Challenges for internationalization models : the case of e-commerce ventures' informal internationalization

Abstract

This paper investigates if internationalization models can be applied to American e-commerce ventures. Empirical results show that e-commerce ventures do not follow internationalization models, in which companies either focus on their national market before expanding to other markets or aim for an early internationalization. Many e-commerce ventures start with informal exports and then either formalize these sales channels, either focus only on the US market. The probability of informal exports declines when firm size increases. These results challenge internationalization models and call for a revision of them to include informal exports.