Internationalization of born globals: A business model perspective of an internet-based service company

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School of Business | Master's thesis

Date

2012

Major/Subject

International Business
Kansainvälinen liiketoiminta

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Degree programme

Language

en

Pages

101

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Abstract

Abstract Objectives of Research This study focuses in exploring how Internet-based Service Born Globals (ISBGs) evolve through their internationalization process, particularly during their early stages of internationalization. Special focus is placed in the main business model changes experienced by ISBGs during their internationalization stages and the main challenges driving these changes. The suitability of a theoretical framework developed with constructs from three main streams of research – Born Globals, Service Business and Entrepreneurship – is evaluated. Method of Research The empirical research is based on an in-depth, longitudinal, single case study of an Internetbased Service Born Global company from Finland. The study uses an analytical framework involving three main research streams, developed to enable a holistic perspective of the internationalization process. Findings and Conclusions ISBGs are subject to continuous adjustment of their business model components in their early stages of development, the most significant taking place once the company starts entering foreign markets. The main components requiring adjustments in the early stages of internationalization were the customer segments, channels, customer relationships, and the value proposition. The main factors driving the changes of the business model components were making invalid market assumptions about the customer segment, the lack of product/service-market fit, and the servicespecific considerations related to the cultural and technical barriers. The seven development stages of ISBGs – R&D, Domestic, Entry, Starting, Development, Growth, Mature – and the four growth phases – Introductory, Commercialization and foreign entries, Rapid growth and foreign expansion, and Rationalization and foreign maturity – were found valuable models to understand the state and evolution of BGs. The use of a business model perspective to study the evolution of ISBGs was found a suitable approach due to its holistic perspective and its ability to represent the core components of the company and its inter-dependencies. Keywords Born Globals, International New Ventures, Global Start-ups, Service Born Globals, Internet-based Services, Internationalization of Services, Business Models, Business Models Components, Development Stages, Growth Phases

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Keywords

born globals, international new ventures, global start-ups, service born globals, internet-based services, internationalization of services, business models, business models components, development stages, growth phases

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