Social Capital and its Impact on Born Transnational Firms

Recent literature on international entrepreneurship hints toward an increasing number of firms engaging in business activities across national borders from or near their inception. Employing the transnational organization model to cope with hypercompetitive markets, the so-called born transnational firms represent a rather new prototype of such rapidly internationalizing firms and appear to be prime candidates of integrating value-added processes in multiple countries in a timely manner. Martin Krikken aims at shedding light on the nature of this distinct and under-researched type of international start-up by assessing the impact of social capital on its corporate flexibility. He illuminates how born transnational firms utilize networks of relationships to increase their capacity to adapt to environmental change.