Amodel for the internationalisation of e-commerce scale-ups : Represented by a conceptual prototype of a digital tool that assists firms in localising its business model to better address local customer needs

Abstract: The internet has transformed the way people sell and buy goods and services. E-commerce is a fast-growing industry with low barriers to entry, making it easy to start an e-commerce business – but scaling it is a whole other matter. One common scaling method is international expansion. However, young e-commerce companies often lack strategy and process when expanding internationally. This ad hoc approach results in missed opportunities, waste of resources, and sub-optimal operations for the company. This thesis examines the process of internationalisation for e-commerce companies and what factors contribute to its success, with the aim to provide a model that can guide companies through the whole internationalisation process. Qualitative data has been collected from interviews with experts in the field and a case study of an e-commerce scale-up. Together with a literature review, this data is synthesised into an internationalisation model, built upon the three guiding principles of being customer-centric, iterative, and resource-efficient. The model consists of a series phases, from pre-launch to maturing, with an iterative component that entails a shift of strategy from replication to increased localisation of the business model. Operational results indicate to which degree localisation is necessary. Internationalisation is a complex process, and any detailed model explaining internationalisation quickly becomes complex as well. Therefore, in order to facilitate the practical application of the model for businesses, a conceptual prototype of how the international model could be translated into a digital format is developed and evaluated. As a result, e-commerce firms now have an interactive tool that empowers managers to make more accurate and effective business decisions when it comes to both international expansion strategy and also tactics, due to its action-oriented design. Considering that there is little research that provides explicit advice for young e-commerce firms pursuing internationalisation as a growth strategy, and even less when it comes to the development of a digital business tool, this thesis contributes to filling this research gap.