New IE Articles: May 2023

Global Strategy Journal—DOI: https://doi.org/10.1002/gsj.1483

Characteristics of digital artifacts in international endeavors of digital-based international new ventures

Ojala, A., Fraccastoro, S., Gabrielsson, M.

Current research on digital artifacts and international business reveals that digitalization is changing how firms enter international markets and operate within them. The unbounded nature of digital artifacts provides opportunities for entrepreneur-driven firms to rapidly launch and develop digital platforms for international markets. However, extant literature provides little guidance on leveraging the specific characteristics of digital artifacts and what entrepreneurs should do to facilitate internationalization. We conducted an extensive longitudinal case study spanning more than 10?years to garner data on digital-based INV pursuing internationalization. We aimed to conceptualize a theoretical model explaining the role of entrepreneurs in integrating, building, and reconfiguring their capabilities to leverage the characteristics of digital artifacts for platform development.

Journal of World Business – Volume 58 (Issue 2), DOI: https://doi.org/10.1016/j.jwb.2022.101418

Business model adaptation for realized international scaling of born-digitals

Irina Mihailova

This study examines the process and mechanisms of realized international scaling of born-digital firms through the business model lens. In an explorative multiple-case study of Finnish firms in cultural industries, it finds that born-digital firms adapt their business models through an iterative process to achieve practically scaled operations. The research unpacks the mechanisms guiding the process of business model adaptation and highlights the role of dynamic capabilities in their employment. The findings extend existing theorizing on scaling by offering a conceptualization of realized international digital scaling and the role of the business model in its implementation.

Journal of World Business – Volume 58 (Issue 2), DOI: https://doi.org/10.1016/j.jwb.2022.101398

How do entrepreneurs’ cross-cultural experiences contribute to entrepreneurial ecosystem performance?

Rui Shen, Hai Guo, Hongjia Ma

While research on the cross-cultural experience of entrepreneurs has demonstrated that exposure to diverse cultures is beneficial for new venture growth, it has neglected the performance implications of entrepreneurs’ cross-cultural experience at the ecosystem level. This study endeavors to explore the micro-macro link between cross-cultural entrepreneurs and the performance of entrepreneurial ecosystems in which they are embedded. Building on the dynamic capability perspective, we argue that entrepreneurial ecosystem orchestrators can leverage entrepreneurs’ cross-cultural experiences to develop ecosystem dynamic capabilities and consequently improve entrepreneurial ecosystem performance. Based on multi-wave survey data of 2,981 business incubators in China, our findings show that cross-cultural entrepreneurs are positively associated with entrepreneurial ecosystem performance via increased ecosystem innovation. Moreover, the integrative capability of ecosystem orchestrators moderates the relationship between cross-cultural entrepreneurs and ecosystem innovation. Our findings contribute to the literature on cross-cultural experience by extending it to the ecosystem level and inject fresh insights into the dynamic capability literature by uncovering the formation process of ecosystem dynamic capabilities.