Journal article

The international penetration of ibusiness firms: Network effects, liabilities of outsidership and country clout

L Chen, Noman Shaheer, Jingtao Yi, Sali Li

Journal of International Business Studies | Palgrave Macmillan (part of Springer Nature) | Published : 2019


The burgeoning of ibusiness firms in the modern digital economy challenges the received internationalization theory. Given that ibusinesses such as social networking sites create value by providing a digital platform for users to interact with one another, we employ a user-network perspective and externalization logic, suggesting that ibusinesses’ internationalization process depends critically on users’ collective interactions, instead of being solely driven by firms’ market commitments, as noted by the Uppsala model. However, ibusinesses may suffer from liabilities of outsidership due to the boundedness of international network effects. Drawing on social network theory, we demonstrate that..

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University of Melbourne Researchers


Awarded by National Natural Science Foundation of China

Funding Acknowledgements

We thank JIBS editor Peter Liesch and two anonymous reviewers for valuable guidance. We also appreciate the helpful suggestions received from session participants of the Academy of International Business. The names of the authors are given randomly and all contributed equally to the paper. This research is partly funded by grants from the CIBER University of South Carolina and the National Natural Science Foundation of China (Grant No. 71373010, 71873136, and 71732008).