This article is more theoretical than others. The aim of paper is to inspect “Uppsala Model”, economic theory of firm’s internationalization, with some sample of internet companies.
In “Uppsala Model”, firms are assumed to internationalize after building experimental knowledge in their home market. However, especially in internet business, firms often internationalize without getting home market knowledge. This thesis explains the reason.
The reasons are characteristic of Internet and equipment of investing market. Characteristic of Internet means cost of not internationalization. Industry of internet service has large first-mover advantage, and no leading company to imitate because of freshness of market. This makes company to expand their business as soon as possible. Moreover, investor or venture capital supply firms the capital needed to internationalize. In other words, internet firms internationalize not voluntary, but compulsory.
I think business changes “money game” by internet, but ironically, this brings us a lot more conveniences than before.
URL:http://www.livinginternet.com/i/iw_mgmt.htm
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