1. PROCESS AND INTENSITY OF INTERNATIONALIZATION _ STUDY OF IT Firms- Evidence from India
Dr. Justin Paul

2. BORN GLOBAL ORIENTATION
‘‘This behavior is particularly prevalent among firms operating in small open economies and in emerging nations, where domestic demand may be limited.’’- Bell et al. (2003: 341),
Lopez, Kundu and Ciravegna (2009) found that most Costarican software companies followed a gradual approach to internationalisation and there are few born global - firms among Costa Rican software firms.

3. MEASURES 1. International orientation of companies
Total income from foreign market as a percentage of total income
Total investment in subsidiaries as a percentage of total investment
Investment for foreign market development _ as per cent of Reserve and surplus invested outside the domestic country
foreign/international subsidiaries as a percentage of total subsidiaries
2. Firm level characteristics
Firm size,
Firm age
International experience

4. CLUSTER ANALYSIS
Hierarchical Clustering method followed by K Means Clustering to analyse the characteristics of variables
Two clusters were extracted

5. FINAL CLUSTER CENTRES Cluster Variables 1 2
Time elapsed to set up first international subsidiary 11 25
Income from foreign mkt
65.64
85.64
Investment in subsidiaries
43.29
33.61
Investment for foreign mkt development
24.24
12.87
International expansion through international subsidiaries
67.40
81.69
Firm size
15272
123006
Firm age 21 45
Cluster 1
16.000 2
3.000
Valid
19.000
Missing
.000

6. CLUSTER ONE
84% of the companies listed on CNX IT sector index were found to be a part of this cluster _ 16 firms
Relatively young smaller companies (21 years on average).
Total income from foreign markets was, on average, a little less than 66%
On average 11 years to expand their business through subsidiaries outside domestic market
Relatively Smaller companies having, on average employees , compared to cluster 2
keenly interested in foreign market and invested, on average 43.29% in international subsidiaries
24.24% on average investment for foreign market development. (as % of total reserves and surplus)

7. CLUSTER TWO
3 companies representing 16% of CNX IT Sector index . Firm size helps them to build brand in foreign market.
More than 85% of their income from outside markets
Set up their first international subsidiaries after a long period from their foundation (25 years on average)
Big companies having, on average employees
Little slower in international market expansion and invested, on average 33.61% in subsidiaries outside domestic market
Strategy of investing relatively less amount for foreign market development by investing, on an average 12.87% of reserve & surplus , but still generating 85% of income from foreign markets

8. CONCLUSION
RO1: To test the existence of born global firms in a fast developing country with open economy ie, India.
The results of cluster analysis confirm the gradual internationalization of CNX IT companies. However, firm age and % of income from foreign market are not correlated.

9. CONCLUSION
RO2: To identify the process of internationalization adopted by Indian IT companies.
Indian IT companies took average 12 years in establishing their first international subsidiary after gaining enough knowledge and expertise in the domestic market.

10. Descriptive Statistics
CONCLUSION
Descriptive Statistics
Mean
Std. Deviation N
Income from foreign mkt 19
Investment in foreign subsidiaries
Investment for foreign mkt development
Business expansion outside domestic country
Firm size
48244
Firm age
25.16
13.078
Time elapsed to set up first international subsidiary
11.95
7.299
RO3: To measure the intensity of internationalization of Indian IT companies.
Indian IT companies of both the clusters were found to possess high level of intensity for internationalization