The ecosystem strategies of born globals: A case study of two Finnish game firms as participants of global business ecosystems

Abstract

Research Goals and Methodology

From inception, Born Globals with scarce resources face substantial pressure to seek for business growth on global markets. Understanding how these companies are able to succeed as participants of global business ecosystems can help new Born Globals to take greater advantage of their external ecosystem environment. Therefore, the purpose of this study is to gain novel insights into the ecosystem strategies of Born Globals and to specify the tools that allow these firms to co-evolve with their constantly changing business ecosystem setting.

This thesis is based in a qualitative multiple-case study involving two Finnish Born Global firms that operate in game industry. The empirical material was analysed with help of the thematic network tool and the findings were compared with previous literature.

Findings

As the key findings of this study, business ecosystems are the fundamental enablers of the business of Born Globals but also govern the strategies of these firms to a large extent. Born Globals correspond to ecosystem niche players for which the emergence of digital ecosystems has opened up groundbreaking opportunities in recent years.

Internal capabilities as well as the personal networks of employees play a key role in the ecosystem strategy of Born Globals as they can significantly improve the firm's strategic position in the business ecosystem setting. Furthermore, the strategy of Born Globals features active seek of new opportunities, variation and high degrees of flexibility, which help these companies to manage risks that originate from the external environment. In order to co-evolve with their business ecosystems, Born Globals perform both reactive and proactive actions. In addition, they favor relatively simple strategic rules that allow operational efficiency under the rapidly evolving business conditions.

The ecosystem strategy of Born Globals was found to evolve towards a more structured approach along with the firm growth and maturity. Furthermore, the empirical evidence indicated that their strategy may turn to emphasize stricter focus as well as more deliberate risk-taking over time. This is because Born Globals become more capable to manage their external dependencies once their operations get more stabilized.