Born Global E-Business Companies -A theoretical model for the internationalization process

Abstract

There are several models aiming to describe the internationalization process of companies. These models are based on traditional companies where distribution and physical products are common features (Bell, McNaughton, Young & Crick, 2003). This implies that these models need to be adjusted in order to fit e-business born global companies. Theoretical entry models for born global companies are still limited (Riapl, Riapl & Knight, 2004). The purpose of this thesis was therefore to develop a theoretical model for e-business born globals and their internationalization process. In order to develop the model, the theoretical models chosen were evaluated and three e-business born global companies were interviewed. The developed model was put together with aspects from the Uppsala Internalization Process Model (Johanson & Vahlne, 1977, 2009), the Waterfall-, Sprinkler-, and Wave Strategy (Lymbersky, 2010), and the Integration Responsiveness Framework (Prahalad & Doz, 1987) because parts of them can all be seen in the internationalization process of born global companies, and they all fit e-business born global companies. The developed model suggests that networks and relationships of the founder determine which markets to enter and is the first step. The second step consists of political-, legal- and social aspects that the company must evaluate. The third step is the most complex part of this model and concerns the decision whether to enter one market or several markets simultaneously and is determined case by case. The last step of the model suggests a combination of localization and standardization when entering new markets. The model will hopefully be applicable for e-business born global companies when entering new markets and create a better understanding how the internationalization process works.