Abstract:
In emerging markets, local technology firms (referred to as EM digital INVs) are increasingly driving business ecosystem development and inclusive growth. Many of such firms are internationalizing to other emerging markets early in their development, thereby creating competitive advantages across borders. However, a lack of empirical studies of such firms has meant that there is limited understanding of their internationalization process.
This study explores the initial stages of EM digital INVs internationalization, specifically investigating how such firms identify and exploit opportunities in other emerging markets. The study took an exploratory approach, using qualitative methods to interview 12 founders and internationalization managers of EM digital INVs from countries across sub-Saharan Africa. The study led to the development of the EM digital INVs internationalization model, which illuminated the process of identifying opportunities, overcoming internationalization barriers, accumulating resources and determining entry mode.
The study contributes to the literature by classifying a new type of firm, EM digital INVs. Furthermore, the study addresses the lack of research conducted on emerging market firms, specifically those in the technology sector.
