Abstract
Research background: Through the ongoing trend of digitalization, organizations competing in international markets are getting more exposed to different technology related risks. Globalization and technology support enabled small tech-based companies to scale and expand their business. On the other hand, this has also led to a significant rise of different types of threats. Companies engaged in the process of internalization are more exposed to digital risks than companies competing on the local market. In order to help their companies to manage digital risks, governments use relevant institutions and resources. However, many organizations still largely depend on their own capabilities. A growing number of organizations uses artificial intelligence in business models as a new type of response to digital risks. Artificial intelligence could be the missing link that will help connect organizational and government resources for successful management of digital risks. Purpose of the article: To shed more light on this understudied issue, we conducted a literature review on the use of artificial intelligence in business models as a tool for managing digital risks on the global market. Methods: Literature review. Findings & Value added: We analysed the key determinants of artificial intelligence, their use in business models, and the way it can help organizations manage digital risks. Literature review summarizes the most important research on the topic and proposes new avenues for future research.
Highlights
The process of digital transformation has made a significant impact on how companies build a strategy to enter international markets
The aim of this study is to identify digital risks companies are facing on international markets, and the possibilities of artificial intelligence (AI) technology that help manage these risks
Digital risks are becoming increasingly important issue for organizations competing in the global market
Summary
The process of digital transformation has made a significant impact on how companies build a strategy to enter international markets. When creating an internalization strategy, companies need to consider the (de)regulation of international markets, and the potential digital risks that may occur on that market as well. These digital risks could be initiated by competitors, individuals or even foreign governments. They were characterized as industrial espionage, but nowadays they are more sophisticated, and are classified as security breaches. Companies struggle to find a way of achieving a competitive advantage on the global market against these risks. Some companies have started to innovate their business models by implementing artificial intelligence (AI) solutions
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