Born digitals: Thoughts on their internationalization and a research agenda

Monaghan, Sinéad; Tippmann, Esther; Coviello, Nicole

doi:10.1057/s41267-019-00290-0

Cited by 180 publications

(172 citation statements)

References 45 publications

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“…Examples such as Supercell draw research attention to critical demand-side location advantages that digital firms—defined as firms that leverage digital infrastructure to develop and transmit digital technologies worldwide (Monaghan, Tippmann, and Coviello 2020)—can reap by selectively interacting with users in particular lead markets to facilitate internationalization of their technologies. Location advantage refers to the benefits firms in some countries receive compared with firms operating elsewhere.…”

mentioning

confidence: 99%

Revisiting Location in a Digital Age: How Can Lead Markets Accelerate the Internationalization of Mobile Apps?

Siddiqui¹,

Li²,

Priem³

2020

Journal of International Marketing

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Firms strategically expand to countries that offer important location advantages. Yet, for digital firms, which can instantly release their technologies worldwide, it is unclear whether a focus on specific locations can still provide strategic advantages. The authors argue that digital firms reap critical demand-side location advantages for the internationalization of their technologies by strategically interacting with users in lead markets that exhibit either high within-country demand heterogeneity or preference overlaps with several other countries. Simply penetrating a lead market is not enough, however, as both demand-side and supply-side factors influence the digital firm’s potential to take advantage of lead markets. On the demand side, a digital firm should avoid focusing on paying users or acquiring light users. On the supply side, the digital firm must deploy adequate technological and marketing capabilities to benefit from user interactions in lead markets. Thus, the authors link demand-side opportunities and supply-side firm capabilities to develop nuanced theory on how digital firms can spur international expansion. They find empirical support for their arguments by analyzing a large multicounty database of mobile apps in Apple’s App Store.

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mentioning

confidence: 99%

Revisiting Location in a Digital Age: How Can Lead Markets Accelerate the Internationalization of Mobile Apps?

Siddiqui¹,

Li²,

Priem³

2020

Journal of International Marketing

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“…As a consequence, managing international activity, digital presence signals and investment signals at the same time is challenging for new firms. A better understanding of firm digital presence and investment signals in an international network context is required to learn about digital entrepreneurship (Nambisan, 2017) and internationalisation (Monaghan et al, 2020;Ojala et al, 2018) by exploring how digital artefacts influence internationalisation.…”

Section: Digital Changes In Internationalisation Processesmentioning

confidence: 99%

“…Digital developments and international entrepreneurship are increasingly related to ibusiness platforms (Brouthers et al, 2016;Chen et al, 2019). Monaghan et al (2020) explain that born digital firms thrive internationally through stakeholder engagement, automation, networking, flexibility and scalability. Ibusiness platforms, however, refer to digital networks for users to interact and co-create as they expand internationally (Brouthers et al, 2016).…”

Section: Digital Changes In Internationalisation Processesmentioning

confidence: 99%

The role of digital presence and investment network signals on the internationalisation of small firms

Kromidha

Robson

2020

International Small Business Journal

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This article proposes a network signalling theory approach to analyse small firm internationalisation in the digital economy. We use a data set of 4446 small- and medium-sized firms extracted from Funderbeam and logit regression models to test five hypotheses about internationalisation. Exploring a firm’s digital presence indicates that the number of social media followers is a better indicator of internationalisation than website traffic, highlighting the importance of engagement signals in the digital space. Investment signals such as the time and size of funding are also positively related to internationalisation but surprisingly, not the number of investors, suggesting that more focused investment strategies work better in the international context. To complement our international network signalling approach, controlling for firm factors such as age and size and environmental factors such as competition and industry provides a more detailed analysis. Our contribution lies in extending signalling theory in the context of international networks using a novel and extensive data set.

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“…Such a perspective of global innovation has also led to acknowledging the role of MNEs (and their subsidiaries) from emerging economies in innovation as well as the potential for innovation/knowledge flows in both directions -from advanced economies to developing economies and in the reverse direction (e.g., D'Agostino & Santangelo, 2012;Govindarajan & Ramamurti, 2011;Von Zedtwitz et al, 2015). However, despite the adoption of such a contemporary view of innovation -one that incorporates a global ecosystem or network perspective and the role of firms in both established and emerging economies -IB research has, until recently, placed limited focus on digital technologies and digital assets that increasingly form the primary ingredient for innovation (notable exceptions include Banalieva & Dhanaraj, 2019;Li et al, 2019;Monaghan et al, 2020;Nambisan et al, 2019;Shaheer & Li, 2020;Stallkamp & Schotter, 2020). Admittedly, digitisation is a relatively new phenomenon in international business, and as such, the lack of attention to the nature and role of digital assets is understandable.…”

Section: Introductionmentioning

confidence: 99%

Digital innovation and international business

Nambisan

2020

Innovation

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Digitisation has opened up powerful new ways for multinational enterprises (MNEs) to connect with global markets, resources and partners and to pursue innovation in foreign markets. While the unique characteristics of digital technologies and digital assets embody an expansive and promising global landscape for innovation, MNEs' success in pursuing such digital innovation will also be shaped by the nature and extent of localization forces prevalent in different foreign markets, an issue that has received limited attention in both digital innovation and international business literatures. In this short essay, I highlight this gap and call for the study of digital innovation in the international business context by bringing together ideas, theories and concepts from both areas. I draw on and combine two perspectives-one drawn from the innovation literature (digital innovation as recombinant innovation involving digital assets) and the other from the international business literature (the international business context as being defined by national policies and regulations, infrastructure and culture) and suggest several promising themes and questions for future research in this area, specifically relating to how globalization/localization forces facilitate/hinder MNEs' global digital innovation efforts. I hope the call made here will be answered by scholars from both fields and lead to insights that enrich both theory and practice related to MNE innovation in today's rapidly growing digital economy.

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Born digitals: Thoughts on their internationalization and a research agenda

Cited by 180 publications

References 45 publications

Revisiting Location in a Digital Age: How Can Lead Markets Accelerate the Internationalization of Mobile Apps?

Revisiting Location in a Digital Age: How Can Lead Markets Accelerate the Internationalization of Mobile Apps?

The role of digital presence and investment network signals on the internationalisation of small firms

Digital innovation and international business

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