Internet-based sales channel strategies of born global firms

Abstract

Recent changes in the technological environment have had a significant impact on the available sales channel alternatives. At the forefront of this development are the born global firms, which have been relatively quick to adopt Internet-based channels. Interestingly, many of these firms have relied not only on Internet-based channels, but also used combinations of conventional channels and the Internet. This study describes and analyzes the structure and development from single towards multiple sales channels. It develops a framework consisting of three independent factors: (1) the globalization process, (2) market structure and Internet suitability, and (3) long-term channel relations. These are examined in a multiple case study consisting of 35 cases. The Internet-based multiple sales channels proved to be more common in born globals that had reached a higher globalization degree than in those which were still at a preliminary stage. A novel finding was that relationship development with small local channels and MNCs also remains important when Internet sales channels are used. These results contribute to a relatively under-researched area focusing on international Internet-based sales channels and use of multiple channels.