This thesis investigates the internationalisation complexities of cloud technology vendors. To enhance the understanding of foreign market expansion of cloud providers, this study sought to answer the overarching research questions: how do cloud providers internationalise and is available literature to date still relevant for cloud technology vendors? The researchers utilised a single case study of NN, an expanding Danish cloud SME, to provide indepth insights for the business literature realm which has so far attracted scarce research. Literature has focused almost exclusively on SMEs, MNCs and born globals, but cloud providers were mostly ignored. To date, little systematic investigations have considered that the dynamics and processes of internationalisation significantly change in a cloud context.
The most important contribution is a research model encompassing twelve moderator variables impacting the performance of cloud firms. Their suggested influence was drawn from a thorough theoretical analysis of contemporary internationalisation literature from the 1950s to the present day. Thereby both versions of the Uppsala Model of Internationalisation by Johanson and Vahlne (1977, 2009) were selected as suitable to provide structure for the research model, namely the process model and the network model. Complementing the four categories of the Uppsala Model, the research model was enhanced with two additional categories so as to examine cloud vendor internationalisation.
Using a sample of five employees who are directly responsible for internationalisation activities of the case company NN, this thesis offers interesting insights into the complexities of cloud internationalisation. The findings illustrate that internationalisation literature to date is still useful for examining internationalisation performance, and in particular the network model. However, since cloud vendors mainly operate virtually, this brings forth many advantages and disadvantages which have previously not been considered. Theoretical contributions and implications for future research are discussed. This thesis provides support for ten out of twelve items and offers various compelling areas for future research.
Table of Contents
1 Introduction
1.1 Problem Definition and Objective
1.2 Course of Investigation
2 Literature Review
2.1 Conceptualisation of Cloud Technology
2.2 Theories of Internationalisation & The Uppsala Model
2.2.1 The Economic Perspective
2.2.2 The Behavioural Perspective
2.2.3 The Relational Perspective
2.2.4 The Entrepreneurial Perspective
2.2.5 The Uppsala Model: The Process Model of 1977
2.2.6 The Uppsala Model: The Network Model of 2009
2.3 Knowledge & Networks in Internationalisation Literature
2.3.1 The Process Model and Knowledge
2.3.2 The Network Model and Knowledge
2.3.3 Experiential Knowledge
2.3.4 Other Types of Knowledge
2.3.5 Individual Characteristics
2.3.6 Learning and Knowledge Absorption
2.3.7 Relationships and Network Positioning
2.4 Effects of Cloud Technology on Internationalisation
3 Case Company Overview
4 Methodology
4.1 Research Model
4.2 Data Collection
4.2.1 Qualitative Interview Structure
4.2.2 Participants
4.3 Data Analysis
4.4 Deductive Category Assignment
4.4.1 Definition of the Category System from Theory
5 Results
5.1 Market Knowledge / Knowledge Opportunities
5.1.1 Entrepreneurial Dispositions (H1+)
5.1.2 Network Opportunities (H8+)
5.2 Market Commitment / Network Position
5.2.1 Network Opaqueness (H3-)
5.2.2 Varied Portfolio (H6+)
5.2.3 Network Composition and Dependency (H7a-, H7b+)
5.3 Commitment Decisions / Relationship Commitment Decisions
5.3.1 International Employee (H9+)
5.4 Current Activities / Learning, Creating, Trust-Building
5.4.1 Learning (H2+)
5.4.2 Virtuality Trap (H11-)
5.5 Cloud-Specific Product Attributes
5.5.1 Relationship Service (H5+)
5.5.2 Information Good (H10+)
5.6 Cloud-Specific Market / Customer-Related Factors
5.6.1 Cloud Readiness (H4-)
5.6.2 Bandwagon Effect (H12-)
6 Limitations and Implications for Future Scientific Research
7 Conclusion
Objectives and Research Themes
This thesis examines the complexities of internationalisation for cloud technology providers. The central research objective is to determine how cloud-based firms expand into foreign markets and whether existing internationalisation theories, developed for traditional business models, remain relevant in a cloud-computing context.
- Analysis of the Uppsala Model of Internationalisation (1977 and 2009 versions) in the context of virtual cloud environments.
- Evaluation of cloud-specific factors such as "rapid scalability," "cost associativity," and the "virtuality trap."
