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Explaining the Internationalization of iBusiness Firms

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Abstract

Information and communication technologies have given rise to a new type of firm, the ibusiness firm. These firms offer a platform that allows users to interact with each other and generate value through user co-creation of content. Because of this, ibusiness firms face different challenges when they internationalize compared with traditional firms, even those online. In this article we extend existing internationalization theory to encompass this new type of organization. We theorize that because ibusiness firms produce value through the creation and coordination of a network of users, these firms tend to suffer greater liabilities of outsidership when expanding abroad and therefore concentrate on network and diffusion-based user adoption processes as they internationalize. Based on a multi-case investigation of a sample of ibusiness firms, we develop new theory and testable hypotheses. Thus, we make an important contribution by expanding internationalization theory to a new set of firms.

Journal of International Business Studies (2016) 47, 513–534. https://doi.org/10.1057/jibs.2015.20

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Notes

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    The authors wish to thank the editor for making this point.

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Authors and Affiliations

  1. King’s College London, London, UK

    Keith D. Brouthers

  2. Johannes Gutenberg Universität Mainz, Mainz, Germany

    Kim Dung Geisser & Franz Rothlauf

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  1. Keith D. Brouthers
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  2. Kim Dung Geisser
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Editors and Affiliations

  1. Rotman School of Management, University of Toronto, Toronto, ON, Canada

    A. Rebecca Reuber

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Accepted by John Cantwell, Editor-in-Chief, 15 June 2015. This article has been with the authors for three revisions.

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Brouthers, K.D., Geisser, K.D., Rothlauf, F. (2018). Explaining the Internationalization of iBusiness Firms. In: Reuber, A. (eds) International Entrepreneurship. JIBS Special Collections. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-74228-1_7

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