Cogent Business & Management (Dec 2024)
Internationalisation of born-digital enterprises using an effectuation lens: case studies in the games industry
Abstract
Due to advanced technologies and widespread internet usage worldwide, many small and young start-ups have had a chance to explore international markets. Games companies from emerging markets, without exception, have used digital technologies to create and exploit international markets since their founding. However, we still do not fully understand the internationalisation process of born-digital companies, which rely on digital platforms and infrastructure. This study seeks to understand how born-digital entrepreneurs from emerging markets decide and behave when pursuing international opportunities. The data were obtained from two case studies conducted on game companies in Indonesia. The cases demonstrated the application of effectuation logic in the early phase and subsequent internationalisation. Despite encountering various obstacles, such as limited resources encompassing insufficient business acumen, international connections, prior international exposure, governmental backing, and constrained financial resources, entrepreneurs relied upon their passion for gaming, courage, expertise in game development, and assistance from their family and peers to initiate a digital enterprise. Experimentation through developing diverse games and selling them to various distributors, coupled with establishing commitments with them, demonstrates a robust strategic approach that enables firms to accelerate their business overseas. This study also revealed that utilising digital platforms, such as crowdfunding, helps entrepreneurs acquire financing and collaborate with potential customers to gain insights into their desires and save expenses associated with market validation. This study contributes to the existing body of knowledge by examining the adoption of effectuation by born-digital firms in emerging markets.
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