Internationalization of online service providers: networks perspective

Abstract

The study examines the internationalization process of online service providers in terms of network. Online service providers (OSPs) depend on digital delivery over the internet, thus, undertaking internationalization faster than traditional firms. The literature describes such phenomenon as ‘born global’ also means that OSPs can overcome geographical borders easily. Network theory emphasized the importance of pre-existing knowledge and network relationships of the entrepreneur both business and social. That drives OSPs to the new markets in more efficient, less risky and faster way. This study also reveals the trust-building aspect of networks as well as the role of strong and weak ties in the internationalization process. The technologically complex nature of online services and the importance of building local network relationships could explain why the case company used a controlled mode of entry. World wide web provides new ways and tools to build relationships, thus giving the chance for individuals to have a larger number of network relationships. Social media such as LinkedIn or Facebook create a base with useful and easily reachable contacts, which could facilitate internationalization of OSPs. All in all, this study contributes to the existed researches and demonstrates the internationalization process of recently launched international start-ups providing services through online channels.