Abstract

This paper provides an improved understanding of the internationalisation speed of innovation in a digital context. It integrates virtual distance into the previous Cultural, Administrative, Geographic, and Economic (CAGE) distance framework. By tracking the penetration in 43 target countries of a unique sample of 102 mobile apps available on Apple's App Store, cultural and economic distances still hinder the penetration speed of digital innovation in a focal country. However, geographic and administrative ones no longer have a significant effect. More importantly, distance does not always act as a barrier, with high virtual spaces promoting international penetration. Therefore, digital innovation developers may overcome challenges presented by cross-national distances by resorting to the global user network effect.

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