The Influence of Country-of-Origin (COO)Effects in Startups from Emerging Economiesin their Internationalization Process : A case study of Brazil's market and startups

Abstract: The Country-of-Origin (COO) is an important factor to be considered for startup firms in their international expansion and development. This exploratory study focuses on the influence and impacts of the COO on Born Global startups from emerging economies in their internationalization process. The research provides a general picture about the theories connected to the COO and its impacts, as well as the different contexts which are the basis for the COO construct, such as the historical, economic and international contexts. The study is based on three case companies from Brazil, founded around the year of 2010. Besides understanding the COO effects faced by Global Born firms in international markets, this study also analyzes how these companies deal with this matter when implementing their internationalization plans. Moreover, the study also assesses the Global Born firms’ internationalization path, as well as their main motivators and influential factors. The findings about the influence of COO affects in Born Global startups from emerging markets are displayed in two phases: (1) the initial stage, when consumers still have little knowledge and experience with the products or services offered by the startups, therefore relying more on first perceptions such as the COO, and (2) a secondary stage, in which the companies have already interacted in the international market, and the companies and their products and services are already known by the market in some extent. This study’s findings suggest that the COO affects the startups in the first moments of their internationalization process, however the COO influences decreases as the startups develop, interact and exploit the new markets. The findings are presented from both a within-case perspective and a cross-case perspective. Furthermore, discussion of the findings, implications and suggestions for further research are provided.