How can virtual and augmented reality facilitate international business?

Abstract

AbstractWhile extensive research has explored the internet's role in internationalization, there is limited understanding of how augmented reality (AR) and virtual reality (VR) contribute. Our objective is to address and fill this gap by investigating the roles of AR and VR in international expansion of services and cultural products. The paper addresses facilitators and barriers for the use of these technologies in international business. It argues that advancements in information and communication technologies have played a pivotal role in fostering the integration of AR and VR into global business operations. The study examines the role of these technologies in inward internationalization, particularly in the tourism sector The article also delves into the disintermediation effects of AR and VR compared to Internet‐based platforms, emphasizing their potential to outperform traditional e‐commerce websites. Additionally, the research explores how AR and VR stimulate the internationalization of cultural products, such as concerts and visual art, overcoming geographical constraints. AR and VR technologies are currently in use by a variety of entities, including national tourism authorities, destination management organizations (DMOs), and service providers in the travel and hospitality industries, such as airlines and hotels. They are also employed by producers of cultural products, such as concerts and visual art. The ongoing advancements in these technologies are expected to broaden their existing applications.