Born-Again Global Firms: Case of Small Sake Breweries in Japan

Building on the work of Johanson and Vahlne (1977) and Bell et al. (2001), this paper focuses on “Born-again Global Firms” (BaGFs), specifically within the Japanese sake industry. Unlike “Born Global Firms” that internationalize rapidly post-establishment, BaGFs undergo internationalization after a long domestic operation period. In conventional prior research, this transformation has commonly been attributed to “incidents” such as changes of ownership or the internationalization of clients, or it has been driven by companies with advanced technology. However, this study proposes a new classification of BaGF that is independent of these factors. Through case studies, it highlights how traditional culture can fuel global expansion, suggesting industries with strong cultural ties may be more predisposed to becoming BaGFs. Japan’s sake industry, facing over 50 years of declining domestic demand, initiated modest internationalization through exports in the 1980-90 s and saw a surge in overseas demand from 2013. The study of these BaGFs aims to enrich our comprehension of their characteristics, conditions, and progression into becoming multinational corporations.