2019
DOI: 10.1057/s41267-019-00263-3
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Ecosystem-specific advantages in international digital commerce

Abstract: We consider the applicability to digital platforms of extant international business scholarship. The organization of digital platforms has been seen to such an extent as predicated upon the bundling of external resources for collective value creation that their expansion may follow the logic of externalization. We further that literature contrasting the governance of network multinationals with that of platform-centric ecosystems. Building on and extending the theory of the ecosystem, we propose the concept of… Show more

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Cited by 167 publications
(156 citation statements)
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References 110 publications
(137 reference statements)
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“…In the wake of modern technologies, firms can leverage information technology to remotely access the location-bound assets of partner firms and even establish virtual multinationals (Cavusgil, Deligonul, and Yaprak 2005; Zaheer and Manrakhan 2001). The advent of digital platforms may further reduce the location-boundedness of interfirm alliances by connecting businesses—developers, advertising platforms, online payment systems, and toolkit providers—from across the world to form virtual ecosystems (Ganco, Kapoor, and Lee 2020; Li et al 2019). Such ecosystems are governed through globally standardized protocols enacted by platforms rather than national institutional systems (Stallkamp and Schotter 2019), which many deem supply-side location advantages less relevant for digital firms.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
See 1 more Smart Citation
“…In the wake of modern technologies, firms can leverage information technology to remotely access the location-bound assets of partner firms and even establish virtual multinationals (Cavusgil, Deligonul, and Yaprak 2005; Zaheer and Manrakhan 2001). The advent of digital platforms may further reduce the location-boundedness of interfirm alliances by connecting businesses—developers, advertising platforms, online payment systems, and toolkit providers—from across the world to form virtual ecosystems (Ganco, Kapoor, and Lee 2020; Li et al 2019). Such ecosystems are governed through globally standardized protocols enacted by platforms rather than national institutional systems (Stallkamp and Schotter 2019), which many deem supply-side location advantages less relevant for digital firms.…”
Section: Theory and Hypothesesmentioning
confidence: 99%
“…Our study extends research on location advantage to incorporate the unique demand-side dynamics of digital internationalization. An important limitation of current literature is an extensive focus on supply-side location advantages, which puts into question the relevance of location in a digital age when globally accessible platforms orchestrate borderless ecosystems, virtually connecting developers, advertising platforms, SDK providers, and payment services from across the world for development and marketing of digital technologies (Li et al 2019). We revitalize the importance of location by moving beyond supply-side factors to highlight novel demand-side location advantages that emanate from user interactions in lead markets.…”
Section: Theoretical Contributionsmentioning
confidence: 99%
“…We collected M&A data and financial data from two datasets, one of which was derived from the BVD (Zephyr) database, which is a well-known international M&As database and widely used in cross-border M&A research [49,50]. However, distorted data points remained.…”
Section: Methodsmentioning
confidence: 99%
“…An agreed mode of digital transformation both in territorial aspect and sectoral aspect on a national economy scale as many interested and potentially interested participants as possible in adjustments, caused by digital transformation, creates conditions to change added-value chains and digitalization of the main economic processes (Li et al, 2019). In such conditions, traditional assets are revalued and inventoried, modifying assets' forms and content (Patton & Weller, 2020).…”
Section: The Main Role Of Intellectual Technologies In the Modern Economymentioning
confidence: 99%