Scaling digital and non-digital business models in foreign markets: The case of financial advice industry in the United States

Research output: Contribution to journalArticlepeer-review

Abstract

This study investigates whether a digital business model helps firms internationalize faster. It tests the hypothesis that a digital business model accelerates the rate of internationalization because economies of scale enabled by digitalization exceed those offered by a non-digital business model. Based on analysis of foreign digital and non-digital entrants in the U.S. financial advice industry, the study found that while digital entrants scaled faster than their non-digital counterparts, a diverse product portfolio harmed digital entrants even when it benefited non-digital entrants. The contrast between scale and scope highlights that digitalization only conditionally benefits internationalization.

Original languageEnglish (US)
Article number101457
JournalJournal of World Business
Volume58
Issue number4
DOIs
StatePublished - Jun 2023

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

Keywords

  • Business model
  • Digitalization
  • Internationalization
  • Longitudinal study
  • Multivariate analysis
  • Scaling

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