Internationalization of Traditional and E-Business in Finance: A Comparative Study

Abstract

The phenomenon of internationalization has been extensively investigated, leading to the formulation of frameworks to encapsulate its fundamental principles. However, recent technological innovations have dismantled previously unassailable barriers. This same technological progress has increased digitized enterprises, more aptly known as E-Business Companies (EBCs). This study serves a dual purpose: firstly, to delve into widely researched conventional market entry theories, and secondly, to scrutinize the relevance of these theories concerning the internationalization process for both traditional and electronic businesses operating within the financial sector. Addressing this intricate subject necessitated a cross-case comparative analysis employing secondary data. Potential distinctions and parallels between the two were underscored by juxtaposing the case study entities. The outcomes revealed a contrast between the gradual expansion of traditional companies and the rapid internationalization process of EBCs, largely propelled by Internet technology and relatively unencumbered by traditional market entry barriers. Both firms’ managerial strategies and organizational culture influenced their expansion trajectories. This study contributes by consolidating and aggregating existing literature, enhancing its applicability, and furnishing a foundation for future research in this domain.