International Opportunity Discovery of Born Global Firms: The Role of Institutions

The study examines home-country institutions as contextual factors influencing the process of international opportunity discovery in the case of born global companies embedded in two different institutional contexts: an emerging economy, China, and a developed country, Italy. Drawing on the opportunity-based view and institutional theory, the study explores and draws comparative insights into how home country institutions of born global firms can influence the international opportunity discovery process. Using a case study approach, we examine the international opportunity discovery process of six born global firms from China and Italy and show how home-country institutions can influence the process of developing cross-border opportunities in born global firms. The findings reveal that home institutions played an influential, yet, differentiating role on the international opportunity discovery processes of the Chinese and Italian firms. The institutional context of the Italian firms shaped their opportunity discoveries through product innovation, whereas their Chinese counterparts discovered opportunities mainly through networks embedded their home institutional context."