Enablers and hinders of digital-platform firms' internationalization process : Cases from Finnish digital-platform SMEs
Ruokonen, Neea (2021-05-03)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi-fe2021050328486
https://urn.fi/URN:NBN:fi-fe2021050328486
Tiivistelmä
In today’s globalized economies, internationalization remains an important strategic decision for firms. Accordingly, international business scholars have been focusing on examining firms’ internationalization pathways and creating internationalization theories. In addition to globalization, international business is strongly affected by digitalization. The increasing degree of digitalization has given rise to a new type of companies: digital-platform firms (DPFs). DPFs create value by enabling demand and supply sides to interact together. They often operate outside home country’s national borders and have been praised for their fast internationalization process and scalability. However, the research on their internationalization pathways is still rather descriptive and scattered. We still do not know much how DPFs expand internationally, and what are the hinders and enablers in this process.
The theoretical background of the thesis includes relevant research on internationalization and DPFs. This thesis builds on the major internationalization theories, mainly the Uppsala model (Johanson & Vahlne, 1977; Johanson & Vahlne, 2009) and International new venture (McDougall & Oviatt, 1994). Therefore, the objective of the thesis is to examine the internationalization process of digital-platform SMEs. The specific aim of this thesis is to examine how digital platforms enable and/or hinder internationalization of SMEs operating though them. To do so, this thesis bases on an in-depth longitudinal multiple-case study of three internationalizing DPFs from Finland. This thesis contributes to the research on digital-platform SMEs, and provides internationalization studies a unique focus.
Findings of this thesis suggest that even though DPFs are considered to internationalize fast, to distant markets and by simply copy-pasting, they in fact require physical presence and localization. Moreover, this thesis shows that out of three case firms two firms followed the Uppsala Model, entering first close markets. One of the three case firms can be labelled as a born global. Hence, both Uppsala Model and Born global/INV theory are relevant for examining DPF internationalization. Therefore, this thesis sheds light on also the hinders of DPF internationalization, which have been overlooked in prior research.
Acknowledgements: The author of this thesis wants to thank Scandinavian Institute for Administrative Research (SIAR) for the opportunity to conduct this work within the project “Internationalization and business model change: A study of SMEs from sharing economy”. The data access for this thesis was attained through participating in this project. In addition, I wish to thank my supervisor for the guidance on this thesis.
The theoretical background of the thesis includes relevant research on internationalization and DPFs. This thesis builds on the major internationalization theories, mainly the Uppsala model (Johanson & Vahlne, 1977; Johanson & Vahlne, 2009) and International new venture (McDougall & Oviatt, 1994). Therefore, the objective of the thesis is to examine the internationalization process of digital-platform SMEs. The specific aim of this thesis is to examine how digital platforms enable and/or hinder internationalization of SMEs operating though them. To do so, this thesis bases on an in-depth longitudinal multiple-case study of three internationalizing DPFs from Finland. This thesis contributes to the research on digital-platform SMEs, and provides internationalization studies a unique focus.
Findings of this thesis suggest that even though DPFs are considered to internationalize fast, to distant markets and by simply copy-pasting, they in fact require physical presence and localization. Moreover, this thesis shows that out of three case firms two firms followed the Uppsala Model, entering first close markets. One of the three case firms can be labelled as a born global. Hence, both Uppsala Model and Born global/INV theory are relevant for examining DPF internationalization. Therefore, this thesis sheds light on also the hinders of DPF internationalization, which have been overlooked in prior research.
Acknowledgements: The author of this thesis wants to thank Scandinavian Institute for Administrative Research (SIAR) for the opportunity to conduct this work within the project “Internationalization and business model change: A study of SMEs from sharing economy”. The data access for this thesis was attained through participating in this project. In addition, I wish to thank my supervisor for the guidance on this thesis.