Exploring Internationalisation for Online Service Providers

Abstract: Background: There are many theories regarding internationalisation and growth but not much is written about the subject in a combination with the online business field. As Internet actors are increasing in number, the area is interesting in several aspects. Purpose: The purpose of this study is to define important factors regarding internationalisation of online service providers. Method: A literature study is conducted together with a case study of five market entries for an online service provider. The case study has a qualitative approach and is mainly based on semi-structured interviews with market managers at the target company. Theoretical framework: The study’s frame of reference includes theory regarding internationalisation, service management, and online business. The analysis model used in the study is built up from three theoretical frameworks: the PEST analysis, the CAGE distance analysis, and the Three Cs analysis. Results: Several different factors were found to be of importance for online service providers looking to enter a new market. Summarized the factors found to be of importance were cultural distance (including the aspect of trust), the development rate of Internet usage, the maturity of the market for the service technology, and the company’s presence on the market. The most important factor for the enabling of a successful market entry was found to be the knowledge acquired of the market and the target market before the entry, which could greatly contribute to faster reaching the target market and possible suppliers. Some factors were also found to be specific for the target company, which indicates that there are additional factors of importance to be found for every specific company and their field of business.