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The value creation logic and the internationalisation of internet firms

The value creation logic and the internationalisation of internet firms PurposeThe purpose of the research is to put to a test the belief that the idiosyncratic internationalisation process of Internet firms is homogeneous. The research question is thus, “How does the value creation logic of Internet firms influence their internationalisation process?”.Design/methodology/approachThe authors answer this question using three cases illustrating the internationalisation process of three pure play digital service firms, each falling into one value creation logic.FindingsEach case company had a different approach to internationalisation, explained by a different theory. The firms differed in what their motivation was to internationalise, how they dealt with their liability of foreignness and how they learnt to internationalise. The differences were consistent with the specificities of their value creation. The contribution of this paper is to take the first steps towards linking the way firms create value with their internationalisation. What theory best explains the internationalization of IFs seems contingent on what firms do.Practical implicationsThe message to practitioners is that international strategy not only can but also needs to be different across firms. It needs to be tailored to the concrete way a firm endeavours to generate and capture value. “One strategy fits most” is unlikely to succeed, because different value propositions demand different approaches to realising them.Originality/valueIn extant literature, IFs have been treated as one group, albeit distinct from “offline” firms. This paper proposes that the value creation process of IFs causes them to differ from each other, just as much as they differ from traditional firms. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of International Business and Strategy Emerald Publishing

The value creation logic and the internationalisation of internet firms

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References (62)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
2059-6014
DOI
10.1108/RIBS-02-2016-0007
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of the research is to put to a test the belief that the idiosyncratic internationalisation process of Internet firms is homogeneous. The research question is thus, “How does the value creation logic of Internet firms influence their internationalisation process?”.Design/methodology/approachThe authors answer this question using three cases illustrating the internationalisation process of three pure play digital service firms, each falling into one value creation logic.FindingsEach case company had a different approach to internationalisation, explained by a different theory. The firms differed in what their motivation was to internationalise, how they dealt with their liability of foreignness and how they learnt to internationalise. The differences were consistent with the specificities of their value creation. The contribution of this paper is to take the first steps towards linking the way firms create value with their internationalisation. What theory best explains the internationalization of IFs seems contingent on what firms do.Practical implicationsThe message to practitioners is that international strategy not only can but also needs to be different across firms. It needs to be tailored to the concrete way a firm endeavours to generate and capture value. “One strategy fits most” is unlikely to succeed, because different value propositions demand different approaches to realising them.Originality/valueIn extant literature, IFs have been treated as one group, albeit distinct from “offline” firms. This paper proposes that the value creation process of IFs causes them to differ from each other, just as much as they differ from traditional firms.

Journal

Review of International Business and StrategyEmerald Publishing

Published: Sep 5, 2016

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