The internationalization process of digital service providers – The role of an intermediary
Sammanfattning: The rise of technological development has changed the conditions for companiesinternationalization process. Today, smaller firms are able to quickly internationalize on a globalscale with the help of digital innovations, which questioning former traditionalinternationalization theories. The amount of service firms is emerging and expanding abroadmore than ever before, especially within the digital service provider sector. They lackgeographical boundaries and are born into a global digital environment. However, operating on aglobal basis does not mean having direct access to local markets. Still, traditional exporting viaforeign intermediaries is recognized as one reliable method when expanding into new markets.The incentives for companies to reach out to intermediaries are primarily the lower financial risktogether with the valuable local market knowledge that the foreign intermediates possess.Nevertheless, internationalization processes today are frequently relying on relevant studiesconducted within the manufacturing industry, creating a theoretical gap between currentinternationalization behaviour and the new area of digital service providers. The findings fromthis study will show how internationalisation unfolds when dealing with intermediaries in theDSP sector and what significant role the intermediaries play. Our contribution to theinternationalization literature concerning intermediaries within the DSP sector includes theirwillingness to internationalize mutually on new markets. Finally, this study illustrates theimportance of access to local networks in order to scale internationally. Since DSP’s have nogeographical rootedness, intermediaries provide DSP’s with access and local knowledge to easierexpand into new markets.
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