Explaining Internet Companies’ Internationalization: An Approach of Competences

Abstract

Why do Internet companies internationalize? Why is its internationalization unique? By discussing companies with fully digital products, this article answers these questions and provides an opportunity to examine the strength of earlier findings in International Entrepreneurship research, which has been carried out largely in high tech ventures exporting physical products. In our view, capabilities enabling Internet companies’ internationalization may differ from those of physical product-based ventures. The primary objective of this paper is to uncover Internet companies’ competence for internationalization. By adopting an inductive multi-case approach, we propose that International Digital Competence (IDC) reveals four main capabilities: cross-cultural programming skills, global virtual networks, cross-border digital monetizing adaptability, and international business model reconfiguration. This competence is a pre-requisite to the internationalization of Internet companies. We also conceived that the digital company’s strategy to achieve non-equity investments is moderated by its entrepreneur’s international orientation.