- Exploration of the roles of knowledge, network positioning, and entrepreneurial dispositions in international market expansion.
- Qualitative case study research of an expanding Danish SaaS provider to derive and test new hypotheses regarding cloud internationalisation.
Excerpt from the Book
2.1 CONCEPTUALISATION OF CLOUD TECHNOLOGY
Academics are yet to agree on a general definition of cloud technology, hence there are many definition proposals (Armbrust et al., 2010; Marston et al., 2009), some as long as 800 characters. For the purpose of this thesis, the official definition of National Institute of Standards and Technology (NIST) will be used, since it encapsulates the most important aspects: “Cloud computing is a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications, and services) that can be rapidly provisioned and released with minimal management effort or service provider interaction” (Mell & Grance, 2011, p. 2). Put simply, the cloud centralises data storage, processing and bandwidth, and thereby delivers an on-demand service to customers over a network which is typically the internet.
This service can be accessed without installation since computing resources, referring to both hardware and software, derive from shared central remote servers that maintain data and applications (Bora & Ahmed, 2013). The cloud’s name originates from the abstraction of the internet visualised as clouds (Srinivasa et al., 2009). Historically large internet-based companies such as Amazon and Google realized their data storage capacities were immensely underused which led to renting out of remote server capacities, or “clouds” (ibid).
Summary of Chapters
1 Introduction: Defines the research problem regarding cloud technology and its impact on traditional internationalisation theories.
2 Literature Review: Provides a comprehensive overview of existing internationalisation theories and their application to the cloud context.
3 Case Company Overview: Introduces the case company, NN, and details its history, service model, and international expansion activities.
4 Methodology: Outlines the qualitative research approach, the research model, and the data collection process via expert interviews.
5 Results: Presents the findings of the empirical research, testing twelve hypotheses related to cloud internationalisation.
6 Limitations and Implications for Future Scientific Research: Critically discusses the methodological limitations of the study and suggests areas for future research.
7 Conclusion: Summarizes the key findings and evaluates the relevance of contemporary literature for cloud technology vendors.
Keywords
Cloud Computing, Internationalisation, Uppsala Model, SaaS, Network Theory, Knowledge Absorption, Virtuality Trap, SME, Foreign Market Entry, Entrepreneurial Dispositions, Network Opaqueness, Organisational Learning, Information Goods, Global Expansion, Case Study.
Frequently Asked Questions
What is the primary focus of this research?
The thesis investigates how cloud technology vendors expand internationally and assesses whether existing internationalisation literature is still applicable to these types of firms.
What are the key themes addressed in this work?
The work covers the conceptualisation of cloud technology, theoretical perspectives on internationalisation, the role of knowledge and networks, and the specific challenges faced by cloud firms in foreign markets.
What is the core research question?
The study addresses two main questions: How do cloud providers internationalise, and is the existing internationalisation literature relevant for cloud technology vendors?
What methodology was applied?
The author conducted a qualitative, explorative single case study of a Danish SaaS provider, utilizing unstructured interviews with five employees involved in internationalisation.
What does the main body cover?
The main body examines various theoretical models—specifically the Uppsala Process and Network models—and synthesizes these with cloud-specific factors to develop twelve hypotheses for testing.
Which keywords best characterize this thesis?
Keywords include Cloud Computing, Internationalisation, Uppsala Model, SaaS, Network Theory, Knowledge Absorption, and Virtuality Trap.
How does the "virtuality trap" impact cloud firms?
It impacts firms through superstitious learning and the misinterpretation of market knowledge, as cloud providers may incorrectly assume they have sufficient market knowledge despite the lack of physical presence.
Why are franchisees important to the case company, NN?
Franchisees provide essential local market knowledge and act as "door-openers" in psychically distant markets, helping NN overcome its lack of initial local presence and market research.
Does NN qualify as an "information good" provider?
No, the findings conclude that NN's solution, due to its complexity and the need for sensitive data management, does not function as a simple information good (like Spotify or Netflix), meaning it cannot easily sell the same solution universally without adaptation.
- Arbeit zitieren
- Christina Küppers (Autor:in), 2016, Internationalisation in the Cloud. An explorative case study into the foreign market expansion of SaaS providers, München, GRIN Verlag, https://www.grin.com/document/369378