Drivers of internationalisation in network industries: the case of electronic purse developers

This paper analyses how and why the first generation of e-purse developers have tried to penetrate international markets. The analysis covers the period between 1992 and 2006, and builds on 16 firm-level case studies that span developments in more than 30 countries around the globe. The paper examines the nature of the drivers behind the observed internationalisation strategies, as well as their pace and organisational form, by building on the approach that Sarkar, Cavusgil, and Aulakh (1999) propose for the telecom sector. The paper finds that the quest for enhanced power in standard-setting debates appears to have been particularly important as a driver. Also, just like telecommunication carriers, e-purse developers follow strategies of market and partner preemption, albeit for different reasons.

Publication year:2013

Keywords:internationalisation strategies, market entry mode, market entry timing, technology licensing, joint ventures, alliances, network industries, electronic purse, payments