This thesis examines how a software start-up can effectively shape its internationalization process to secure its market position and to achieve a sustainable competitive advantage. To formulate possible recommendations, a literature study and a descriptive case study are carried out. The literature review considers the research domains of born globals, or rather, international new ventures, which describe the emergence of young, small and fast internationalized organizations. Furthermore, the literature study also reflects relevant theoretical explanations and frameworks such as: resource-based theory, knowledge-based view, dynamic capabilities, organizational learning, innovation theory, and international entrepreneurship. On this theoretical basis, study propositions are derived, which are then tested against the case study. The study consists of two cases and describes the internationalization process of two software start-ups. The results of the case study are then compared with the study propositions. Deviations are discussed in detail later. Finally, 24 recommendations are made which can support the effective internationalization process of a software start-up.
Table of Contents
1. Introduction
1.1 Motivation
1.2 State of Research
1.3 Research Question
1.4 Structure of the Work
2. Literature Review
2.1 Born Globals / International New Ventures
2.2 Resource-Based Theory
2.3 Knowledge-Based View
2.4 Dynamic Capabilities
2.5 Organizational Learning
2.6 Innovation Theory
2.7 International Entrepreneurship
3. Methodology
3.1 Research Method
3.2 Scope Delimitation
3.3 Data Collection and Data Analysis
4. Results
4.1 Company X
4.2 Company Y
5. Discussion
5.1 Pattern Matching
5.2 Detailed Analysis
5.3 Recommendations
6. Conclusions
6.1 Summary
6.2 Future Research
7. Bibliography
Objectives and Research Themes
This master thesis aims to identify and describe the essential conditions for an effective internationalization process in software start-ups, ultimately seeking to understand how these firms can secure their market position and achieve a sustainable competitive advantage in a globalized economy.
- The influence of resource-based theory and dynamic capabilities on start-up growth.
- The role of organizational learning and knowledge management in rapid internationalization.
- Comparative analysis of internationalization strategies in software-based business models.
- Development of practical recommendations for software start-ups regarding their global expansion.
Excerpt from the Book
1. Introduction
Traditionally, international business (IB) was reserved for large multinational enterprises (MNEs) such as Apple, IBM or Microsoft. These companies (hereinafter also referred to as firms or organizations), being generally made up of thousand employees and having existed for several decades, offer their products and services through their worldwide networks of established subsidiaries and affiliates in many different nations (Tamer & Knight, 2009, p. 7). Distance and geographical location were considered to be natural barriers to global markets (Oviatt & McDougall, 1995, p. 33).
The increasing globalization and technological progress have changed the competitive landscape for companies and simplified the entry into international markets for micro, small and medium-sized enterprises (SMEs) like start-ups (SUs): The development of information and communication technology (ICT) has had the effect of breaking down barriers in communication (Nowiński & Rialp, 2013, p. 194). Internet and electronic mail, for example, improved and reduced the cost of communications, enabling SMEs to conduct business across virtual markets, and build or maintain contacts within its network such as partners or potential customers around the world (Loane, 2005, pp. 194-195). Globally operating airlines connected the world and made it possible to reach any destination within a day (Oviatt & McDougall, 1995, p. 30). Standardization in containerization of freight also reduced expenses and increased the speed of goods movements in all countries (Oviatt & McDougall, 2005, p. 542). An increasing homogenization of markets (Oviatt & McDougall, 1994, p. 51) and industry deregulations (McDougall-Covin, et al., 2014, p. 2), falling trade barriers and the availability of external sources of financing such as venture capital (Nowiński & Rialp, 2013, pp. 194-195) are further examples of simplified access to international markets.
Summary of Chapters
1. Introduction: Presents the motivation, state of research, and the central research question regarding the effective internationalization of software start-ups.
2. Literature Review: Discusses theoretical foundations including Resource-Based Theory, Knowledge-Based View, Dynamic Capabilities, Organizational Learning, Innovation Theory, and International Entrepreneurship.
3. Methodology: Outlines the qualitative multi-case study approach, detailing the research design, scope, and data collection techniques used for the analysis.
4. Results: Provides empirical data on the internationalization processes of two anonymous software start-ups (Company X and Company Y).
5. Discussion: Compares empirical findings with theoretical study propositions using pattern matching and presents derived recommendations.
6. Conclusions: Summarizes the study's findings and suggests avenues for future research, particularly regarding the gig economy.
7. Bibliography: Lists the academic literature and sources referenced throughout the thesis.
Keywords
Software Start-Up, Born Global, International New Venture, Internationalization Process, International Entrepreneurship, Descriptive Case Study, Resource-Based Theory, Dynamic Capabilities, Organizational Learning, Innovation Theory, Sustainable Competitive Advantage, Knowledge Management, Global Strategy.
Frequently Asked Questions
What is the primary focus of this thesis?
This work examines how software start-ups can effectively shape their internationalization processes to maintain market position and gain sustainable competitive advantages.
What are the central thematic fields?
The core themes include international business strategies, the application of resource-based and knowledge-based theories, and the dynamic capabilities of young, rapidly internationalizing firms.
What is the core research question?
The research asks how a software start-up can effectively shape its internationalization process to secure its market position and achieve a sustainable competitive advantage.
Which scientific method is employed?
The thesis utilizes a qualitative, multi-case study design, employing expert interviews, internal document analysis, and publicly available information to triangulate evidence.
What does the main body cover?
The main body comprises an extensive literature review of theoretical frameworks, followed by a presentation and analysis of empirical data from two distinct software start-up case studies.
Which keywords characterize this work?
Key terms include "Born Global," "International New Venture," "Software Start-Up," "International Entrepreneurship," and "Dynamic Capabilities."
How does Company X's business model impact its internationalization?
Company X leverages a standardized product (Drupal-based themes) that allows for centralized value chain management, requiring minimal localization and enabling immediate global reach.
How does Company Y differ in its approach?
Company Y, operating within the gig economy, faces higher localization requirements due to local service operations, necessitating a more complex, region-specific internationalization approach.
What role does the "War Mode" play for Company Y?
It describes a state of high flexibility and intense focus on maintaining market lead, which helps the company adapt rapidly but also introduces challenges for internal knowledge management as the staff grows.
What are the key conclusions regarding recommendations?
The study concludes that effective internationalization requires a holistic alignment of founder characteristics, strategic focus, and organizational capabilities, supported by 24 specific, actionable recommendations.
- Quote paper
- Timo Mueller (Author), 2017, Internationalization Process of Software Start-Ups, Munich, GRIN Verlag, https://www.grin.com/document/374423
