In the 20th century, the key to a successful global business was being big. Today, however, changes in technology and international politics may be influencing global strategy. Ram Mudambi identifies three primary reasons that demonstrate how innovation is more important than size in the 21st century global economy.

First, new technology allows even very small firms to outsource parts of their business to other countries. Second, new technology makes it easier to leverage good ideas. Last, companies may need to be cautious of scaling up in some countries depending on global politics.