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Cited by 420Digital Platforms and EconomicsInternational Business and FDIInnovation and Knowledge Management

Platforms without borders? The international strategies of digital platform firms

Stallkamp, Maximilian, Schotter, Andreas P. J.·2021·Global Strategy Journal
DOI 10.1002/gsj.1336
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Abstract

Research Summary : Digitalization has enabled firms with so‐called platform business models to emerge in many sectors of the economy. By facilitating transactions between different groups of users (e.g., buyers and sellers), platform firms are disrupting industries around the world. However, little is known about the international strategies of platform firms, as research has mostly examined platforms in single‐country contexts. We address this gap by integrating insights from platform research in strategy and economics—specifically the notion of network externalities—with internalization theory. We extend the existing typology of network externalities by distinguishing between within‐country and cross‐country network externalities. We derive testable propositions regarding the foreign entry modes of platform firms, their international strategic posture (multidomestic vs. globally integrated), as well as foreign market selection criteria and market exit. Managerial Summary : Many companies in the digital economy operate platform business models, which create value by connecting different groups of users, such as buyers and sellers. We examine how network externalities—the notion that a platform becomes more valuable to each user as more users join—influence the international expansion of these firms. We show that it is important to consider the geographic scope of network externalities, that is, whether network externalities operate across national borders or whether platform firms have to create separate user networks in each country. The distinction between within‐country and cross‐country network externalities affects key internationalization decisions, such as how to enter foreign markets, whether to pursue multidomestic or global strategies, how to select foreign markets, and when to exit from a foreign market.

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Crossref · 10.1002/gsj.1336

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  • Platform MNEs facilitate connectedness among different groups of actors around the world in fundamentally new ways.

    “On the one hand, platform MNEs facilitate connectedness among different groups of actors around the world in fundamentally new ways (Coviello et al., 2017;Stallkamp & Schotter, 2019).”

    From Global value chains: A review of the multi-disciplinary literature (2020) · cites this paper as Stallkamp & Schotter, 2019

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Authors
Stallkamp, M., & Schotter, A. P. J.
Affiliations
  • Virginia Tech (US)
  • Western University (CA)
Corresponding author
Stallkamp, Maximilian
ORCID
Venue
Global Strategy Journal
Publisher
Wiley
Published
2019-01-28
Volume
11
Issue
1
Pages
58-80
ISSN
  • 2042-5791 (ISSN-L)
  • 2042-5805
DOI
10.1002/gsj.1336
OpenAlex
W2910840469
Cited by
420
References
101
Citations by year
2026: 77 · 2025: 74 · 2024: 87 · 2023: 58 · 2022: 58 · 2021: 39 · 2020: 16 · 2019: 11
FWCI
47.63
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor)
Locations
Global Strategy Journal (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Digital Platforms and Economics
  • Social Sciences › Business, Management and Accounting › Strategy and Management › International Business and FDI
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Innovation and Knowledge Management
Keywords
digital platforms, platform business models, network effects, internationalization, foreign market entry modes, multidomestic strategy, international market selection, market exit, digital economy, international strategy

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