The Effects of Platform Business Models on Internationalisation Outcomes and Speed

Abstract

Digitalisation, the Internet, and computer-based technologies have enabled firms to create new ways of communicating with customers and connecting them with each other around the globe. Platform Business Models (PBMs) are discussed in close connection to the concepts of innovation, new market decisions, having a quick reach to worldwide markets, and new market opportunities. The ‘business model’ notion appeared at the advent of the digital era. Business models for electronic markets initially served as tools for explaining the logic of a firm’s business processes on the Internet. Business models based on Internet-, electronic-, and computer-based technologies are not new in the literature. The key idea of PBMs is to provide connectivity between market supply and demand and in doing so to create new marketplaces and ecosystems where firms do not own the means of production and physical assets and via creating means of connection facilitating faster and less costly transactions between producers and end-users.