De-internationalization effects and the moderator role of distances: a longitudinal study on High-Tech Born Global Firms

This study investigates the de-internationalization process of born global (BG) firms, specifically examining how a reduction in geographic scope affects the international scale in the remaining foreign markets. Our research addresses two key questions: (1) Does the reduction of a BG's scope impact its scale in remaining foreign countries? (2) How do various distances (psychic, market size, and technological) moderate this relationship? Drawing on a sample of BGs from the Italian high-tech cluster "Tiburtina Valley," we conducted a longitudinal analysis over three periods: 2010, 2015, and 2021. Our findings suggest that a decrease in geographic scope can positively impact the scale of remaining international activities, as measured by export value and the number of foreign customers. This phenomenon is driven by the efficient allocation of resources, allowing BGs to 172 concentrate on fewer but more profitable markets. Furthermore, the study reveals that psychic, market size, and technological distances play significant moderating roles. The positive effects of de-internationalization strategy on the international scale is lower when the remaining countries are more psychic and technological distant. This research contributes to the literature on BGs by highlighting the non-linear and intermittent nature of their internationalization process, challenging the assumption of its