Internationalization of iBusiness Firms: The value of user networks

Presenter: Ankit Surana

PhD Candidate, Macquarie University

Abstract
Traditional IB theories such as the Uppsala model posit that multinational enterprises adopt an incremental approach while internationalizing but the ibusiness firm’s internationalization process is distinct and faster as users co-create content through interactions among themselves to generate value for the firm. Their core product is internet-based and can thus be accessed easily from any country at a lower cost with relatively low risks. As such, the liability of foreignness (LoF) experienced by ibusiness firms is likely to be lower than that for traditional multinational firms, yet the liability of outsidership (LoO) is likely to be higher because of the weak networks and linkages. Therefore, success for an ibusiness firm in a new country entails increasing the network of users to reduce the LoO. Drawing insights from the Uppsala model of internationalization and the social exchange theory and relying on a multiple case study–based approach, this study advances our understanding of digital ibusiness firms by exploring the role of user networks in lowering the liability of outsidership during internationalization. In doing so, the present study contributes to the existing knowledge on digital firm internationalization by understanding how network of users and partners impact the internationalization of ibusiness firms.

Biography
Ankit hails from the beautiful city of lakes, Udaipur, India and is currently pursuing aPhD at Macquarie University. He is an engineer from IIT Delhi, MBA from IIM Calcutta, and Master of Research from Macquarie University. He has received Dean’s commendation for his master’s thesis and awarded International Macquarie University Research Excellence Scholarship. His research interests include internationalization of digital firms. He is focusing on the impact of network, location choice, and mode of entry for the digital firm’s internationalization.