Service Markets: Digital Business Models and International Expansion

Robert Wentrup () and Patrik Ström
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Robert Wentrup: University of Gothenburg
Patrik Ström: University of Gothenburg

Chapter 7 in Digital Business Models, 2019, pp 169-199 from Springer

Abstract: Abstract Service markets are both global and local. Firms develop strengths in the domestic market that can be exploited abroad, but we also see firms that from the very start work with international business models. The markets for these service firms are very different and the underlying competitive advantages that can be exploited can change rapidly. Through digitalization and the possibility to provide highly value-added services through the Internet, the spatial dynamics of these markets are volatile. This chapter discusses how firms can work over geographical distances and what makes a digital business model internationally scalable. Whereas the Internet has paved the way for rapid international expansion for firms such as Google and Facebook, most digital business face difficulties in expanding across borders. By analyzing the spatial logic for digital business models and by presenting an in-depth case study of a Swedish firm, Truecaller, this chapter analyzes the determinants for international scalability for firms with digital business models, and contributes new theoretical insights and practical advice for business managers seeking to internationalize their digital businesses.

Keywords: Computer screen internationalization; Digital business models; Internationalization; Online- offline asymmetry; Service industry; Scalability (search for similar items in EconPapers)
Date: 2019
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DOI: 10.1007/978-3-319-96902-2_7

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