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The impact of industry 4.0 on the 2017 version of the Uppsala model
Aalborg University, Denmark. (waheed.bhatti@lnu.se)
University of Gothenburg, Sweden.
Berlin School of Economics and Law, Germany.
University of Vaasa, Finland.
2022 (English)In: International Business Review, ISSN 0969-5931, E-ISSN 1873-6149, Vol. 31, no 4, article id 101996Article in journal (Refereed) Published
Abstract [en]

The emergence of Industry 4.0 offers firms internationalization opportunities employing digital platforms and emerging technologies. Relying upon the Uppsala model as applied in light of a firm case study, we contribute to the validity of the Uppsala model 2017. We respond to the counterpoint by Coviello, Kano, and Liesch (2017) to the Uppsala 2017 model, answering the question, What is the impact of Industry 4.0 on the validity of the 2017 version of the Uppsala model? This study builds on a qualitative research methodology through a single case study of Delivery Hero, a global service provider firm. We adopt an extensive longitudinal approach to understand a startup firm's digital business concept and business evolution, including its internationalization paths. We conclude that the mechanisms of the Uppsala model are valid, but their characteristics have changed by digital and globalized value-adding processes. The dynamic capabilities possessed by the founding entrepreneur turn out to constitute a critical micro foundation for the firm's international business success. Our findings explain these change mechanisms, illustrating the stepwise progression process led by entrepreneurial decision-making. Industry 4.0 technologies have changed the very manner by which firms arrange their value-adding activities with their business stakeholders in course of the firm's internationalization. By relying on reasonable business targets, algorithms, and data management systems, real-time market monitoring enables international startup firms to learn and adopt local identities faster, thereby efficiently alleviating liabilities of foreignness.

Place, publisher, year, edition, pages
Elsevier, 2022. Vol. 31, no 4, article id 101996
National Category
Economics and Business
Research subject
Economy, Business administration
Identifiers
URN: urn:nbn:se:lnu:diva-125183DOI: 10.1016/j.ibusrev.2022.101996ISI: 000877503500014Scopus ID: 2-s2.0-85126034384OAI: oai:DiVA.org:lnu-125183DiVA, id: diva2:1805607
Available from: 2023-10-17 Created: 2023-10-17 Last updated: 2023-10-25Bibliographically approved

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Bhatti, Waheed Akbar

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CiteExportLink to record
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Citation style
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