From failure to strategy: How unsuccessful expansions inform routine development and future expansion for the born global firm - A single case study of Axel Arigato

Abstract

Existing research in international business has long explored how firms internationalize and learn from their experiences. However, different types of firms internationalize differently and there is also a notable gap and limited research in studying the role of failures in learning experiences of internationalizing firms. This study sought to address this gap by examining how a born global firm learns from its past experiences and develops and adapts its routines for future internationalization, taking into consideration the role of failures in these learnings. Theoretical analysis on internationalization theories, born-globals, organizational learning, and routines was performed leading to development of a conceptual framework. A qualitative single case study was conducted on a growing born-global company with failure experience, through ten semi-structured interviews with employees involved in the firm's internationalization activities. Theoretical framework guided data collected and subsequent analysis inspired by Gioia Method. The findings showed the firm gradually accumulated knowledge from its past experience which influenced development and application of routines where failure experiences, a crucial source of experiential knowledge, stimulated change in routines. The findings align with existing internationalization research and also provide a valuable addition to the field by emphasizing the critical catalyst role of failures in the internationalization process.