The Impact of Digitalization on Internationalization of High-Tech Firms : A Case Study of Space Company

• Main Author: Muriu, Elizabeth Wangeci
• Format: Bachelor Thesis
• Language: English
• Published: Luleå tekniska universitet, Institutionen för ekonomi, teknik och samhälle 2021
• Subjects: Digitalization; Internationalization; Born Global Firms; Emerging Markets; Foreign market entry strategies; Business Administration; Företagsekonomi; Arctic
• Online Access: http://urn.kb.se/resolve?urn=urn:nbn:se:ltu:diva-85973

ABSTRACT This master thesis examined the impact of digitalization on the speed of internationalization and explores the various foreign market entry options for a company that would like to expand from a developed market to an emerging market as part of its internationalization. The case study analyzed in this paper is Arctic Space Technologies, a unique satellite operator company offering an all-in-one solution for sustainable satellite data handling and processing. The firm’s founders have a niche market (satellite operators) and have established business in Sweden and would like to enter an emerging market (South Africa). The firm can be classified under the high-tech industry and the study obtained valuable information that could be useful to other similar firms. The nature of technology for adoption is easily transferable for such firms regardless of geographical location. Digitalization is instrumental in facilitating earlier and faster internationalization through digitalized knowledge, network creation and decision-making processes (Coviello et al., 2017). The digitalization of new foreign market development helps such firms to efficiently identify new market opportunities in global markets and with this approach, they save resources while developing the most attractive markets (Neubert, 2018a). Qualitative research was applied through a company case study, where primary interviews and a survey were used to collect data. A case study was employed to further understand and practically apply adaptations a firm can make to increase its chances of success in a foreign market environment. The researcher also obtained information from desktop and literature review. The study findings suggested that business networking, business models, culture and geographical distance, market size are key factors that influence the choice of foreign market entry mode for a high-tech firm internationalization process from a developed market to an emerging market. In addition, the main challenges faced by born-global firm in ...