integrate this organizational process into their routines.

KEYWORDS:

• absorptive capability
• born-global firms
• dynamic capabilities
• market orientation