Drivers and Effects of IT Capability in 'Born-Global' Firms: A Cross-National Study

Past research acknowledges that IT capability enhances firm performance. However, studies have focused primarily on large firms, and have seldom explored why firms develop IT capability, leaving a void in the understanding of the role of IT capability in SMEs. This study, using a survey methodology, attempts to address this void by examining the effect of relevant environmental and firm-level factors on IT capability, and the effect of IT capability on the international performance of Chinese and US born-global firms, a special breed of export-focused SMEs. Results support most of the hypotheses. Interestingly, the results of the comparison between Chinese and US bornglobals are consistent with the “convergence” perspective. The study contributes by: 1) providing clear evidence that IT does matter in born-global firms, 2) highlighting the specific types of IT capability that born-globals should invest in, and 3) pointing to factors that drive IT capability development in such firms.