What is it about?
While the internet enjoys increasing interest regarding its potential to extend the global reach of firms, especially small and medium‐sized firms (SMEs), little work has been done on the viability of the internet as a new and effective path to internationalization.
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Why is it important?
The authors develop a framework and explore previously untested relationships that suggest the internet may play a complementary role in firm internationalization. We also challenge the notion that the Internet is a powertool that always works. Essentially, we show that overly relying on the Internet may lead firms to fall into a "virtuality trap".
Perspectives
The internet is frequently seen as a silver bullet when it comes to venturing into international markets, specifically for SMEs. Yet, it is unclear whether all the hype actually leads to profitable outcomes for SMEs. This paper examines whether the internet is a good alternative to setting up shop in international markets and whether it is a good sales channel. We find that the internet is is only useful under certain conditions. Specifically, born-global firms that are relying too much on the internet are prone to fall into the “virtuality trap”.
Professor Rudolf R Sinkovics
University of Glasgow
Online (sales) channel support positively enhances export performance for SMEs. Yet, the use of the internet as an alternative to a physical market presence does not lead to higher export performance. Specifically, born-global firms that are relying too much on the internet are prone to fall into the “virtuality trap”. This paper empirically supports the virtually trap argument by Yamin and Sinkovics (2006) in International Business Review.
Dr Noemi Sinkovics
University of Glasgow
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This page is a summary of: The internet as an alternative path to internationalization?, International Marketing Review, April 2013, Emerald,
DOI: 10.1108/02651331311314556.
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Resources
Video - The internet as an alternative path to internationalization?
While the internet enjoys increasing interest regarding its potential to extend the global reach of firms, especially small and medium-sized firms (SMEs), little work has been done on the viability of the internet as a new and effective path to internationalization. The authors develop a framework and explore previously untested relationships that suggest the internet may play a complementary role in firm internationalization.
Powerpoint - The internet as an alternative path to internationalization?
Academic powerpoint presentation, slides that guide through the paper published in IMR 2013 Sinkovics, Noemi, Rudolf R. Sinkovics, and Ruey-Jer “Bryan” Jean (2013), "The Internet as an Alternative Path to Internationalization?," International Marketing Review, 30 (2), 130-155. http://dx.doi.org/10.1108/02651331311314556
Video - youtube
While the internet enjoys increasing interest regarding its potential to extend the global reach of firms, especially small and medium-sized firms (SMEs), little work has been done on the viability of the internet as a new and effective path to internationalization. The authors develop a framework and explore previously untested relationships that suggest the internet may play a complementary role in firm internationalization.
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