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

Murad A. Mithani

doi:10.1016/j.jwb.2023.101457

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

Murad A. Mithani

Camden School of Business

Rutgers, The State University

Research output: Contribution to journal › Article › peer-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 language	American English
Article number	101457
Journal	Journal of World Business
Volume	58
Issue number	4
DOIs	https://doi.org/10.1016/j.jwb.2023.101457
State	Published - 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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10.1016/j.jwb.2023.101457

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

Abstract

ASJC Scopus subject areas

Keywords

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