Scaling digital and non-digital business models in foreign markets: The case of financial advice industry in the United States

Murad A. Mithani

Journal of World Business, 2023, vol. 58, issue 4

Abstract: This study investigates whether a digital business model helps firms internationalize faster. It tests the hypothesis that a digital business model accelerates the rate of internationalization because economies of scale enabled by digitalization exceed those offered by a non-digital business model. Based on analysis of foreign digital and non-digital entrants in the U.S. financial advice industry, the study found that while digital entrants scaled faster than their non-digital counterparts, a diverse product portfolio harmed digital entrants even when it benefited non-digital entrants. The contrast between scale and scope highlights that digitalization only conditionally benefits internationalization.

Keywords: Internationalization; Scaling; Digitalization; Business model; Multivariate analysis; Longitudinal study (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (5)

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DOI: 10.1016/j.jwb.2023.101457

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