Internationalization, Digitalization, and Exponential Growth

Gaston Fornes and Maria Altamira
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Gaston Fornes: University of Bristol
Maria Altamira: UBI Business School

Chapter 3 in Digitalization, Technology and Global Business, 2023, pp 29-51 from Springer

Abstract: Abstract Building on the previous section, chapter 3 critically analyzes the three most relevant internationalization theories (Uppsala model, OLI and LLL) and assesses whether they can still explain the international expansion of firms in the new digital era. It also discusses how digitalization affects the international expansion of non-digital-born firms. Digitalization and international expansion are still an emerging area of research but it seems evident from the analysis that there are opportunities for more explicit theoretical links between digitalization and international expansion. The discussion section in the chapter shows that the adoption of digital technologies positively impacts the internationalization process of firms. Digital technologies facilitate the development of internationalization strategies, contributing to firms’ accelerated and/or exponential growth. Consequently, it seems that mainstream theories are still valid to explain the international expansion of companies in an increasing digitalized environment, but that some adaptations and new variables are needed to fully explain the impact of digitalization. Examples and cases are presented with a focus on international trade of services and its exponential growth in the past decade, and how this phenomenon may impact internationalization theories.

Keywords: Uppsala Model; OLI; LLL; Non-digital firms; Digitalization; Exponential growth; Liability of foreignness (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-33111-4_3

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DOI: 10.1007/978-3-031-33111-4_3

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