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Service Markets: Digital Business Models and International Expansion

In: Digital Business Models

Author

Listed:
  • Robert Wentrup

    (University of Gothenburg)

  • Patrik Ström

    (University of Gothenburg)

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.

Suggested Citation

  • Robert Wentrup & Patrik Ström, 2019. "Service Markets: Digital Business Models and International Expansion," Springer Books, in: Annabeth Aagaard (ed.), Digital Business Models, chapter 7, pages 169-199, Springer.
    • Handle: RePEc:spr:sprchp:978-3-319-96902-2_7
    DOI: 10.1007/978-3-319-96902-2_7
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    Cited by:

    1. Rong, Ke & Kang, Zhengyao & Williamson, Peter J., 2022. "Liability of ecosystem integration and internationalisation of digital firms," Journal of International Management, Elsevier, vol. 28(4).
    2. Schäfer, Fabian & Gebauer, Heiko & Gröger, Christoph & Gassmann, Oliver & Wortmann, Felix, 2023. "Data-driven business and data privacy: Challenges and measures for product-based companies," Business Horizons, Elsevier, vol. 66(4), pages 493-504.

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