Glodomestication – IT Works both Ways. The linkage of Indian IT INVs’ internationalization process and creation of a competitive advantage

Abstract

During the past years, the phenomenon of International New Ventures (INV) from emerging markets has been increasingly acknowledged where globalization has facilitated their internationalization into new foreign markets. As a result, this has led to the creation of a more dynamic and global market place, which has increased the need for firms to distinguish themselves through their competitive advantage. Yet, despite the significant presence of Indian Information Technology (IT) INVs, these have not received equal attention in research. Scholars have focused on firms’ internationalization process or creation of competitive advantage respectively, thus making previous studies insufficient to independently explain the linkage in this novel context seen from an Indian perspective. This study aims to examine the linkage between the internationalization process and the creation of a competitive advantage and explain how the linkage has evolved over time by studying three Indian IT INVs; I-exceed, Technoforte, and Sapience Analytics. The case firms have been examined based on six in-depth interviews held with founders and senior managers. The empirical findings of each case firm have been analyzed in relation to a theoretical framework based on literature of the internationalization process and the resource management of the firm, followed by a comprehensive cross-comparison of all cases. The key findings propose that the linkage between the internationalization process and the creation of a competitive advantage is an interrelated process of two mutually dependent phenomena, where the correlation and development of them are influenced by particularly three factors: founders’ experience, industry knowledge, and network through global Multinational Corporation (MNC) customers. Further, the findings suggest that the development of the linkage over time follows an interlinked manner through three distinct phases; Identification and Accumulation of Resources and Capabilities, INV Growth through Glodomestication to Create the Competitive Advantage, and Maturity and Stability for Continued Glodomestication to Sustain the Competitive Advantage.