Born-Globals and Globalization Strategy: A multiple case study on entry-mode selection in the advertising industry

Tsvetana Stoyanova

Student thesis: Master thesis


The purpose of the research is to investigate the factors that affect the choice of globalization strategy by born-global firms in the advertising industry. Based on applying a multiple case empirical approach to a combination of theories, the thesis explores how the behavior of two export/import ventures can be explained in regard to their choice of foreign entry-mode. For that reason, the project analyzes and evaluates the position of Pixelete Labs and Artventure ApS with respect to ten elements of their ownership advantages, location conditions and internalization incentives. The main findings suggest that firm size, strategic orientation, competitiveness and unique resources can act as inhibitors for becoming a multinational enterprise. That means limited resources, conservative perceptions of foreign markets, transferability of special capabilities and adaptation can explain low commitment forms of entry. In contrast to expectations, high market potential, low investment risks, and a decent level of multinational experience do not seem to increase the desire to make green-field investments abroad. Differential potential of the firms and contractual risks in target locations appear to affect the choice of globalization strategy as secondary considerations, whereas networks do not seem to stimulate cooperative forms of entry opposite to expectations.

EducationsMSc in Applied Economics and Finance, (Graduate Programme) Final Thesis
Publication date2014
Number of pages115