CREATING GLOBAL BUSINESS MODEL FOR KNOWLEDGE-INTENSIVE SMES: THE SMALL TRANSITION COUNTRY CASES
Keywords:Globalization, hi-tech small and medium sized enterprise (HSME), knowledge-market trajectory, business model.
During the past fifteen years several studies have explored the phenomenon of the “born global” of the hi-tech small and medium sized enterprises (HSME). Up to today too little attention has been paid on knowledge related processes and mechanisms, and business models of HSMEs in their market globalization process. The paper aims partly to fulfill the gap exploring “knowledge-market” development trajectories of becoming global of technology- and knowledge-intensive SMEs from small open economy country origin. To open theoretical background of the topic the paper is mapping main processes of global breakthrough as well as “knowledge-market” framework of globalization of HSMEs. Empirical study is based on three cases representing ICT and biotech companies completely or partly of Estonian origin: Regio, Skype and Asper Biotech. The results demonstrate three different globalization trajectories named S-, Γ- and rotated L-curve. All cases are characterized by different knowledge accumulation and learning period preceding their globalization and selection of the following business model: B2B, P2P and B2C. The results of the study provide for “new economy” companies better understanding of strategic options to be followed in internationalization process.