The Effects of Platform Business Models on Internationalisation Outcomes and Speed

Abstract

Despite platform business models (PBMs) being widely discussed by practitioners and assume tremendous opportunities for creating and entering new markets, they have been a rare topic on the agenda of international business research. Hence, knowledge on how PBMs are adapted to internationalization and what effects they have on it is still forthcoming. This paper conceptualizes the effects of PBMs on internationalization outcomes and speed. We propose that they positively affect the breadth of internationalization, foreign sales, the speed of initial market entry, and post-internationalization speed, contingent upon establishing an extensive user network. Also, they negatively affect foreign assets. This study contributes to the emerging research at the frontier of business models and internationalization, and suggests implications for further research.