Digitalization’S Impact on Lean Global, Start-Up Firms’ Internationalization Speed
Digitalization’S Impact on Lean Global, Start-Up Firms’ Internationalization Speed

Author(s): Michael Neubert
Subject(s): Social Sciences, Economy
Published by: Vysoká škola ekonomická v Praze
Keywords: International business; international management; big data analytics; market entry decisions; international entrepreneurship
Summary/Abstract: Purpose:This paper aims to understand the impact of digitalization on international, lean, global start-ups’ speeds (LGS). It closes a gap in the literature by defining better the benefits and the impact of digitalization on the speed of internationalization and models regarding the international market evaluation process. Furthermore, it outlines why and how digitalization is important throughout the internationalization process, and it expands the study of international management and business by including a broader and deeper range of digitalization aspects than is normally found in the international management and business literature. Design/Methodology/Approach:The paper opted for a qualitative multiple case-study research design using different sources of evidence, including 51 responses from senior managers of lean, global, start-up firms. The case-study firms were selected using a simple random sampling method. The data were collected in September and October 2017, and analyzed using grounded theory to develop categories and to understand consistencies and differences. The revised Uppsala internationalization process model was used as the theoretical framework to analyze the impact of digitalization on the speed of LGS internationalization. Findings:The paper provides empirical insights about the impact of digitalization on the speed of LGS internationalization. Digitalization allows LGS to increase decision-making efficiency and to optimize international market evaluation strategies and processes. It suggests that international managers act as “integrating forces” on several levels: by applying a disciplined and structured internationalization process with regular reviews, by mediating between local market realities and corporate goals, understanding the limits and benefits of digitalization, and optimizing decision-making. Research/Practical Implications:The findings are relevant for researchers, scholars, managers, and policy makers who support activities that promote digital engagement, to understand better the impact of digitalization on the speed of LGS internationalization, to increase the efficiency of decision-making processes, and to optimize international market evaluation strategies, processes, training, and (financial) support projects. Future scholarly work might also include quantitative assessments of subject-matter experts’ (SMEs’) perceptions, whose qualitative data can provide greater clarification of the study’s statistical significance or replicate it with other SME from different industries and markets. Originality/Value:This paper fulfills an identified need and a call for research to study the impact of digitalization on the speed of LGS internationalization.

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