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13 Leveraging Digitality for SME Internationalization and Business Model Innovation

  • H. Bouwman , A. Meroño , M. Heikkila and T. Eriksson
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De Gruyter Handbook of Digital Entrepreneurship
This chapter is in the book De Gruyter Handbook of Digital Entrepreneurship

Abstract

Small and medium-sized enterprises (SMEs) are constantly looking for opportunities for growth, at home and abroad. While changing a few components of a business model (BM) may be enough to realize local growth, international expansion may require more radical BM changes. This paper takes an explorative approach to analyze the implications of the entrepreneurial SME’s internationalization strategy to BM innovation (BMI). Specifically, we consider the role of digital transformation. As such, this study contributes to existing literature on: (1) international management, (2) digitalization, and (3) BMI experimentation and outcome. We carry out a multiple case study using a theoretical sampling approach based on two explanatory factors: (1) the maturity of the SME, that is, established firm versus start-up and (2) the use of IT, that is, web-based channels versus digital platforms. The study shows how internationalization led to different types of changes in the BM. It also shows how digitalization can help in entering into new international markets. Digital platforms provide great potential for internationalization for SMEs but require changes impacting most BM components, such as redesign of value proposition and development of local ecosystems. To date, few studies have looked at IT platforms as a way to enter international markets. Platform- based BMI requires the development of local ecosystems.

Abstract

Small and medium-sized enterprises (SMEs) are constantly looking for opportunities for growth, at home and abroad. While changing a few components of a business model (BM) may be enough to realize local growth, international expansion may require more radical BM changes. This paper takes an explorative approach to analyze the implications of the entrepreneurial SME’s internationalization strategy to BM innovation (BMI). Specifically, we consider the role of digital transformation. As such, this study contributes to existing literature on: (1) international management, (2) digitalization, and (3) BMI experimentation and outcome. We carry out a multiple case study using a theoretical sampling approach based on two explanatory factors: (1) the maturity of the SME, that is, established firm versus start-up and (2) the use of IT, that is, web-based channels versus digital platforms. The study shows how internationalization led to different types of changes in the BM. It also shows how digitalization can help in entering into new international markets. Digital platforms provide great potential for internationalization for SMEs but require changes impacting most BM components, such as redesign of value proposition and development of local ecosystems. To date, few studies have looked at IT platforms as a way to enter international markets. Platform- based BMI requires the development of local ecosystems.

Chapters in this book

  1. Frontmatter I
  2. Contents VII
  3. List of Contributors XI
  4. Introduction 1
  5. Part 1: Entrepreneurship in the Digital Era
  6. 1 Digital Entrepreneurship and Ideology: The Emerging Value System for Entrepreneuring in the Digital Era 19
  7. 2 Artificial Intelligence and Big Data in Entrepreneurship: A New Era Has Begun 43
  8. 3 The Wisdom of Shared Interests: Entrepreneurial Intelligence and Its Development Through Online Maker Communities 61
  9. Part 2: Innovative Entrepreneurship: Adapting to Industry 4.0
  10. 4 Internet of Things (IoT) and Digital Entrepreneurship 97
  11. 5 Entrepreneurship in the FinTech Sector: An Overview of the State of Research 127
  12. 6 Digitalization of Entrepreneurial Finance in China: A Focus on Policy 145
  13. 7 How Do Users of Digital Technologies Become Digital Entrepreneurs?: A Generativity and Socio-material Perspective 163
  14. Part 3: Digital Entrepreneurship and Ecosystems
  15. 8 What’s Your Platform Type? A Framework for Entrepreneurs 179
  16. 9 How Digital Platforms for Inclusive Microbusiness Can Transform Waste Management Workers’ Lives in India 197
  17. 10 The Performance of Entrepreneurial Ecosystems Through the Lens of Digital Transformation: The Case of Antananarivo 213
  18. 11 Digital Business Incubation: An Avatar for the Twenty-First Century Entrepreneur 235
  19. Part 4: Digital Entrepreneurship and Strategy
  20. 12 Highly Digitalized International New Ventures’ First Export Order and Ongoing Capability Development 249
  21. 13 Leveraging Digitality for SME Internationalization and Business Model Innovation 277
  22. 14 Cognitive Determinants of Firm Innovativeness 301
  23. 15 Growing Up in the Digital Era: Creating Digital Assets by Digital New Ventures 327
  24. 16 Instagram and Emergent Business Models 343
  25. Part 5: Student Entrepreneurship in the Digital Era
  26. 17 The Dynamics of Alumni-Student Interactions via Digital Community Mechanisms in Entrepreneurship Education 371
  27. 18 University Entrepreneurial Ecosystems: Exploring Digitalization in University Incubators 395
  28. 19 Entrepreneurial Education: What Are the Challenges for Teaching and Research in the Light of Crises and Digitisation? 411
  29. List of Figures 421
  30. List of Tables 423
  31. About the Editors 425
  32. Index 427
https://doi.org/10.1515/9783110764222-014

Chapters in this book

  1. Frontmatter I
  2. Contents VII
  3. List of Contributors XI
  4. Introduction 1
  5. Part 1: Entrepreneurship in the Digital Era
  6. 1 Digital Entrepreneurship and Ideology: The Emerging Value System for Entrepreneuring in the Digital Era 19
  7. 2 Artificial Intelligence and Big Data in Entrepreneurship: A New Era Has Begun 43
  8. 3 The Wisdom of Shared Interests: Entrepreneurial Intelligence and Its Development Through Online Maker Communities 61
  9. Part 2: Innovative Entrepreneurship: Adapting to Industry 4.0
  10. 4 Internet of Things (IoT) and Digital Entrepreneurship 97
  11. 5 Entrepreneurship in the FinTech Sector: An Overview of the State of Research 127
  12. 6 Digitalization of Entrepreneurial Finance in China: A Focus on Policy 145
  13. 7 How Do Users of Digital Technologies Become Digital Entrepreneurs?: A Generativity and Socio-material Perspective 163
  14. Part 3: Digital Entrepreneurship and Ecosystems
  15. 8 What’s Your Platform Type? A Framework for Entrepreneurs 179
  16. 9 How Digital Platforms for Inclusive Microbusiness Can Transform Waste Management Workers’ Lives in India 197
  17. 10 The Performance of Entrepreneurial Ecosystems Through the Lens of Digital Transformation: The Case of Antananarivo 213
  18. 11 Digital Business Incubation: An Avatar for the Twenty-First Century Entrepreneur 235
  19. Part 4: Digital Entrepreneurship and Strategy
  20. 12 Highly Digitalized International New Ventures’ First Export Order and Ongoing Capability Development 249
  21. 13 Leveraging Digitality for SME Internationalization and Business Model Innovation 277
  22. 14 Cognitive Determinants of Firm Innovativeness 301
  23. 15 Growing Up in the Digital Era: Creating Digital Assets by Digital New Ventures 327
  24. 16 Instagram and Emergent Business Models 343
  25. Part 5: Student Entrepreneurship in the Digital Era
  26. 17 The Dynamics of Alumni-Student Interactions via Digital Community Mechanisms in Entrepreneurship Education 371
  27. 18 University Entrepreneurial Ecosystems: Exploring Digitalization in University Incubators 395
  28. 19 Entrepreneurial Education: What Are the Challenges for Teaching and Research in the Light of Crises and Digitisation? 411
  29. List of Figures 421
  30. List of Tables 423
  31. About the Editors 425
  32. Index 427
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